|Bank loans||1 529 220||1 073 203|
|Borrowings||35 433||31 484|
|Bonds||4 368 707||1 104 961|
|Long-term||5 933 360||2 209 648|
|Bank loans||5 342||4 489|
|Borrowings||9 583||4 386|
|Short-term||43 399||8 875|
|Total||5 976 759||2 218 523|
Loans and borrowings
A brief description of significant loan agreements and borrowings of the ENEA Group is presented below:
On 29 May 2015 ENEA S.A. executed a loan agreement (Agreement C), under which the European Investment Bank (EIB) has made available new financing in the amount of PLN 946 000 thousand or its equivalent in EUR to the Issuer. Similarly as in the previous loan agreements ENEA S.A., EBI and ENEA Operator Sp. z o.o. concluded the agreement, which settles issues related to the rules of the Programme realization in part based on funds granted by EIB.
At present ENEA S.A. has loan agreements concluded with EIB for a total amount of PLN 2 371 000 thousand (agreement A for PLN 950 000 thousand, agreement B for PLN 475 000 thousand and agreement Cfor PLN 946 000 thousand).
The funds from EIB are designated for financing of long-term investment plan for the modernization and extension of the power grids of ENEA Operator Sp. z o.o. Funds from Agreement A are fully utilized, the availability period for Agreement B expired on 31 December 2015 and the availability period for Agreement C is March 2017. Interest rate on loans can be fixed or floating.
Under the financing agreements A and B concluded with EIB ENEA S.A. received funds in total amount of PLN 1 425 000 thousand in four tranches. The loan is denominated in PLN, with a floating rate based on WIBOR 6-month plus the banks’s margin for three tranches of total amount of PLN 1 325 000 thousand and a fixed rate for one tranche in the amount of PLN 100 000 thousand.
In the third quarter of 2015 ENEA S.A. has received grants from EBI under agreement C in the amount of PLN 100 000 thousand. The loan is denominated in PLN, with a floating rate based on WIBOR 6-month plus the banks’s margin. Tranches will be paid in installments, and the final loan repayment is planned for June 2030.
Miejskie Przedsiębiorstwo Energetyki Cieplnej w Białymstoku Sp. z o.o.
Investment loan for the period from 1 August 2012 till 30 June 2022 - loan in the amount of PLN 7 819 thousand, secured with promissory note issued by the borrower with a declaration and statement of execution from the bill. The creditor is PKO BP S.A.
Investment loan for the period from 12 November 2013 to 12 November 2023 - loan in the amount of PLN 8 548 thousand secured with promissory note issued by the debtor with a declaration and statement of submission to enforcement. The creditor is ING Bank Ślaski.
Szpital Uzdrowiskowy Energetyk Sp. z o.o.
Borowing for the period from 23 September 2011 till 30 September 2020 – loan in the amount of PLN 6 500 thousand with an interest rate based on WIBOR 1M plus margin of 2.20 p.p. The creditor is Siemens Finance Sp. z o.o.
ENEA Wytwarzanie Sp. z o.o.
Investment loan from NFOŚiGW – the loan agreement concluded with NFOŚiGW on 21 May 2010. The last repayment of loan installment is on 20 December 2023. The annual interest rate of the loan is fixed and amounts to 6%.
Investment loan from NFOŚiGW – the loan agreement concluded for the period from 1 July 2013 till 31 March 2018. The annual interest rate of the loan is WIBOR 3M+50 bps.
The total loans of ENEA Wytwarzanie Sp. z o.o. at 31 December 2015 amount to PLN 12 972 thousand.
Lubelski Węgiel Bogdanka S.A.
The Company entered with mBank S.A. into a revolving overdraft facility agreement with the limit of PLN 150 000 thousand. The loan is denominated in PLN. The loan agreement was concluded on 21 May 2014 and is valid till 22 May 2016. As at the reporting date the company did not use the overdraft.
In 2014 the subsidiary of LWB - Łęczyńska Energetyka Sp. z o.o. received from Regional Environmental Protection Fund in Lublin a targeted loan intended for financing on investment “Construction of a Water treatment facility in Bogdanka along with technological connections”.The interest rate of the loan is 0.7 of the rediscount rate determined by the Monetary Policy Council - but not less than 4% per annum. The loan will rebe paid in equal monthly installments starting as of November 2015. The due date for payment of the last installment is 31 March 2024. As at 31 December 2015 the debt amounts to PLN 21 303 thousand.
ENEA S.A. concludes agreements for the bond issue programmes to finance current operations and investments needs of ENEA S.A. and its subsidiaries.
|No.||Name of bonds issue programme||Date of the conclusion of programme||Amount of the programme||Amount issued as at 31.12. 2015||Amount issued as at 31.12.2014||Redemption date|
|1.||Bonds Issue Programme Agreement with PKO BP S.A., Bank Pekao S.A., BZ WBK S.A. and Bank Handlowy S.A.||21 June 2012||3 0000 0000||1 201 000||860 000||Redemption from June 2020 till June 2021|
|2.||Bonds Issue Programme Agreement with Bank Gospodarstwa Krajowego||15 May 2014||1 000 000||1 000 000||260 000||Redemption in installments, final maturity in December 2026|
|3.||Bonds Issue Programme Agreement with ING Bank Śląski S.A., PKO BP S.A., Bank PEKAO S.A. and mBank S.A.||30 June 2014||5 000 000||1 500 000||-||Redemption of a given series in February 2020 and September 2021|
|4.||Bonds Issue Programme Agreement with Bank Gospodarstwa Krajowego||3 December 2015||700 000||-||-||Redemption in installments, final maturity in September 2027.|
|TOTAL||9 700 0000||3 701 000||1 120 000|
Bonds Issue Programme Agreement up to PLN 3 000 000 thousand
On 23 July 2015 ENEA S.A., PKO BP S.A., Pekao S.A., BZ WBK S.A. and Bank Handlowy w Warszawie S.A. concluded an Annex to Bond Issue Programme Agreement, under which pricing conditions have been changed to reflect the current market situation. An Annex established the Bonds Act of 15 January 2015 as a legal basis to issue further bonds.
On 18 December 2015 one issue of bonds was carried out in the total amount of PLN 341 000 thousand under the Programme.
Bonds Issue Programme Agreement to PLN 1 000 000 thousand
On 1 September 2015 ENEA S.A. and Bank Gospodarstwa Krajowego concluded an Annex to the Bond Issue Programme Agreement dated 15 May 2014, which changed the legal basis of the issuance of further bond series to the Bonds Act dated 15 January 2015. In the third quarter of 2015 the second series of bonds under Bond Issue Programme was issued. As at 31 December 2015 Bond Issue Programme concluded with Bank Gospodarstwa Krajowego was fully utilized.
Bonds Issue Programme Agreement to PLN 5 000 000 thousand
On 10 February 2015 the first bond issue was carried out under the Bond Issue Programme up to the amount of PLN 5 000 000 thousand. The total amount of the issue was PLN 1 000 000 thousand. The interest rate on the bonds will be calculated based on WIBOR rate for 6-month deposits plus the margin of 0.85%. Interest will be paid semi-annually on 10 August and 10 February each year. The total redemption of bonds is planned for 10 February 2020. Proceeds from the bonds issue will be used to finance the capital expenditure in line with the strategy of the ENEA Group.
According to the Resolution No. 177/2015 of the Board of National Depository for Securities dated 20 March 2015, above mentioned bonds were registered in the National Depository for Securities on 24 March 2015.
On 7 May 2015 they were admitted to the alternative trading system organized by Catalyst.
On 7 September 2015 ENEA S.A., ING Bank Śląski S.A., PKO BP S.A., PEAKO S.A. and mBank S.A. concluded an Annex no. 1 to the Bond Issue Programme Agreement dated 30 June 2014, which changed the legal basis of the issuance of further bond series to the Bonds Act dated 15 January 2015.
On 16 September ENEA S.A. issued 6-years bonds with the total amount of PLN 500 000 thousand, which have been directed towards one investor. The interest rate is based on the floating WIBOR rate plus margin.
Bonds Issue Programme Agreement to PLN 700 000 thousand
On 3 December 2015, ENEA S.A. entered into agreement of Bond Issue Programme up to the amount of PLN 700 000 thousand with Bank Gospodarstwa Krajowego. According to the agreement, ENEA S.A. may carry out multiple bond issues. Interest will be payable semi-annually (in March and September) until the final redemption date. The bonds will be redeemed in installments after the end of the availability period. The final redemption date is planned for September 2027.
Lubelski Węgiel Bogdanka S.A.
The company has signed two bond issue programme agreements. Interest rate on bonds is floating. Programme Agreement No. 1 was signed with Bank Polska Kasa Opieki S.A. on 27 September 2013 (relates to PLN 300,000 thousand) and the final redemption date is 31 December 2018. Programme Agreement No. 2 was concluded with Bank Polska Kasa Opieki S.A. and Bank Gospodarstwa Krajowego on 30 June 2014 (relates to bonds up to PLN 600,000 thousand) and the final redemption date is 31 December 2020. As at reporting date unused limit amounts to PLN 200,000 thousand (the night to issue further bonds in the amount of PLN 200,000 thousand). The interest rate on the bonds is based on WIBOR 3M plus fixed margin.
During the 12-month period ended 31 December 2015 ENEA S.A. concluded interest rate swap transactions to hedge interest rate risk related to the debt of PLN 2 995 000 thousand. The transactions are connected with realization of an interest rate risk management policy adopted for ENEA Group companies. Concluded transactions will substantially affect the predictability of the cash relating flows of expenditure and financial costs. The valuation of these financial instruments is presented in “Derivatives”.
Financing conditions – covenants
Financing agreements assume compliance by the Company and the Group with certain financial ratios. As at 31 December 2015 and the date of these consolidated financial statements, the Group did not breach the regulations of loan agreements, on the basis of which the Group would be required to early repayment of long-term debt.