|Bank loans||1 561 382||1 529 220|
|Borrowings||48 594||35 433|
|Bonds||4 665 668||4 368 707|
|Long-term||6 275 644||5 933 360|
|Bank loans||72 586||5 342|
|Borrowings||10 797||9 583|
|Bonds||365 519||28 474|
|Short-term||448 902||43 399|
|Total||6 724 546||5 976 759|
Loans and borrowings
The loans and borrowings of the Enea Group are as follows:
|No.||Entity||Lender||Date of agreement||Total amount||Outstanding as at 31.12.2016||Outstanding as at 31.12.2015||The term of agreement|
|1.||Enea S.A.||EBI||18 October 2012 and 19 June 2013 (A and B)||1 425 000||1 425 000||1 425 000||31 December 2030|
|2.||Enea S.A.||EBI||29 May 2015 (C)||946 000||200 000||100 000||31 March 2032|
|3.||Enea S.A.||PKO BP||28 January 2014||300 000||-||-||27 January 2017|
|4.||Enea S.A.||Pekao S.A.||28 January 2014||300 000||-||-||27 January 2017|
|5.||Enea Wytwarzanie Sp. z o.o.||NFOŚiGW||6 June 2012||17 850||8 269||12 972||30 September 2018|
|6.||Enea Wytwarzanie Sp. z o.o.||NFOŚiGW||22 December 2015||60 075||19 106||-||20 December 2026|
|7.||LWB||mBank||21 May 2014||100 000||-||-||30 November 2018|
|8.||Other||-||-||-||42 563||44 409||-|
|TOTAL||3 148 925||1 694 938||1 582 381|
|Transaction costs and the valuation effect according to the effective interest rate||(1 579)||(2 803)|
|TOTAL||3 148 925||1 693 359||1 579 578|
A brief description of significant loan agreements and borrowings of Enea Group is presented below:
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 C for 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 and B are fully utilized. The availability period for Agreement C expired is March 2017. Enea S.A. obtained the consent of the EIB to extend the availability period till the end of 2017. Interest rate on loans can be fixed or floating.
In January 2016 Enea S.A. has drawn second tranche from EIB 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. Tranche will be repaid in installments, and the final loan repayment is planned for September 2030.
In January 2017 Enea S.A. has drawn third tranche from EIB under agreement C in the amount of PLN 250 000 thousand. The loan is denominated in PLN, with a floating rate based on WIBOR 6-month plus the banks’s margin. Tranche will be repaid in equal installments, and the final loan repayment is planned for December 2031.
Enea Wytwarzanie Sp. z o.o.
Investment loan from NFOŚiGW - the loan agreement concluded with NFOŚiGW on 6 June 2012 for the period from 1 October 2013 to 30 September 2018. The amount of used loan is PLN 17 850 thousand. The annual interest rate of the loan is WIBOR 3M+50 bps.
Investment loan from NFOŚiGW - the loan agreement concluded with NFOŚiGW on 22 December 2015 for the period from 1 April 2016 to 20 December 2026 with limit of PLN 60 075 thousand. The amount of used loan bears interest rate on the basis of WIBOR 3M - but not less than 2% per annum. The grace period ends on 29 September 2018.
The total loans of Enea Wytwarzanie Sp. z o.o. at 31 December 2016 amount to PLN 27 375 thousand (31 December 2016: PLN 12 972 thousand).
Lubelski Węgiel Bogdanka S.A.
On 16 December 2016 the company concluded with mBank loan agreement in the current account up to the amount of PLN 100 000 thousand. It bears interest at a variable rate. The maturity date is on 30 November 2018. As at the reporting date the company did not use the limit.
Enea S.A. concludes agreements for the bond issue programmes to finance current operations and investments needs of Enea S.A. and its subsidiaries.
The summary of the bonds issued by Enea S.A. and Lubelski Węgiel Bogdanka S.A. is presented below:
|No.||Name of bonds issue programme||Date of the conclusion of programme||Amount of the programme *||Amount issued as at 31.12.2016||Amount issued as at 31.12.2015||Redemption date|
|1.||Bonds Issue Programme Agreement with PKO BP S.A., Bank Pekao S.A., BZ WBK S.A. and Bank Handlowy w Warszawie S.A (Enea S.A.)||21 June 2012||3 0000 0000||1 951 000||1 201 000||Redemption from June 2020 till June 2022.|
|2.||Bonds Issue Programme Agreement with Bank Gospodarstwa Krajowego (Enea S.A.)||15 May 2014||1 000 000||1 000 000||1 000 000||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. (Enea S.A.)||30 June 2014||5 000 000||1 500 000||1 500 000||Redemption of a given series in February 2020 and September 2021.|
|4.||Bonds Issue Programme Agreement with Bank Gospodarstwa Krajowego(Enea S.A.)||3 December 2015||700 000||-||-||Redemption in installments, final maturity in September 2027.|
|5.||Bonds Issue Programme Agreement with Bank PEKAO S.A. (LWB)||23 September 2013||300 000||300 041||300 040||Redemption in installments, final maturity in December 2018.|
|6.||Bonds Issue Programme Agreement with Bank PEKAO S.A. and Bank Gospodarstwa Krajowego (LWB)||30 June 2014||300 000||300 039||400 052||Redemption in March 2017.|
|TOTAL||10 3000 0000||5 051 080||4 401 092|
|Transaction costs and the valuation effect according to the effective interest rate||(19 893)||(3 911)|
|TOTAL||10 3000 0000||5 031 187||4 397 181|
* According to the terms of agreement effective as at 31 December 2016.
During the 12 months ended 31 December 2016 Enea S.A. did not amend the program agreements, and did not enter into new agreements.
Bonds Issue Programme Agreement up to PLN 3 000 000 thousand
Enea S.A. issued bonds of VI series of PLN 300 000 thousand on 19 May 2016, bonds of VII series of PLN 150 000 thousand on 19 August 2016 and bonds of VIII series of PLN 300 000 thousand on 12 December 2016. The interest of the bonds is based on a variable interest rate, and the bonds redemption date is 15 June 2022.
Lubelski Węgiel Bogdanka S.A. - financial obligations arising from bonds issued by LWB concern two programme agreements. Under the first Programme Agreement, concluded by the company on 23 September 2013 with Bank Polska Kasa Opieki S.A., 3 000 bonds of total value of PLN 300 000 thousand with maturity till 31 December 2018 were issued. The maturity date of the portion of the bonds worth PLN 75 000 thousand is 30 March 2018, the maturity date of another portion of the bonds worth PLN 75 000 thousand is 30 June 2018, the maturity date of another portion of the bonds worth PLN 75 000 thousand is 30 September 2018 and the maturity date of the remaining bonds worth PLN 75 000 thousand is 30 December 2018. Bonds interest rate is based on WIBOR 3M increased by fixed margin.
Under the second Programme Agreement concluded by LWB on 30 June 2014 with Bank Polska Kasa Opieki S.A. and with Bank Gospodarstwa Krajowego, 400 bonds worth PLN 400 000 thousand with maturity on 30 June 2016 were initially issued. According to the issue programme, the company is entitled to issue another bond series as part of a particular tranche for the purpose of refinancing of the previous issue of a particular tranche (rollover), which substantiates long-term nature of bonds issue Programme. 30 June 2016 was a maturity date of two series of bonds issued as part of a particular tranche on 30 June 2015 and worth PLN 400 000 thousand. In order to refinance the issue of the bonds with maturity date on 30 June 2016, the company issued in total 300 registered bonds of new series as part of Tranche 1, which are worth PLN 300 000 thousand. The maturity date of the new series of bonds is 30 June 2017. Moreover, on the same date LWB redeemed remaining 100 bonds worth PLN 100 000 thousand. In March 2017 the annexe to the Programme Agreement concluded on 30 June 2014 was signed by LWB, according to which the end of the Term of the Programme for Tranche No. 1 was amended from 31 December 2019 to 30 March 2017. Therefore, all bonds issued under Tranche No. 1 in the total amount of PLN 300 000 thousand will be redeemed on 30 March 2017.
Transactions hedging interest rate risk
During the 12-month period ended 31 December 2016 Enea S.A. concluded interest rate swap transactions to hedge interest rate risk related to the debt (loans and bond issues) of PLN 1 440 000 thousand. As at 31 December 2016 the total value of IRS transactions amounted to of PLN 4 435 000 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 cash flows and financial costs. The valuation of these financial instruments is presented in “Derivatives”.
As at 31 December 2016 the valuation of derivatives amounted to PLN 40 267 thousand (on 31 December 2015 of PLN 844 thousand).
Financing conditions – covenants
Financing agreements assume compliance by the Company and the Group with certain financial ratios. As at 31 December 2016 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.