Loans and borrowings as at 31 December 2020
Export to Excel| Currency | Interest rate |
Value of loans and borrowings as at the balance sheet date |
of which maturing within (after the balance sheet date): | ||||||
|---|---|---|---|---|---|---|---|---|---|
| currency | PLN | less than 3 months |
3-12 months | 1-2 years | 2-3 years | 3-5 years | over 5 years | ||
| PLN | floating | 4,942,213 | 4,942,213 | 1,021,891 | 3,222 | 2,007,473 | 2,191 | 1,109,192 | 798,244 |
| fixed | 1,035,830 | 1,035,830 | 34,694 | 123,390 | 108,673 | 108,673 | 616,735 | 43,665 | |
| Total PLN | 5,978,043 | 5,978,043 | 1,056,585 | 126,612 | 2,116,146 | 110,864 | 1,725,927 | 841,909 | |
| EUR | floating | 487 | 2,249 | 2,249 | – | – | – | – | – |
| Total EUR | 487 | 2,249 | 2,249 | – | – | – | – | – | |
| Total | 5,980,292 | 1,058,834 | 126,612 | 2,116,146 | 110,864 | 1,725,927 | 841,909 | ||
| Interest increasing carrying amount | 11,841 | ||||||||
| Total | 5,992,133 | ||||||||
Loans and borrowings as at 31 December 2019
Export to Excel| Currency | Interest rate |
Value of loans and borrowings as at the balance sheet date |
of which maturing within (after the balance sheet date): | ||||||
|---|---|---|---|---|---|---|---|---|---|
| currency | PLN | less than 3 months |
3-12 months | 1-2 years | 2-3 years | 3-5 years | over 5 years | ||
| PLN | zmienna | 6,313,602 | 6,313,602 | 1,617,085 | 503,014 | 4,135 | 3,191,792 | 99,806 | 897,770 |
| stała | 690,834 | 690,834 | 34,590 | 122,114 | 156,704 | 108,082 | 196,712 | 72,632 | |
| Total PLN | 7,004,436 | 7,004,436 | 1,651,675 | 625,128 | 160,839 | 3,299,874 | 296,518 | 970,402 | |
| EUR | zmienna | 5,304 | 22,585 | 22,585 | – | – | – | – | – |
| Total EUR | 5,304 | 22,585 | 22,585 | – | – | – | – | – | |
| USD | zmienna | 198 | 754 | 754 | – | – | – | – | – |
| Total USD | 198 | 754 | 754 | – | – | – | – | – | |
| Total | 7,027,775 | 1,675,014 | 625,128 | 160,839 | 3,299,874 | 296,518 | 970,402 | ||
| Interest increasing carrying amount | 22,876 | ||||||||
| Total | 7,050,651 | ||||||||
Main liabilities due to loans and borrowings are shown in the table below.
Export to Excel| Loans/ borrowings |
Borrowing institution | Purpose | Interest rate | Maturity date | As at 31 December 2020 |
As at 31 December 2019 |
|---|---|---|---|---|---|---|
| Loans | Consortium of banks I 1 | Redemption of bonds, investment expenditures and general expenses of the Group |
Floating | 28.06.20203 | – | 1,839,159 |
| 02.09.20203 | – | 151,376 | ||||
| 10.09.20203 | – | 302,555 | ||||
| 01.10.20203 | – | 604,070 | ||||
| 14.10.20203 | – | 301,714 | ||||
| 31.01.2020 | – | 502,358 | ||||
| 30.04.2020 | – | 502,330 | ||||
| 28.02.2020 | – | 501,195 | ||||
| 13.01.2020 | – | 600,868 | ||||
| 14.04.20213 | 601,673 | – | ||||
| 30.04.20213 | 200,429 | – | ||||
| 29.06.20213 | 1,099,541 | – | ||||
| 10.09.20213 | 100,366 | – | ||||
| 25.01.2021 | 300,100 | – | ||||
| 28.01.2021 | 600,089 | – | ||||
| 29.01.2021 | 100,007 | – | ||||
| Loans | Bank Gospodarstwa Krajowego |
Group’s capital expenditures and refinancing of a portion of debt |
Floating | 20.12.2033 | 998,232 | 998,458 |
| Loans | European Investment Bank | Construction of a boiler fired with biomass at Jaworzno III Power Plant and renovation of a steam turbine |
Fixed | 15.12.2021 | 20,354 | 40,047 |
| Construction and start-up of a cogeneration unit at EC Bielsko Biała |
Fixed | 15.12.2021 | 29,105 | 57,294 | ||
| Modernization and extension of power grid |
Fixed | 15.06.2024 | 137,682 | 175,298 | ||
| Fixed | 15.09.2024 | 72,151 | 89,820 | |||
| Fixed | 15.09.2024 | 90,440 | 112,661 | |||
| Modernization and extension of power grid and improvement of hydropower plants |
Fixed | 15.03.2027 | 190,532 | 219,415 | ||
| Loans | Intesa Sanpaolo S.p.A. | Group’s investment expenditure, except for financing or refinancing projects related to coal assets |
Floating | 19.12.2024 | 250,832 | – |
| 250,758 | – | |||||
| 250,526 | – | |||||
| Loans | SMBC BANK EU AG | Group’s general corporate expenses, excluding financing and refinancing of coal-fired power plants |
Fixed | 23.03.2025 | 498,860 | – |
| Loans | Consortium of banks II2 | Group’s general corporate expenses, excluding financing of any new coalassets-related projects |
Floating | 10.03.20213 | 160,610 | – |
| Overdraft facility |
Bank Gospodarstwa Krajowego |
financing of CO2 emission allowance, electricity and gas transactions on european stock exchanges |
Floating | 30.12.2021 | – | 20,456 |
| Borrowings | Regional Fund for Environmental Protection and Water Management |
Construction of renewable power unit at Jaworzno III Power Plant |
Floating | 15.12.2022 | 8,000 | 12,000 |
| Borrowings | Regional Fund for Environmental Protection and Water Management |
Construction of the photovoltaic farm | Floating | 30.11.2025 | 8,547 | – |
| Other loans and borrowings | 23,299 | 19,577 | ||||
| Total | 5,992,133 | 7,050,651 |
1 Consortium of banks I consists of Bank Handlowy w Warszawie S.A., Santander Bank Polska S.A., CaixaBank S.A. (Joint Stock Company) Branch in Poland, Industrial and Commercial Bank of China (Europe) S.A. Branch in Poland, ING Bank Śląski S.A., mBank S.A., MUFG Bank (Europe) N.V., MUFG Bank (Europe) N.V. S.A. Branch in Poland and Powszechna Kasa Oszczędności Bank Polski S.A.
2 Consortium of banks II consists of: Intesa Sanpaolo S.p.A. acting through Intesa Sanpaolo S.p.A. S.A. Branch in Poland and China Construction Bank (Europe) S.A. acting through China Construction Bank (Europe) S.A. (Joint Stock Company) Branch in Poland.
3 Tranche classified as a long-term liability
Pursuant to the provisions of the loan agreement of 19 June 2019 concluded with the bank consortium (Consortium of banks I), the maximum period for drawing individual loan tranches is 12 months. However, the financing available under the agreement is renewable and the deadline for its availability is end 2022. Due to the intention and ability to maintain financing under the said agreement for a period exceeding 12 months from the balance sheet date tranches with the total nominal value of PLN 2,000,000 thousand are presented as a non-current liability as at the balance sheet date. Tranches with a total nominal value of PLN 1,000,000 thousand are classified as current liabilities as at 31 December 2020.
Likewise, the syndicated loan taken out under the agreement of 25 March 2020 (Consortium of Banks II) is of revolving nature. The Company may raise financing against available financing with a selected interest period. Under the agreement, the repayment occurs at the end of the interest period, whereas the Company has the option to re-borrow.
Due to the intention and ability to maintain financing under the said agreement for a period exceeding 12 months from the balance sheet date, the drawdown used is classified as a non-current liability as of the balance sheet date.
Loan Agreement with SMBC BANK EU AG
On 16 March 2020, TAURON Polska Energia S.A. concluded a loan agreement with SMBC BANK EU AG for the amount of PLN 500,000 thousand; the funds are earmarked for the financing of the Group’s general corporate purposes, excluding the construction, acquisition, expansion of coal-fired power plants and refinancing of any financial liabilities contracted or expenses incurred for such purposes. On 23 March 2020, the Company drew down funds under the said agreement in the amount of PLN 500,000 thousand.
Syndicated loan agreement (Consortium of banks II)
On 25 March 2020, TAURON Polska Energia S.A. concluded a syndicated loan agreement for PLN 500,000 thousand with Banca IMI S.p.A., London Branch, Banca IMI S.p.A., Intesa Sanpaolo S.p.A. acting through Intesa Sanpaolo S.p.A. S.A. Branch in Poland and China Construction Bank (Europe) S.A. acting through China Construction Bank (Europe) S.A. (Joint Stock Company) Branch in Poland, The funds of the loan agreement are intended to finance general corporate purposes of the Company and the TAURON Group, excluding the financing of any new projects related to coal assets.
Pursuant to the loan agreement, the financing period is 5 years from the date of conclusion of the loan agreement with a possibility of two one-year extensions, i.e. up to a maximum of 7 years. The interest rate is calculated on the basis of a variable WIBOR interest rate, appropriate to the interest period in question, plus a margin which depends, among others, on the extent to which the loan is used and the fulfilment of pro-ecological contractual conditions, i.e. reduction of emissions and increasing the share of renewable energy sources in the TAURON Group’s generation structure.
On 10 September 2020, the Company drew down funds under the said agreement in the amount of PLN 160,000 thousand.
Changes in the balance of loans and borrowings, excluding interest increasing their carrying amount:
Export to Excel| Year ended 31 December 2020 |
Year ended 31 December 2019 |
|
|---|---|---|
| Opening balance | 7,027,775 | 881,582 |
| Movement in bank overdrafts and cash pool loans received | (16,417) | 21,453 |
| Movement in other loans and borrowings: | (1,031,066) | 6,124,740 |
| Repaid | (9,456,813) | (1,367,360) |
| Taken* | 8,412,255 | 5,646,173 |
| Replacing bond issue scheme with loan arrangement* | – | 1,837,822 |
| Change in valuation | 13,492 | 8,105 |
| Closing balance | 5,980,292 | 7,027,775 |
In the year ended 31 December 2020, the Group carried out the following transactions relating to bank loans and borrowings (at a nominal value), excluding overdraft facilities:
Export to Excel| Lender | Description | Year ended 31 December 2020 | |
|---|---|---|---|
| Drawdown | Repayment | ||
| Consortium of banks I | Drawdown of new tranches and repayment of tranches according to credit agreement deadline |
7,000,000 | (9,289,600) |
| Intesa Sanpaolo S.p.A. | Drawdown of 3 tranches of PLN 250 000 thousand each (total available financing) |
750,000 | |
| SMBC BANK EU AG | Drawdown of total of available financing | 500,000 | |
| Consortium of banks II | First tranche draw down | 160,000 | |
| European Investment Bank | Repayment of capital instalments according to schedule | (162,318) | |
| Other borrowings | 8,546 | (4,895) | |
| Total, including: | 8,418,546 | (9,456,813) | |
| Cash flows | 3,368,546 | (4,406,813) | |
| Net settlement (without cash flow) | 5,050,000 | (5,050,000) | |
After the balance sheet date, under the agreement of 19 June 2019 (Consortium of banks I), the Company has drawn tranches with an aggregate nominal value of PLN 1,750,000 thousand and repaid tranches in accordance with the repayment schedule in the aggregate amount of PLN 2,300 000 thousand.
Overdrafts
As at 31 December 2020, the balance of overdrafts amounted to PLN 2,261 thousand (as at 31 December 2019 – to PLN 23,339 thousand).