Among the collateral established and in force as at 31 December 2020 for the repayment of the Group’s liabilities, the most significant items, set out in the table below, are the collaterals for contracts entered into by the parent company.
Table 1Export to Excel
|Collateral||Collateral amount||Due date||Agreement/transaction|
|7 284 000||31.12.2025||Loan arrangement with a consortium of banks of 19 June 2019|
|2 550 000||20.12.2032||Long-term Bond Issue Scheme in Bank Gospodarstwa Krajowego of 31 July 2013|
|1 500 000||31.12.2036||Overdraft agreement with Bank Gospodarstwa Krajowego of 19 December 2018|
|900 000||31.12.2027||Credit agreements with Intesa Sanpaolo S.p.A. of 19 December 2019|
|621 000||31.10.2021||Bank guarantee agreement dated 28 January 2020 with MUFG Bank, Ltd.1|
|600 000||30.06.2034||Subordinated Bond Issue Scheme in Bank Gospodarstwa Krajowego of 6 September 2017|
|600 000||17.12.2021||Bank account agreement (intraday limit) with PKO Bank Polski S.A. of 9 October 2017 2|
|600 000||31.12.2028||Credit agreement with SMBC Bank EU AG of 16 March 2020|
|600 000||31.12.2030||Credit agreement with a consortium of banks of 25 March 2020|
|600 000||14.03.2023||Agreement concluded with BGK for bank guarantees in favour of Izba Rozliczeniowa Giełd Towarowych S.A. of 13 March 2020|
|600 000||31.03.2021||Membership agreement in the Exchange Clearing Chamber operated by Izba
Rozliczeniowa Giełd Towarowych S.A. 2
|360 000||29.12.2021||Overdraft agreement with PKO Bank Polski S.A. of 9 October 2017 2|
|300 000||24.04.2024||Agreement concluded with Santander Bank Polska S.A. for bank guarantees for the benefit of Izba Rozliczeniowa Giełd Towarowych S.A. of 24 April 2020|
|384 000||31.12.2027||Agreement concluded with Santander Bank Polska S.A. for intraday loan in the Intra Day auxiliary account of 8 December 2020|
|240 000||31.12.2023||Bond Issue Scheme of 24 November 2015 2|
|180 000||25.05.2024||Contingent agreement concluded with Intesa Sanpaolo S.p.A. Spółka Akcyjna Branch in Poland for bank guarantees for the benefit of Izba Rozliczeniowa Giełd Towarowych S.A. of 25 May 2020|
|EUR||24 000||110 755||31.12.2021||Overdraft agreement with Bank Gospodarstwa Krajowego of 30 December 2015|
|50 000||230 740|
|67 500||311 499||31.12.2022|
|96 000||27.05.2024||Framework bank guarantee agreements with CaixaBank S.A. of 27 May 2019|
|500 000||13.03.2022||Agreement concluded with BGK for bank guarantees in favour of Izba Rozliczeniowa Giełd Towarowych S.A. of 13 March 2020|
|300 000||22.02.2021||Bank account agreement (intraday limit) with PKO Bank Polski S.A. of 9 October 2017 2|
|300 000||Overdraft agreement with PKO Bank Polski S.A. of 9 October 2017 2|
|EUR||45 000||207 666||30.12.2021||Overdraft agreement with Bank Gospodarstwa Krajowego of 30 December 2015|
|80 000||26.05.2023||Framework bank guarantee agreements with CaixaBank S.A. of 27 May 2019|
|Bank guarantees||100 000||15.01.2021||Bank guarantees issued by Intesa Sanpaolo S.p.A. Spółka Akcyjna Oddział w Polsce, Santander Bank Polska S.A. and BGK to Izba Rozliczeniowa Giełd Towarowych S.A. as a collateral of transactions concluded on Power Commodity Exchange|
|10 000||30.06.2021||Bank guarantee issued by CaixaBank S.A. to PSE S.A. as performance security for the power transmission service agreement and to GAZ-SYSTEM S.A. as transmission contract performance security|
1 The security in the form of a declaration of submission to execution submitted to the Guarantee Limit Agreement dated 28 January 2020 relates to an addendum to the bank guarantee issued under the previous Guarantee Limit Agreement concluded with MUFG Bank, Ltd. in February 2019, which extended its term to 11 April 2021. The security in the form of a declaration of submission to execution submitted to the guarantee limit agreement concluded in February 2019 in the amount of PLN 621,000 thousand expired on 31 July 2020.
2 The security relates to an agreement for which, as at the balance sheet date, the liabilities expired, were repaid or replaced with others (in the case of the overdraft facility agreement with BGK of 30 December 2015, it concerns declarations of submission to enforcement in the amount of EUR 24,000 thousand and EUR 50,000 thousand).
After the balance sheet date:
- bank guarantees were issued to the IRGiT as security for the Company liabilities. As at the date of approval of these consolidated financial statements for publication, two guarantees in the total amount of PLN 80,000 thousand are in force, with expiry dates of 16 April and 18 June 2021;
- on 12 March 2021, an annex was signed to the agreement with Bank Gospodarstwa Krajowego for bank guarantees for IRGiT, on the basis of which a declaration of submission to enforcement was issued up to the amount of PLN 300,000 thousand, valid until 14 March 2024. The new declaration replaces the declaration on submission to enforcement up to the amount of PLN 600,000 thousand, valid until 14 March 2023.
Carrying amount of assets pledged as a collateral for the repayment of the Group’s liabilities
The carrying amounts of assets pledged as a collateral for the repayment of liabilities at each balance sheet date have been presented in the table below.
Carrying amount of assets pledged as a collateral for the repayment of the Group's liabilitiesExport to Excel
31 December 2020
31 December 2019
|Other financial receivables||48,663||184,353|
The main item consists of collaterals of forward transactions – derivative financial instruments concluded by the Company on foreign stock exchange markets. As at 31 December 2020 and 31 December 2019, the related collaterals amounted to PLN 48,663 thousand and PLN 184,353 thousand, respectively.
Transfer of CO2 emission allowances and property rights of certificates of origin
In 2019 and in February 2020, agreements for the transfer of CO2 emission allowances to the IRGiT were concluded between the Company and the IRGiT and between the Company, a subsidiary of TAURON Wytwarzanie S.A., and the IRGiT. As at 31 December 2020, CO2 emission allowances in the total amount of 3,021,799 tonnes were transferred to the IRGiT, including:
- the Company has deposited 2,205,000 tonnes of allowances held in the Union Registry account, and
- the subsidiary, TAURON Wytwarzanie S.A. transferred the allowances owned by TAURON Wytwarzanie S.A. to the IRGiT in the total amount of 816,799 tons.
After the balance sheet date, on 16 February 2021, all rights owned by the subsidiary were returned to the account of TAURON Wytwarzanie S.A. and no longer constitute the subject of the transfer of property. Additionally, on 17 March 2021, the portion of allowances in the amount of 1,660,000 tonnes were returned to the Company.
On 10 February 2020, two agreements of transfer of ownership as collateral concerning property rights to certificates of origin were concluded between the Company, the subsidiary TAURON Sprzedaż Sp. z o.o. and the IRGiT and between the Company, the subsidiary TAURON Sprzedaż GZE Sp. z o.o. and the IRGiT. As at 31 December 2020, pursuant to the agreements entered into, the subsidiaries submitted an instruction to block the property rights held in a total of 1 930 594.92 MWh in the Certificate of Origin Register maintained by the Polish Power Exchange. After the balance sheet date, on 18 January 2021, all property rights arising from certificates of origin were unblocked and are no longer the subject of the transfer of title.
Other collaterals for the repayment of liabilities of the Group and joint ventures
Other material collaterals for the repayment of the Group’s liabilities and joint ventures as at 31 December 2020 are described below.
Registered pledges and the financial pledge on shares of TAMEH HOLDING Sp. z o.o.
Under the agreement of 15 May 2015, the parent company established a financial pledge on its shares in the share capital of TAMEH HOLDING Sp. z o.o, with a total nominal value of PLN 329,340 thousand, representing approximately 50% of the shares in the share capital, a financial pledge, a registered pledge with highest priority of satisfaction on the shares up to the highest amount of security in the amount of CZK 3,950,000 thousand and a registered pledge with highest priority of satisfaction on the shares up to the highest level of security in the amount of PLN 1,370,000 thousand in favour of RAIFFEISEN BANK INTERNATIONAL AG. The Company also agreed to establish a financial pledge and registered pledges on the new shares. Moreover, the Company assigned the rights to dividend and other payments.
The agreement to establish registered pledges and a financial pledge was concluded to secure transactions including the agreement for term loans and working capital loans, entered into by TAMEH Group companies and RAIFFEISEN BANK INTERNATIONAL AG as the agent and the collateral agent. The registered pledges are valid in the collateral period, i.e. until the total repayment or until release of the pledge by the pledgee. The financial pledge is valid in the entire collateral period or until release by the pledgee, not later than on 31 December 2028.
As at 31 December 2020, the carrying amount of the investment in joint venture accounted for using the equity method in the TAMEH HOLDING Sp. z o.o. group was PLN 585,863 thousand.
Blank promissory notes
Table 3Export to Excel
|Agreement/transaction secured by blank promissory notes||Issuer of a blank promissory
|Agreements concerning loans granted to subsidiary TAURON Wytwarzanie S.A. and TAURON Ciepło Sp. z o.o. by Regional Fund for Environmental Protection and Water Management in Katowice. The companies have provided declarations of submission to enforcement as collateral for the loans in question.||TAURON Polska Energia S.A.||70,000*|
|Performance bonds under contracts and agreements concluded by the company, including cofunding of engagements being carried out.||TAURON Dystrybucja S.A||200,167|
|Performance bond and reimbursement security under the co-funding agreements concluded with the National Fund for Environmental Protection and Water Management in Warsaw and the Regional Fund for Environmental Protection and Water Management in Katowice||TAURON Ciepło Sp. z o.o.||109,851|
|Performance bonds under the co-funding agreements concluded with Centrum Projektów Polska Cyfrowa in Warsaw.||TAURON Obsługa Klienta
Sp. z o.o.
|An agreement with PSE S.A. to provide electricity supply services, an agreement with the National Fund for Environmental Protection and Water Management in Warsaw concerning partial cancellation of a loan and an agreement with the National Centre for Research and Development in Warsaw for the funding of a project.||TAURON Wytwarzanie S.A.||63,708|
*As at 31 December 2020, the outstanding amount under loans, secured with bills of exchange, amounts to PLN 8,000 thousand.
Corporate and bank guarantees
- Corporate guarantee granted by the Company
The corporate guarantee was granted in 2014 to secure the bonds (i.e. registered bonds) of Finanse Grupa TAURON Sp. z o.o. The guarantee is valid until 3 December 2029, i.e. the redemption date of the bonds, and amounts to EUR 168,000 thousand (PLN 775,286 thousand), and the beneficiaries of the guarantee are the private placement investors who purchased the issued bonds.
- Corporate guarantee granted in the Renewable Energy Sources segment
On 15 December 2020, TAURON Ekoenergia Sp. z o.o. granted a corporate guarantee for the liabilities of WIND T1 Sp. z o.o. to a third party up to EUR 24,600 thousand (PLN 113,524 thousand). The guarantee is valid until WIND T1 Sp. z o.o. performs all obligations under the agreement concluded. After the balance sheet date, on 20 January 2021, the value of the collateral was increased to EUR 30,258 thousand.
- Liability towards MUFG Bank, Ltd.
At the Company’s request, MUFG Bank, Ltd. issued a bank guarantee as security for the receivables of Bank Gospodarstwa Krajowego, resulting from the loan agreement concluded on 8 March 2018 between the borrower Elektrociepłownia Stalowa Wola S.A. and Bank Gospodarstwa Krajowego and Polskie Górnictwo Naftowe i Gazownictwo S.A.
As at the balance sheet date, the amount of security granted is PLN 517,500 thousand, with a term to 11 April 2021. The guarantee was issued on the basis of a guarantee limit agreement concluded in January 2020 with MUFG Bank, Ltd. and the collateral for MUFG Bank, Ltd.’s claims against the Company is a declaration on submission to execution up to the amount of PLN 621,000 thousand with the term of validity until 31 October 2021.
After the balance sheet date, on 2 February 2021, a guarantee limit agreement was concluded, under which an annex to a bank guarantee of up to PLN 517,500 thousand was issued, valid until 11 April 2022. The receivables of MUFG Bank, Ltd. towards the Company are secured by a declaration of submission to enforcement up to the amount of PLN 621,000 thousand, valid until 31 October 2022.
In connection with the guarantee issued, the Company recognised a liability in the amount of expected credit losses, which at 31 December 2020 amounted to PLN 28,184 thousand (PLN 15,265 thousand as at 31 December 2019).
In order to secure funds to cover future decommissioning costs, the Group’s subsidiaries TAURON Wydobycie S.A. and Kopalnia Wapienia Czatkowice Sp. z o.o. create the Mine Decommissioning Fund.