Financing secured for construction of strategic gas pipelines in Poland
On 9 March 2011, the Gas Transmission Operator GAZ-SYSTEM S.A. signed an agreement for financing of strategic investments realised by the Company.
The financing institutions are: BRE Bank S.A., Nordea Bank Polska S.A., ING Bank Śląski S.A., Bank Millennium S.A. and Bank Pekao S.A.
The financing will consist of the issuance of bonds by GAZ-SYSTEM S.A. in the amount of 1.7 bn PLN that will be taken up by commercial banks in seven tranches in the period from 1 July 2011 until 20 December 2014.
The bond issue programme will enable the Company to finance the realisation of strategic projects that will improve the energy security in Poland, among others, by building the national transmission system. It is a very flexible programme streamlined to the needs of the Company. “Our priority is to build over 1,000 km of gas pipelines by 2014. The most important ones will be constructed in northwestern and central Poland (Szczecin-Lwówek, Świnoujście-Szczecin, Szczecin-Gdańsk, Włocławek-Gdynia, Rembelszczyzna-Gustorzyn, and Gustorzyn-Odolanów) as well as in Lower Silesia," Jan Chadam, President of the Management Board of GAZ-SYSTEM S.A. explained.
GAZ-SYSTEM S.A. is facing a large investment project of strategic significance for the country. "It gives us great pleasure that BRE Bank can contribute to the fulfilment of this important task as one of the leaders of the consortium taking up the Company's bonds," Dariusz Kacprzyk, Director of the Corporation Cooperation Department in BRE Bank commented. "We have the right experience and resources to successfully undertake such endeavours," he added.
“It is greatly satisfying to have Nordea Bank Polska participate in the financing of
GAZ-SYSTEM S.A. We have decided to get involved in gas sector projects as they are an important part of the energy sector, which we perceive as being safe and very promising. Our part in the financing is conclusive evidence of Nordea's strategic approach to the Polish financial market. We have been observing increasing interest in the issue of bonds on the part of the largest Polish enterprises since the start of 2010. Nordea Bank, apart from the traditional credit formula, is very open to participate in and organise the issue of bonds for enterprises. Last year alone, we managed to significantly increase our market share and at present, according to Fitch Ratings, we hold second place. We are most pleased that thanks to the signed agreement we will be able to support the modernisation and development of the gas transmission network, which is such an important element of Poland's economic infrastructure," Sławomir Żygowski, 1st Vice President of the Management Board of Nordea Bank Polska S.A. commented.
“We would like to express our great satisfaction what with Millennium Bank's participation in the financing of this strategic part of the Polish energy sector. We appreciate the significance of the undertaken project for the improvement of the efficiency of the national transmission network, which is why we have decided to join the group of financing institutions for the project fulfilled by GAZ-SYSTEM S.A.,” Andrzej Gliński, Member of the Management Board of Millennium Bank, asserted.
“We are happy that the talks about obtaining financing for our long-time partner GAZ-SYSTEM S.A. have been finalised. We are confident that this will facilitate the development of the ever so significant energy infrastructure for our country. Our share in the bond programme is yet another step towards the fulfilment of the Bank Pekao S.A. strategy of supporting infrastructural investments in the country and is the result of the strategic involvement of the Bank in the Polish oil and energy sector. We are expecting a significant number of vital investments in this sector over the next two years which we are prepared to finance,” Andrzej Kopyrski, Vice President of the Management Board of Bank Pekao S.A. responsible for the Corporate Banking & MIB Division, stated.
"I would like to express my gratitude to the GAZ-SYSTEM S.A. Company for their vote of trust in our bank and for including ING in the group of banks financing such a strategic investment as that of the development of the gas transmission network in Poland. The GAZ-SYSTEM S.A. programme is yet another bond issue strategic programme in which ING is partaking. Our participation in this endeavour is a sign of our high esteem and recognition for the greatest enterprises in our experience and work performed by us,” Konrad Miterski, Director of the Strategic Client Department in ING Bank Śląski S.A. said.
The agreement concluded with five commercial banks will be one of the main sources of financing for the GAZ-SYSTEM S.A. investment apart from funds from the Company's own activity in the years 2011- 2014, as well as European Union grants (e.g. within OPI&E and EEPR) as well as a planned investment credit from the European Investment Bank.
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The Gas Transmission Operator GAZ-SYSTEM S.A. is a strategic, wholly-owned State Treasury Company responsible for the transmission of natural gas throughout Poland. The Company manages assets worth in excess of 5 bn PLN comprised mainly of elements of the transmission system, e.g. more than 9.7 thousand km of high pressure pipelines, 14 compressor stations, 56 hubs and 970 exit points. The Company employs over 2,000 people.
GAZ-SYSTEM S.A. is also the owner of the LNG S.A. Company which was appointed to construct and operate the liquefied natural gas terminal (LNG) in Świnoujście.
Furthermore, GAZ-SYSTEM S.A. is carrying out the construction of the new Poland-Czech Republic interconnector, the start-up of which will take place as soon as in 2011. The Company is also developing, by the end of 2011, the connection in Lasów on the Polish-German border, which will facilitate increased gas imports from the western direction.
The investment programme of GAZ-SYSTEM S.A. is a part of the fulfilment of the European Union strategy for the development of an integrated transmission system in this part of Europe. The Polish transmission system will constitute a significant element of the so-called North - South Gas Corridor, the fulfilment of which is being actively supported by the European Union. It involves the connection of the LNG terminal in Świnoujście, which is currently under construction, through southern Poland, the Czech Republic, Slovakia, and Hungary, with the proposed Adria LNG terminal in Croatia and possibly with the Nabucco gas pipeline. The project will enable the integration of the regional gas markets and increase gas supply security by providing access to its new sources in the north and south of Europe. Gas transmission through the North - South Gas Corridor will also be possible thanks to the development of the Polish gas pipeline system.
Contact:
GAZ-SYSTEM S.A.
Małgorzata Polkowska, Spokesperson
tel. (22) 22-01-546, 691-911-217
pr@gaz-system.pl
BRE Bank S.A.
Piotr Rutkowski, Spokesperson
tel. (22) 829 07 29
piotr.rutkowski@brebank.pl Bank Polska S.A.
Joanna Krawczyk-Golba, External Communications Coordinator
tel. (58) 669 12 36
joanna.krawczyk@nordea.com Bank Śląski S.A.
Piotr Utrata, Spokesperson
tel. (22) 820 40 22
piotr.utrata@ingbank.pl Millennium S.A.
Wojciech S. Kaczorowski, Spokesperson
tel. (22) 598 10 70
wojciech.kaczorowski@bankmillennium.pl
Bank Pekao S.A.
Mirosław Kuk, Vice Spokesperson
tel. (22)524 54 44
miroslaw.kuk@pekao.com.pl
Nordea
ING
Bank
