GAZ-SYSTEM S.A. organizes the financing of new investments
Gas Transmission Operator GAZ-SYSTEM S.A. signed an agreement with the banks to finance strategic investments made by the company. The financing will be based on a bond issue of PLN 1.7 billion underwritten by four banks. The agreement signed on 25 April 2014 amends the agreement concluded in March 2011, which has not been performed to date by GAZ-SYSTEM S.A. The company effectively used the financing from the investment programme with EU funds and European financial institutions (European Investment Bank, European Bank for Reconstruction and Development) and there was no need to conduct a bond issue under the agreement of 2011. According to the current agreement, the bond issue programme will be in force until 20 December 2017. GAZ-SYSTEM S.A. will still issue bonds for a value of PLN 300 million in 2014. The banks underwriting the bond issue are mBANK S.A., BANK POLSKA KASA OPIEKI S.A., ING BANK ŚLĄSKI S.A. and NORDEA BANK POLSKA S.A. Investment Programme 2009-2014 The implementation of the investment programme in 2009-2014 involves the expansion of the transmission network in North-Western and Central Poland by more than 1,000 km of transmission pipelines. These investments are financed with the company’s own funds, non-refundable grants from EU funds and European financial institutions. The capital expenditure on the construction of new gas pipelines will amount to approximately PLN 4.5 billion in 2009-2014, of which PLN 1.3 billion is co-financing from EU funds. In addition, GAZ-SYSTEM S.A. is financing the construction of the LNG terminal in Świnoujście by the Polish subsidiary, LNG S.A. GAZ-SYSTEM S.A. will allocate approx. PLN 2 billion to this in 2009-2014. Investment Programme 2014-2023 The next stage of development of the Polish transmission system will be the construction of new gas pipelines within the framework of the North-South Gas Corridor, which is supported by the European Union and which will enable the full integration of the transmission infrastructure in this part of Europe. GAZ-SYSTEM S.A. plans to build a total of approximately 2000 km of new gas pipelines in the western, southern and eastern parts of Poland for this purpose in 2014-2023. The construction of new gas connections with the countries of the European Union (e.g. Poland-Czech Republic, Poland-Slovakia, Poland-Lithuania) is also planned in this timeframe. The agreement signed today with the banks will enable the financing of selected projects within the framework of the North-South Gas Corridor.
