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PKN Orlen SAUPDATE: Energa Operator has agreement with Poland's development bank for up to PLN 7.66 bln loan
Energa Operator, the unit of Poland's largest energy concern Orlen's subsidiary Energa, has signed with Poland's state development bank BGK a loan agreement for more than PLN 7.66 billion (EUR 1.84 bln) of EU funds under the national recovery plan KPO, providing support for the development of smart power grids by the company in 2022-2036, Energa announced in a market filing.
"The object of the agreement is for the company to incur a long-term liability up to the amount of PLN 7,661,757,198.22 in order to refinance qualified expenditures incurred by the company for the implementation of the project," Energa wrote in the market filing.
It added that according to the terms of the agreement, the amount of the loan may be increased, while, obviously, the conclusion of an appropriate annex to the agreement is required.
Energa reported that the funds disbursed under the agreement will bear fixed interest rate of 0.5 percent per annum.
The company is obliged to repay the loan within 300 months from the date of signing the agreement.
In a press release, Orlen said that the funds will be used for a programme to modernise and digitise the power grid in northern and central Poland, which involves connecting new renewable sources to the grid along with energy storage facilities.
The value of the entire programme until 2035 is PLN 40 billion (EUR 9.62 bln). Among other things, it assumes the construction of over 11,000 kilometres of new power lines and 7,000 kilometres of cable lines and the modernisation of nearly 10,000 kilometres of existing lines.
As part of the programme, it is planned to connect around 350,000 new electricity consumers and 1,600 public charging stations for vehicles, including along the A1 highway and S7 expressway.
As Energa's CEO Slawomir Staszak said, Energa Operator is preparing to modernise and expand its network on an unprecedented scale. According to him, the funds the company has managed to obtain from KPO provide 20 percent of the financing for the entire 10-year development plan.
Energa Operator raised the funds from Poland's national recovery plan KPO in the form of a low-interest BGK loan. Previously, the company also obtained PLN 3.5 billion (EUR 841.75 mln) in preferential financing for its grid modernisation programme from the European Investment Bank.
pr/ doa/ ao/
