No changes in respect of the issue volume were made in the domestic bond issue program established in September 2012, in which Energa SA conducted the first bond issue of PLN 1,000 m. As part of the actions continued in 2017, the subsidiary Energa-Operator SA purchased on the secondary market another bundle of a total of 27,157 Energa SA bonds with a total par value of PLN 271.57 m. As at 31 December 2017, Energa-Operator SA held the bundle of a total of 82,969 Energa SA bonds with a total par value of PLN 829.69 m.
In Q1 2017, a subsidiary Energa Finance AB (publ) carried out a public subscription for the Eurobonds issued under the updated EMTN Program (the bookbuilding process was closed on 1 March 2017). It was EUR 300 m bond issue with the issue price of 98.892% and 10-year maturity. The 2.125% cou-pon will be payable annually, starting from March 2018, and, after the discount rate is taken into ac-count, the yield for bondholders is 2.25%. The Eurobonds are listed on the Luxembourg stock ex-change. The final settlement of the transaction was effected on 7 March 2017. Energa SA acts as the guarantor of the issue. The funds raised through the bond issue will be applied to general corporate purposes, excluding investments in coal assets.
On 4 September 2017, Energa SA and the European Investment Bank entered into the following agreements: (i) subscription agreement, constituting the basis for issuing EUR 250 m hybrid bonds, and (ii) project agreement, defining detailed financing requirements of the investment project.
In accordance with the Subscription Agreement, the Bonds were issued in two tranches with the total nominal value of:
(i) EUR 125 million, maturing in 16 years, with the first financing period set for 6 years from the issue date,
(ii) EUR 125 million, maturing in 20 years, with the first financing period set for 10 years from the issue date.
The Bonds earn interest at a fixed interest rate estimated according to the formula defined in the terms and conditions of issue.