| 31.12.2014 | 31.12.2013 | |
|---|---|---|
| Bank Loans | 1 073 203 | 794 773 |
| Borrowings | 31 484 | 25 136 |
| Bonds | 1 104 961 | - |
| Long-term | 2 209 648 | 819 909 |
| Bank Loans | 4 489 | 19 363 |
| Borrowings | 4 386 | 3 285 |
| Short-term | 8 875 | 22 648 |
| Total | 2 218 523 | 842 557 |
Loans and borrowings
A brief description of significant loan agreements and borrowings of the Enea Group is presented below:
Enea SA – On 18 October 2012 Enea SA (Debtor) entered into a Financial Agreement (Agreement) with European Investment Bank (Bank) for a loan amounting to PLN 950,000 thousand (nine hundred fifty million zlotych), or its equivalent in Euro currency. On 19 June 2013 Enea SA (Debtor) entered into a Financial Agreement B (Agreement) with European Investment Bank (Bank) for a loan amounting to PLN 475,000 thousand, or its equivalent in Euro currency. Therefore the total amount of financing granted by the Bank over the last twelve months amounted to PLN 1,425,000 thousand.
The funds will be designated for financing of long-term investment plan (Programme) for the modernization and extension of power grids of Enea Operator sp. z o.o located in north - western Poland. The total amount of the Programme is estimated at approximately PLN 3,275.87 million.
The loan should be repaid after maximum of 15 years from the scheduled date of the loan drawing. The loan availability period expires on 31 December 2015 (availability period was extended under the Annex to the Agreement concluded on 12 August 2014). The interest rate of the loan can be fixed or floating.
Additionally, on 19 June 2013 Enea SA and Enea Operator sp. z o.o. signed an Annex to the Agreement on the Programme of 18 October 2012, which settled realization rules for the part of the Programme financed by the Bank. The Annex updated rules of the Programme realization due to the increased level of financing by the Bank.
Under the agreements with European Investment Bank Enea SA made drawings in three tranches in the total amount of PLN 1,050 million. The currency of the loan is the Polish zloty. Two tranches in the total amount of PLN 950 million are at variable interest rate based on WIBOR rate for 6-month deposits plus a margin and one tranche of PLN 100 million is at fixed interest rate.
Enea Wytwarzanie sp. z o.o. – during 2014 Enea Wytwarzanie sp. z oo, repaid loans in the total amount of PLN 18,336 thousand, including investment loan in the Nordic Investment Bank PLN 15,666 thousand and investment loan PKO BP SA PLN 2,678 thousand, movements in loans from the NFOŚiGW in the amount of PLN 1,992 thousand includes repayments in the amount of PLN 576 thousand new drawings in the amount of PLN 2,678 and accrued interest in the amount of PLN 110 thousand.
Miejskie Przedsiębiorstwo Energetyki Cieplnej w Białymstoku sp. z o.o. – investment loan for the period from 1 August 2012 till 30 June 2022 - loan in the amount of PLN 7,818 thousand, secured with promissory note issued by the borrower with a declaration and statement of execution from the bill. The creditor is PKO BP SA
Investment loan for the period from 12 November 2013 to 12 November 2023 - loan in the amount of PLN 8,548 thousand secured with promissory note issued by the debtor with a declaration and statement of submission to enforcement. The creditor is ING Bank Ślaski.
Overdraft facility in the amount of PLN 6,000 thousand till 31 March 2015 is secured by declaration of submission to execution.
Bonds
Enea SA concludes agreements for the bond issue programs to finance current operations and investments needs of Enea SA and its subsidiaries.
Name of the bonds issue programme | Date of conclusion of the programme | Amount of the programme | Bonds issued as at 31 December 2014 | Bonds issued as at 31 December 2013 | |
|---|---|---|---|---|---|
| 1 | Bonds Issue Programme Agreement with PKO BP S.A., Bank Pekao S.A., BZ WBK S.A. and Bank Handlowy S.A. (guaranteed)1) | 21 June 2012 | 3,000,0002) | 860,000 | - |
| 2 | Bonds Issue Programme Agreement with Bank Gospodarstwa Krajowego (guaranteed) | 15 May 2014 | 1,000.000 | 260,000 | - |
| 3 | Bonds Issue Programme Agreement with ING Bank Śląski S.A., PKO BP S.A., Bank PEKAO S.A. and mBank S.A. | 30 June 2014 | 5,000 000 | 3) | - |
1) On 31 January 2014 Annex to the Agreement was concluded. The Annex changed the terms of financing conditions adapting them to the current market situation. On 31 October 2014 PKO BP S.A. took over the share of Nordea Bank Polska S.A. as a result of the legal merger of the two banks.
2) On 15 December 2014 there was a reduction of Bonds Issue Programme implemented under the Programme Agreement of 21 June 2012 from the amount of PLN 4,000,000 thousand to PLN 3,000,000 thousand. Due to the reduction of the Programme the Group will optimize available sources of funding and reduce the debt incurred costs and expenses
3) Enea SA made corporate decisions to start the process of issuing bonds under the Programme.
On 10 February 2015 a first bonds issue was carried out under the PLN 5,000,000 thousand Bond Issue Programme. The total amount of the issue was PLN 1,000,000 thousand. The interest rate on the bonds will be calculated based on WIBOR rate for 6-month deposits plus margin of 0.85%. Payments of interest will be due half-yearly on 10 August and 10 February each year. The total redemption of bonds is planned at 10 February 2020. Proceeds from the bonds issue will be used to finance the capital expenditures in line with the strategy of the ENEA Group.
10 February each year. The total redemption of bonds is planned at 10 February 2020. Proceeds from the bonds issue will be used to finance the capital expenditures in line with the strategy of the Enea Group
Hedging transactions
Between 12 February and 25 February 2015 Enea SA concluded 5 Interest Rate Swap transactions to hedge bonds issued debt of PLN 860,000 thousand. The transactions are connected with realization of an interest rate risk management policy adopted for Enea Group companies.