The issue has been carried out by PGNiG Finance AB of Stockholm, a wholly-owned subsidiary of PGNiG. The Eurobonds will pay a yield of 4.098%, and will have a maturity of five years.  The book-building process for the issue was closed on February 7th 2012.

The proceeds raised through the issue of bonds by PGNiG Finance AB will be used to grant a loan to PGNiG, with a view to financing the Company's investment plans stemming from the capital group's strategy for 2011-2015.

Majority of the proceeds will be used for oil and gas exploration, particularly for shale gas exploration in Poland as well as for gas storage facilities enlargement, development of distribution network and on energy projects. In line with the Development Strategy until 2015, as updated in June 2011, in 2011-2015 the PGNiG Group intends to spend PLN 27bn on investment projects. Over a half of this amount (i.e. approximately PLN 15bn) will be spent on exploration for crude oil and natural gas, including shale gas.

On August 25th 2011, PGNiG SA signed  the documentation for a EUR 1.2bn Eurobond issue programme with PGNiG Finance AB (PGNiG's subsidiary) and three banks, including Societe Generale, BNP Paribas and Unicredit Bank AG. Under a five-year programme, PGNiG Finance AB will be able to issue fixed or floating rate bonds with maturities of up to 10 years. 

Furthermore, PGNiG SA provided a guarantee of up to EUR 1.5bn in respect of the liabilities of PGNiG Finance AB under the Eurobond issue, which remains valid until December 31st 2026.

Joanna Zakrzewska

Spokesperson for PGNiG SA