As at December 31, 2020 As at
December 31,
Long-term Short-term Long-term Short-term
Credits and loans 7,105 1,318 7,999 1,382
Bonds issued 2,035 10 1,986 12
Lease 885 56 874 55
TOTAL CREDITS, LOANS, BONDS AND LEASES 10,025 1,384 10,859 1,449

Currency position and interest rates

As at December 31, 2020

Currency Reference rate Value in currency Value in PLN Repayment deadline
PLN Variable 7,294 7,294 credits, loans – Sep. 2021 – Jun. 2035;
bonds – May 2026 – May 2029
Fixed 3,103 3,103 credits, loans – Mar. 2023 – Aug. 2038
leases – Apr. 2021 – Mar. 2101
TOTAL PLN 10,397 10,397
EUR Variable 47 219 credits and loans – Jun. 2024
Fixed 140 644 bonds – Aug. 2029
TOTAL EUR 187 863
USD Variable 40 149 credits and loans – Sep. 2021
TOTAL USD 40 149

As at December 31, 2019

Currency Reference rate Value in currency Value in PLN Repayment deadline
PLN Variable 8.179 8.179 credits, loans – Sep. 2020 – Jun. 2034;
bonds – May 2026 – May 2029
Fixed 3.158 3.158 credits, loans – Sep. 2019 – Dec. 2028
leases – Mar. 2020 – Mar. 2101
TOTAL PLN 11.337 11.337  
EUR Variable 69 293 credits and loans – Jun. 2024
Fixed 139 595 bonds – Aug. 2029
TOTAL EUR 208 888  
USD Variable 22 83 credits and loans – May 2019 – Sep. 2020

Change in interest-bearing debt for the years ended December 31, 2020 and December 31, 2019

Year ended
December 31, 2020
Year ended
December 31, 2019
AS AT JANUARY 1 12,308 10,708
EFFECTIVE DATE OF IFRS 16 – January 1, 2019 895
Taken credits and loans / issued bonds /
new lease agreements
4,387 6,737
Recognition of new lease agreements 62
Repayment of credits, loans, leases / redemption of bonds/ (4,871) (6,040)
Interest accrued 240 302
Payment of interest (290) (290)
Acquisition of new subsidiaries 111 6
Conversion of loan into equity (57)
Foreign exchange differences 71 (15)
Other changes 20
AS AT DECEMBER 31 11,409 12,308

Credits and loans

Creditor Hedging instrument Date of maturity Limit in currency Currency Interest rate Liability as at 31-12-2020 Liability as at 31-12-2019
Bank consortium IRS 2023-09-30 3,630 PLN Variable 3,636 3,649
European Investment Bank 2034-08-25 1,500 PLN Fixed 1,505 1,505
Bank Gospodarstwa Krajowego IRS 2027-12-31 1,000 PLN Variable 876 1,001
European Bank for Reconstruction and Development IRS 2028-06-07 500 PLN Variable 501 502
Bank Gospodarstwa Krajowego IRS 2028-12-31 500 PLN Variable 500 500
European Investment Bank 2034-08-25 490 PLN Fixed 493 493
Nordic Investment Bank 2024-06-20 150 EUR Variable 219 293
Bank Pekao S.A. 2021-09-21 40 USD Variable 149 83
Millennium 2021-06-16 7 PLN Fixed 1 1
Bank Gospodarstwa Krajowego 2021-05-31 1,000 PLN Variable 455
Revolving credit facility
(bank consortium)
2022-12-16 4,100 PLN Variable 300
Bank Pekao S.A. 2024-12-22 500 PLN Variable 160
PKO BP S.A. 2022-04-29 300 PLN Variable 21
Bank Ochrony Środowiska SA 2020-10-01 136 PLN Variable 5
European Investment Bank 2038-10-16 273 PLN Fixed
NFOŚiGW March 2023 – December 2028 215 PLN Fixed 157 204
NFOŚiGW September 2021 – June 2035 697 PLN Variable 279 101
WFOŚiGW September 2020 – September 2026 70 PLN Fixed 6 2
WFOŚiGW September 2021 –September 2028 207 PLN Variable 101 82
Loan from partners 2020-11-06 9 PLN Fixed 9
Loan from partners 2021-03-02 14 PLN Fixed 15

As at December 31, 2020, the value of available overdraft facilities in the major companies of the PGE Capital Group amounted to PLN 1,811 million. The repayment dates of granted overdraft facilities in the current accounts of the major PGE Group companies fall in the years 2021 – 2024.

In 2020 and after the reporting date there were no defaults or breaches of other terms and conditions of the credit agreements.

Bonds issued

Emitent Hedging instrument Date maturity of programme Limit in programme currency Currency Interest rate Tranche issue date Tranche maturity date Liability as at December 31, 2020 Liability as at December 31, 2019
PGE SA IRS indefinite 5,000 PLN Variable 2019-05-21








PGE Sweden
AB (publ)
CCIRS indefinite 2,000 EUR Fixed 2014-08-01 2029-08-01 644 595



Lease liabilities

Lease liabilities are recognised by the lessee at the commencement date.

At the commencement date, the lessee measures the lease liability at the present value of the lease payments outstanding at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. Otherwise, the lessee uses the lessee’s incremental borrowing rate.

At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right of use the underlying asset during the lease term that are not paid at the commencement date:

  • fixed payments (including in principle fixed lease payments), less any lease incentives receivable;
  • variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
  • amounts expected to be paid by the lessee under residual value guarantees;
  • the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
  • payments of penalties for terminating the lease, if the lease terms provide for the possibility of the lessee’s exercising an option to terminate the lease.

After the commencement date, the lessee measures the lease liability by:

  • increasing the carrying amount to reflect interest on the lease liability which, in each period during the lease term, is the amount that produces a constant periodic rate of interest on the remaining balance of the lease liability,
  • reducing the carrying amount to reflect the lease payments made, and
  • remeasuring the carrying amount to reflect any reassessment or lease modifications, or to reflect revised substantially fixed lease payments.

The PGE Group is a party to a number of lease, tenancy, easement or rental contracts. The underlying assets include land, areas of technical infrastructure, office and utility space, equipment, plants, technical premises, as well as IT infrastructure. Contracts are concluded for a definite or indefinite period of time with a specified notice period. The Group also has the right of use land under perpetual usufruct. The Group estimates the term of each lease, taking into account relevant facts and circumstances that may affect the extension or shortening of the lease terms.

Some contracts include variable fees based on the inflation rate announced by the Central Statistical Office for the previous year. The index-based element determines their variable nature – these charges are taken into account in the measurement of lease liabilities. In some cases, the annual lease payment is increased by variable charges other than those linked to a rate or index. These include, for example, payments of property tax or building tax. These charges are not included in the measurement of lease liabilities. Leases of land for the construction and operation of wind farms, in addition to the rent, include charges for compensation for the exclusion of land from cultivation for the construction period. These charges are not included in the measurement of the lease liability as no rights to use assets are transferred to the lessee and no services are provided for the benefit of the lessee. Similarly, charges relating to compensation for losses for entering land to perform operation, maintenance and other work related to the operation of a wind power park are also treated similarly.

Decisions on the right of perpetual usufruct of land are usually granted for a fixed period of 99 years.  The fee for perpetual usufruct of land is established as a percentage of the land value. The amount of the annual fee for perpetual usufruct of land property is revised no more frequently than once every 3 years, if the value of such property changes, thus it will be a variable fee depending on an index or rate that is included in the measurement of the lease liability.

The Group leases small office equipment (printing equipment, photocopiers, computers, etc.), treated as leases of low-value assets. The Group decided to apply the exemption and not to recognise the right-of-use assets and lease liabilities in respect of these contracts in the statement of financial position.

The Group also applied a practical exemption for short-term leases. This mainly concerns decisions on use of a road or rail lane strip if a decision is issued for less than 12 months.

The Group also takes advantage of a simplification for short-term leases in the case of property leases for an indefinite period with a notice period of less than 12 months, where leased space is not subject to special adjustments, there are no significant exit barriers (e.g. penalties for early termination) and both parties have a practical possibility to lease such space on the market.

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