now loading...
Wealth Asia Connect Treasury & Capital Markets Europe ESG Forum TechTalk
Asia Connect
ICBC, CCB join 4 billion zloty loan for Poland’s Tauron
Interest rate linked to sustainability targets such as emissions reduction rate and renewables share in energy generation mix
Michael Marray 3 Aug 2022

Industrial and Commercial Bank of China (Europe) and China Construction Bank (Europe) have participated in a bank syndicate for a 4 billion Polish zloty (US$840 million) sustainability-linked loan for Tauron Polska Energia.

Tauron is the largest electricity distributor in Poland, supplying 54 terrawatt-hours of power to 5.8 million end-customers last year. It is also the country‘s second largest power generator and the largest supplier of heat in Upper Silesia.

Funds from the syndicated loan will be used to refinance existing loans and finance corporate-wide expenditures, excluding those related to coal assets.

Aside from ICBC and CCB, other members of the loan syndicate included PKO Bank Polski, Bank Pekao, CaixaBank, Citi subsidiary Bank Handlowy, Erste Group Bank, and Santander Bank Polska. Norton Rose Fulbright’s banking and finance practice in Warsaw advised the bank lenders.

The interest rate on the funds made available under the loan agreement will be calculated on the basis of a variable interest rate plus a margin that depends on the fulfillment of certain sustainable development targets, measured through such indicators as emission reduction rate and increase in the share of renewable energy sources in the group’s generation structure. An independent auditor will confirm the accuracy of the calculations.

Last October Tauron received a 2.8 billion zloty loan from the European Investment Bank (EIB). This was the largest corporate loan ever granted in Poland by the EIB for purposes other than the development of transport infrastructure. The entire loan is being used to cover investment expenditure in power distribution grids in the southern and south-western parts of Poland.

Conversation
Munirah Khairuddin
Munirah Khairuddin
chief executive officer & country head
Principal Malaysia
- JOINED THE EVENT -
6th Global Islamic Finance Issuers and Investors Leadership Dialogue
Marking time as new opportunities emerge
View Highlights
Conversation
Christine Zhang
Christine Zhang
executive director & general manager, overseas business department
China Chengxin International Credit Rating
- JOINED THE EVENT -
17th Asia Bond Markets Summit - China Edition
Rebalancing in the transition journey
View Highlights
Advertisement