PGE Polska Grupa Energetyczna S A : seeks funding to accelerate energy transition

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PGE seeks funding to accelerate energy transition 18.01.2022

PGE Polska Grupa Energetyczna is planning to issue series E shares. If approved by an Extraordinary General Meeting, the issue may raise an estimated PLN 3.2 billion. The funds raised from investors would be deployed to capital-intensive investment projects in the area of distribution grid development, renewable energy sources and decarbonisation through the development of low-carbon sources.

"We want to intensify the implementation of the ambitious transition goals outlined in PGE Group's strategy. This requires additional funding for development. Our objective is to raise approx. PLN 3.2 billion. The funding raised will be used to develop capital-intensive investment projects, including grid cabling, new photovoltaic projects, acquisitions of onshore wind farms and PV farms and low-carbon gas sources. We would like our largest investors to participate in the offer." said Wojciech Dąbrowski, CEO of PGE Polska Grupa Energetyczna.

The additional funding that can be raised in the planned series E share issue will make it possible for PGE to adapt to regulatory changes and the evolving market environment, which will have a positive impact on strategic objectives and growth in value for shareholders.

"PGE Group's long-term objective is climate neutrality by 2050, but the share of renewable energy in the Group's portfolio will reach 50% already by 2030. We will spend PLN 75 billion on investments until 2030. Our shareholders received PGE Group's strategy well and they understand the necessity of carrying out the energy transition,and the consistent implementation of investments transforming the PGE Group increases the trust in our company among investors, strengthens the company's competitive position and increases its credibility and stability" emphasised Wojciech Dąbrowski.

The planned new equity issue will make it possible to accelerate projects in 2022-2026 across three areas:

• distribution of the future, as part of which PGE wants to increase the share of cable lines, speed up the roll-out of smart meters and enhance the efficiency of connection processes for new customers and renewable energy sources;
• intensification of renewables development, as part of which PGE wants to accelerate its PV capacity building programme and raise capital for acquisitions of onshore wind farms and PV farms;
• decarbonisation through the development of low-carbon sources, as part of which PGE seeks to raise funding to finance a CCGT project in Rybnik and CHP plants decarbonisation in three cities: Zgierz, Kielce and Bydgoszcz.

The proposed capital raise in the form of the series E share issue constitutes an optimal way of raising funding for implementing these objectives. The series E share issue, with pre-emptive rights waived, may make it possible to maximise raised capital and to lower costs. The proposed resolution assumes that existing shareholders that meet the criteria specified in the resolution and will hold more than 0.10% of shares in the Company's share capital at the end of the general meeting registration date will be eligible to have priority in allocation in the share issue.

The capital injection and the use of proceeds for investments that are aligned with PGE Group's strategy may contribute to strengthening the Company's competitive position and enhancing its credibility and stability, as well as having a positive impact on the pace of PGE Group's development.

Legal disclaimer:

This material and the information contained herein is not intended for release, publication or distribution, directly or indirectly, in or into the United States, or in or into other countries where public distribution of the information contained herein may be restricted or prohibited by the law.

This material has been prepared by PGE Polska Grupa Energetyczna S.A. (the "Company"), is for information purposes only and in no case constitutes an offer or invitation to make an offer, nor may it form the basis for a decision to invest in securities of the Company. This material is not an advertisement within the meaning of Article 22 of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market and repealing Directive 2003/71/EC.

The decision to increase the Company's share capital has not yet been made. The extraordinary general meeting of the Company, the agenda of which includes the resolution to increase the Company's share capital, has been convened for 7 March 2022. ("General Meeting"). The announcement of the convening of the General Meeting was published on 18 January 2022 in current report No. 2/2022.

The information in this material constituting the Company's objectives and other information about the prospects of the Company should be read as the Company's internal objectives and should not be interpreted as financial projections or forecasts. These values may or may not prove to be accurate.

Neither the Company nor any of its subsidiaries or other affiliates shall be liable for any damages whatsoever arising out of the use of this material or any part thereof or the content contained therein or otherwise in connection with this material.