(in PLNm) At December 31, 2022 At December 31, 2021
Non-current Current Non-current Current
Loans and borrowings 3.808 2.062 5.757 2.099
Bonds issued 2.046 21 2.033 13
Leases 945 54 876 48
TOTAL CREDIT, LOANS, BONDS AND LEASES 6.799 2.137 8.666 2.160

Currency position and interest rates

As at December 31, 2022

 (in PLNm)
Currency Reference rate Value in currency Value in PLN Final repayment deadline
PLN Variable 4.959 4.959 credit, loans – IX 2023 – III 2036; bonds – May 2026 –May 2029
Fixed 3.282 3.282 credit, loans – IX 2026 – X 2038 leases – I 2023 – XI 2120
TOTAL PLN  8.241 8.241
EUR Variable
Fixed 140 655 bonds – VIII 2029
TOTAL EUR 140 655
USD Variable 9 40 credit, loans – X 2023

As at 31 December 2021

 (in PLNm)
Currency Reference rate Value in currency Value in PLN Final repayment deadline
PLN Variable 6.587 6.587 credit, loans – April 2022 – June 2035; bonds – May 2026 – May 2029
Fixed 3.333 3.333 credit, loans – June 2022 – October 2038 leases – January 2022 – November 2120
TOTAL PLN 9.920 9.920
EUR Variable 28 129 Credit and loans – June 2024
Fixed 140 642 bonds – VIII 2029
TOTAL EUR 168 771
USD Variable 33 135 Credit and loans – September 2022
TOTAL USD 33 135

The Group is continuously monitoring works related to the IBOR reform, which may have an impact on financial instruments based on a variable interest rate. At December 31, 2022 the value of credit facilities, loans and bonds exposed to interest rate risk was PLN 4,999 million (PLN 4,959 million is based on WIBOR and PLN 40 million is based on LIBOR). To hedge the interest rate in respect of incurred financial liabilities, PGE S.A. uses IRS instruments and hedging accounting. As at December, 2022, PLN 4,274 million of the above loans, borrowings and bonds is covered by hedging instruments.

The following table illustrates changes in credit, loans and bonds in the years ended December 31, 2022 and 2021:

 (in PLNm) Year ended
December 31, 2022
Year ended
December 31, 2021
AS AT JANUARY 1 9.902 10.468
Drawn credit, loans, leases / issued bonds 2.293 601
Repayment of credit and loans / buy-back of bonds (4.305) (1.221)
Accrued interest 399 170
Paid interest (362) (123)
Exchange differences 13 9
Other changes (3) (2)
AS AT DECEMBER 31 7.937 9.902

Loans and borrowings

Lender Security instrume Maturity Limit in currency Currency Interest rate Liability at 31-12-2022 Liability at 31-12-2021
Bank consortium IRS 2023-09-30 3.630 PLN Variable 1.481 2.909
European Investment Bank 2034-08-25 1.500 PLN Fixed 1.442 1.505
Bank Gospodarstwa Krajowego IRS 2027-12-31 1.000 PLN Variable 627 751
European Investment Bank 2034-08-25 490 PLN Fixed 472 493
European Bank for Reconstruction and Development IRS 2028-06-06 500 PLN Variable 378 439
Bank Gospodarstwa Krajowego IRS 2028-12-31 500 PLN Variable 376 438
European Investment Bank 2038-10-16 273 PLN Fixed 274 274
Bank Pekao S.A. 2021-09-21 40 USD Variable 40 135
Nordic Investment Bank 2024-06-20 150 EUR Variable 129
European Investment Bank 2042-12-09 2.000 PLN Fixed
Bank Gospodarstwa Krajowego 2023-06-30 2.000 PLN Variable
Bank Gospodarstwa Krajowego 2023-12-31 1.600 PLN Variable
PKO BP S.A. 2023-10-31 2.000 PLN Variable
Bank Pekao S.A. 2024-07-03 500 PLN Variable
Bank Pekao S.A. 2023-10-31 100 USD Variable
Bank Gospodarstwa Krajowego 2024-06-12 2.500 PLN Variable
PKO BP S.A. 2023-10-31 300 PLN Variable
National Fund for Environmental Protection and water Management (NFOŚiGW) XII 2028 214 PLN Fixed 90 116
National Fund for Environmental Protection and water Management
VI 2024 – VI 2037 1.693 PLN Variable 515 491
Voivodship Fund for Environmental Protection and Water Management (WFOŚiGW) IX 2026 9 PLN Fixed 5 25
Voivodship Fund for Environmental Protection and Water Management (WFOŚiGW) III 2026 – XII 2029 213 PLN Variable 170 151

As at December 31, 2022, the value of the available overdrafts at significant PGE Group companies was PLN 3,817 million. The repayment dates for the available overdraft facilities of PGE Group’s key companies are in 2023-2024. The amount of overdraft limits remaining available was reduced by PLN 59 million (USD 13.5 million), i.e. by the amount of a letter of credit granted as security for the repayment of trade liabilities.

In 2022 and after the reporting period no failures to make payment or other breaches of credit agreement terms were recorded.

Bonds issued

Issuer Security instrument Date maturity date Program limit in currency Currency Interest rate Tranche issue date Tranche buy-back date Liability at 31-
Liability at 31-
PGE SA IRS indefinite 5.000 PLN Variable 2019-05-21 2029-05-21 1.009 1.003
2019-05-21 2026-05-21 403 401
PGE Sweden AB (publ) CCIRS indefinite 2.000 EUR Fixed 2014-08-01 2029-08-01 655 642

Lease liabilities


Lease liabilities

The lessee recognises the lease liability at the inception date.

At the inception date, the lessee measures the lease liability at the present value of the lease payments outstanding at that date. Lease payments are discounted using the interest rate implicit in the lease if that rate is readily determinable. Otherwise, the lessee applies the lessee’s marginal interest rate.

At the inception date, lease payments included in the measurement of the lease liability include the following payments for the right to use the underlying asset during the lease term, which remain payable at that date:

  • fixed lease payments (including substantially fixed lease payments) less any lease incentives payable;
  • variable lease payments that depend on an index or a rate, measured initially using that index or rate according to their value at the inception date,
  • amounts expected to be paid by the lessee under the guaranteed residual value,
  • the strike price of the call option if it can be assumed with reasonable certainty that the lessee will exercise the option, and
  • financial penalties for terminating a lease if the lease terms provide that the lessee may exercise the option to terminate the lease.

The lessee measures, after the commencement date, the lease liability by:

  • increase in carrying amount to reflect interest on the lease liability, which at each date during the lease term is an amount that earns a fixed periodic rate of interest on the outstanding balance of the lease liability,
  • a reduction in the carrying amount to take account of lease payments made, and
  • revise the measurement of the carrying amount to reflect any reassessment or modification of the lease or to reflect updated substantially fixed lease payments.

PGE Group is a party to a number of lease, tenancy, easement and rental agreements. The subjects of the agreements are land, technical infrastructure areas, office and commercial space, equipment, installations, technical premises, as well as IT infrastructure. Contracts are concluded for a fixed or indefinite period with a specified notice period. The Group also holds the right to use land in perpetual usufruct. The Group estimates the lease term on a case-by-case basis, taking into account relevant facts and circumstances that may affect the extension or reduction of the term of the contracts.

Some contracts have variable fees based on the inflation rate as announced by Statistics Poland for the previous year. The valorisation element accounts for their variable nature – these payments are taken into account in the valuation of the lease liability as they are based on an index. In certain cases, the annual rent is increased by other charges of a variable nature, other than variable charges depending on a rate or index. These are, for example, payments for property tax or building tax. These charges are not included in the measurement of lease liabilities. In land lease contracts for the construction and operation of wind farms, in addition to the lease rent, there are compensation payments for the exclusion of the property from agricultural cultivation for the construction period. These charges are not included in the calculation of the lease liability as no rights to use the assets are transferred to the lessee nor are any services provided to the lessee as a result of incurring these charges. Similarly, charges relating to compensation for losses for entering the site to carry out operation, maintenance and other works related to the operation of the wind power park are also treated.

Decisions on the perpetual usufruct of land are usually granted for a fixed period of 99 years. The fee for perpetual usufruct of land is set as a percentage of the land value. The amount of the annual fee for perpetual usufruct of land is subject to update no more frequently than once every 3 years, if the value of the property changes, thus it will be a variable fee depending on the index or the rate, which is taken into account in the valuation of the lease liability.

The Group leases small office equipment (printing equipment, photocopiers, computers, etc.), which it treats as leases of low-value assets. The Group has elected to apply the exemption and not to recognise rights of use 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 primarily applies to decisions on occupation of road or railway lanes if the decision is issued for a period of less than 12 months.

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

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