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25.2 Fair value of financial instruments
Financial assets and liabilities measured at amortised cost represent a reasonable approximation of their fair values, except for bonds issued by PGE Sweden AB (publ) and a loan from the European Investment Bank.
Bonds issued by PGE Sweden AB (publ) are based on a fixed interest rate. Their amortised cost presented in these financial statements as at December 31, 2022 amounted to EUR 140 million and their estimated fair value amounted to EUR 125 million. The indicators used in the valuation belong to Level 1 of fair value hierarchy.
In the case of the loan with the European Investment Bank, which is based on a fixed interest rate, its value at amortised cost shown in the financial statements at the reporting date is PLN 2,188 million and its fair value is PLN 1,871 million. The indicators used in the valuation belong to Level 2 of fair value hierarchy.
Financial instruments not quoted on active markets, for which fair value cannot be estimated reliably
The key positions in this category of financial instruments are shares in entities not listed on active markets. PGE Group is not able to reliably determine the fair value of shares of companies not listed on active markets and therefore they are presented at cost, adjusted for impairment if necessary.