DIRECTORS' REPORT ON PGNiG SA'S OPERATIONS ... - Notowania
DIRECTORS' REPORT ON PGNiG SA'S OPERATIONS ... - Notowania
DIRECTORS' REPORT ON PGNiG SA'S OPERATIONS ... - Notowania
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2. Financial Management<br />
Directors’ Report on <strong>PGNiG</strong> S.A.’s Operations in 2008<br />
The funds at the disposal of <strong>PGNiG</strong> S.A. guarantee the financing of all current and planned expenses<br />
related to the Company’s current and investing activities. Although no risk of liquidity loss occurs, in<br />
order to enhance security the Company has concluded current account loan agreements (for a total of<br />
PLN 230m), as well as a syndicated loan agreement (dated July 27th 2005) providing for a revolving<br />
multi-currency credit facility of EUR 600m. As at December 31st 2008, the debt under the syndicated<br />
loan amounted to EUR 191.3m.<br />
2.1. Current Investments<br />
In 2008, free cash was invested in instruments involving minimum credit risk, i.e. treasury securities<br />
and deposits with commercial banks with investment grade rating. Investments in debt securities<br />
issued by the State Treasury represented approximately 77% of the transaction volume. The financial<br />
investments made in 2008 were current investments, maturing in up to three months, which was<br />
consistent with <strong>PGNiG</strong> S.A.’s financial investment policy and the objectives specified in the issue<br />
prospectus.<br />
2.2. Loan Agreements<br />
In 2008, <strong>PGNiG</strong> S.A. concluded agreements for current account loans totalling PLN 110m. The<br />
Company did not disclose any liabilities under current account loans. The table below presents loan<br />
agreements concluded by the Company in 2008.<br />
Loan agreements concluded by <strong>PGNiG</strong> S.A. in 2008<br />
Bank<br />
Loan amount<br />
[PLNm]<br />
Interest rate Type Repayment date<br />
Bank Handlowy S.A. 40.0 WIBOR T/N + 0.8%<br />
working capital<br />
loan<br />
Dec 31 2009<br />
Millennium S.A. 40.0 WIBOR 1M + 0.8%<br />
working capital<br />
loan<br />
Dec 18 2009<br />
PKO BP S.A. 30.0 WIBOR 1M + 0.2%<br />
working capital<br />
loan<br />
Apr 22 2009<br />
Total 110.0<br />
The aggregate amount of loans advanced in 2008 by <strong>PGNiG</strong> S.A. to its related undertakings was PLN<br />
157.1m and USD 25m. The loans were granted to finance day-to-day operations and investment<br />
projects involving: the construction and expansion of the high-pressure transmission grid, construction<br />
and upgrade of the distribution network, connection of new customers to the supply system, as well as<br />
to finance prospecting work and payments under licence in Libya. The table below contains detailed<br />
information on the loans advanced by <strong>PGNiG</strong> S.A. to its related undertakings.<br />
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