State-owned utilities to finance PGG coal group

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On Tuesday, coal group PGG signed an agreement with the largest coal company in Poland and Europe – Kompania Węglowa (KW). The agreement was the last stepping stone needed for PGG to start its operations. It will be funded by state-controlled utilities.

Twelve investors signed the list of intention to recapitalize PGG to the amount of PLN 2.42 billion, among others KW, PGE Górnictwo i Energetyka Konwencjonalna (PGE GiEK), Energa, PGNiG Termika, Węglokoks, Fundusz Inwestycji Polskich Przedsiębiorstw (FIPP), Towarzystwo Finansowe Silesia, Alior Bank, Bank BGŻ BNP Paribas, Bank Gospodarstwa Krajowego, Bank Zachodni WBK, and PKO Bank Polski.

According to the PGG, PGE GiEK, Energa and PGNiG Termika will invest PLN 500 million; TF Silesia – PLN 400 million; FIPP – PLN 300 mln; and Węglokoks PLN 217 million. In contrast, banks along with Węglokoks declared the acquisition of new PGG bonds for the amount of PLN 1.37 billion, as a result of the refinancing of the current KW bond program.

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