No. 98/2012 | 19-06-2012
PGNiG: Issue of PGNiG Series PGNG170619PZ notes under the Note Issuance Programme of May 22nd 2012
The Management Board of Polskie Górnictwo Naftowe i Gazownictwo S.A. (“PGNiG”) hereby reports an issue of notes under the Note Issuance Programme of May 22nd 2012 (the “Programme”).On June 19th 2012, PGNiG issued Series PGNG170619PZ notes (the “Notes”) under the Programme.1. Type of the NotesThe Notes are five-year unsecured, floating rate coupon bearer notes in book-entry form. All the Notes are denominated in the Polish złoty and have been offered in a private placement exclusively in the territory of Poland.PGNiG plans to introduce the Notes to trading on the BondSpot multilateral trading facility.2. Objectives of the issueProceeds from the issue of the Notes will be used to finance day-to-day needs related to the implementation of the PGNiG Group's strategy.3. Size of the issueThe aggregate value of the issued Notes was PLN 2,500,000,000.00 (two billion five hundred million złoty).4. Nominal value and issue price of the NotesThe nominal value of one Note is PLN 10,000.00 (ten thousand złoty).The Notes bear interest at a variable rate of 6M WIBOR plus a 1.25% margin (payable every six months).5. Redemption and interest paymentsThe Notes will be redeemed by way of a cash payment equal to the nominal value of the Notes.They mature on June 19th 2017.Interest on the Notes will be paid every six months starting from December 19th 2012, with the last interest payment on June 19th 2017.The Terms and Conditions of the Notes provide for early redemption of the Notes if PGNiG fails to make any payment under the Notes, defaults on any other obligation under the Terms and Conditions of the Notes, or in the case of events which trigger the exercise of the Early Redemption Option (specified in detail in the Terms and Conditions of the Notes and known to the Noteholders).6. SecurityThe Notes are unsecured.7. Value of PGNiG's liabilities as at the last day of the quarter preceding the offer to acquire the Notes and projections of PGNiG's liabilities until full redemption of the NotesThe value of PGNiG’s liabilities under loans and debt instruments as at March 31st 2012 was PLN 6,502,114 thousand (six billion, five hundred and two million, one hundred and fourteen thousand złoty).Following the issue of the Notes discussed above, the total nominal value of all notes issued under the Programme and outstanding as at June 19th 2012 was PLN 2,500,000,000.00 (two billion five hundred million złoty).The Issuer believes that the prospects of its financial liabilities until full redemption of the offered Notes are positive, i.e. their level will be appropriate given the Issuer's liquidity position. The Issuer expects that until full redemption of the Notes the level of its financial liabilities may increase. Concurrently, the Issuer wishes to point out that its actual liabilities will depend on its day-to-day financial needs.8. Details enabling potential investors to assess the effects of the project financed with the issue proceeds and the issuer's ability to meet its obligations under the notes, if any such project has been specifiedNot applicable.9. Translation of the value of non-cash payment into cash paymentNot applicable. No non-cash payments are to be made in connection with the Notes.Additional reference: Current Report No. 82/2012 of May 22nd 2012, Current Report No. 95/2012 of June 13th 2012.