PGNiG: Execution of credit agreement with Bank Pekao S.A.

Further to Current Report No. 47/2021 of December 13th 2021, Current Report 49/2021 of December 17th 2021, Current Report No. 1/2022 of January 5th 2022 and Current Report No. 38/2022 of June 30th 2022, the Management Board of Polskie Górnictwo Naftowe i Gazownictwo SA (“PGNiG”, “Company”) announces that on July 28th 2022 PGNiG entered into a credit agreement with Bank Pekao S.A. (the “Bank”) for up to PLN 4.8bn for a period of 24 months from the date of the credit agreement (the “Credit Agreement”).

When signing the Credit Agreement PGNiG used State Treasury guarantees – a mechanism provided for in Art. 14.1.2 of the Act of January 26th 2022 on Special Measures to Protect Gas Fuel Customers in View of the Situation on the Gas Market (the “Act”).

Some of the reasons behind the decision to use the aforementioned emergency measure provided for in the Act are: (1) persistently high prices for gas fuel on the intraday/day-ahead and futures markets of energy exchanges, including the Polish Power Exchange in Poland, Title Transfer Facility in the Netherlands and Trading Hub Europe in Germany, expected to continue in the coming quarters, and (2) concentration limits imposed on financial institutions, which are limits on the permitted amount of funding that can be provided to a single entity or sector of the economy. With the Credit Agreement being secured by State Treasury guarantees, the Bank may provide funding to PGNiG without violating the applicable concentration limit.

The PGNiG Management Board is monitoring the situation on an ongoing basis, and the Company will take further steps to increase the available financing sources, including through continued use of the instruments provided for in the Act.

The disclosure of the information concerning PGNiG’s intention to acquire State Treasury guarantees for external financing defined in the Act was delayed on July 12th 2022 until this day according to Article 17 paragraph 4 of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.