Feasibility of investment plans
The Group’s total 2015 capital expenditure reached PLN 906,790 thousand and was financed with internally generated funds and the above-mentioned credit facility package (subject to redistribution among Group companies), as well as loans from the National Fund for Environmental Protection and Water Management (NFOŚiGW) and the Provincial Fund for Environmental Protection and Water Management (WFOŚiGW) and, to a limited extent, with leases and grants.
Under its centralised Financing Model, the Group signed a long-term credit facility package for a total amount of PLN 2,200m for the financing of its investment plans and other objectives outlined in the Group’s long-term Strategy:
- In April 2015, the Group gained access to a syndicated revolving credit facility of PLN 1,500m, which was partially used to refinance the existing financing agreements (up to PLN 717m); the remaining credit facility limit available as at December 31st 2015 stands at PLN 783m,
- In May 2015, the Group signed a long-term credit facility agreement with the EIB (PLN 550m) and with the EBRD (PLN 150m) for the financing of certain investment projects defined in the Group’s strategy; after the conditions to disbursement were satisfied, the Group drew EUR 50m (equivalent of PLN 213m) under the EIB facility and PLN 10m under the EBRD facility to finance its investment projects; the remaining limit available under both credit facilities as at December 31st 2015 stands at PLN 477m.
The Group also had access to PLN 24m available under investment loans from the National Fund for Environmental Protection and Water Management (NFOŚiGW) and the Provincial Fund for Environmental Protection and Water Management (WFOŚiGW).
Furthermore, the Group is able to finance its investment plans using either current or expected free operating cash flows (EBITDA), as well as credit facilities secured under the “New Financing” package in 2015.
Given the maximum acceptable levels of financial ratios agreed upon with the strategic lenders, the Group can further increase its external funding without the risk of breaching covenants under the above-mentioned credit facility package, or secure separate financing for investment projects implemented by SPVs on a project finance basis.
