PGE to borrow EUR 500m for renewables in Poland

Polish major lender Bank Pekao (WSE:PEO) said on Monday it is part of a bank syndicate to lend PLN 2.33 billion (USD 531m/EUR 495m) to local utility PGE Polska Grupa Energetyczna for increasing renewable electricity production and reducing emissions.

Bank Pekao, for which PGE is a long-term client, is one of the three main lenders of the syndicate which comprises six institutions in total, the bank said without specifying details.

The interest on the loan will depend on the environment, social and governance (ESG) rating to be assigned to PGE by a specialised rating agency. This requirement supports PGE's energy transformation towards reducing its carbon footprint, the bank added.

By backing Poland's biggest producer of renewable energy, the bank is contributing to the country's energy security and the green transformation of the sector, deputy CEO Jerzy Kwiecinski pointed out.

PGE ranks first in renewable energy generation in Poland with a total installed capacity of 2,433 MW. It has recently taken steps to develop 100 MW of wind and photovoltaic (PV) projects in Stalowa Wola, the southeastern Podkarpackie province, where it is already deploying a 153 MW solar farm.

(PLN 10 = USD 2.278/EUR 2.126)

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