What we do
ENERGA Finance AB (publ) was incorporated as a public limited liability company under the laws of the Kingdom of Sweden in 2012, with registration number 556898-6862. It is domiciled in the Kingdom of Sweden. The registered office of the company is located in Stockholm. ENERGA Finance AB is a wholly owned subsidiary of ENERGA SA, a holding company of a Polish energy Group.
ENERGA Group is one of the four largest power groups in Poland. The core business entails distribution, generation and sales of electricity and heat. The Group supplies electricity to more than 2.9 million retail and business clients. We operate more than 184 thousand km of power lines for the transmission of 21.5 TWh of electricity annually. The distribution grid covers almost 75 thousand km2, i.e. representing approximately 24% of the country’s landmass. The Group is one of the four largest electricity suppliers in Poland. ENERGA SA is listed on the Warsaw Stock Exchange since 2013.
ENERGA Finance AB is the group’s only overseas financing vehicle. Leveraging on the robust financial strength of ENERGA Group, the company focuses on:
- Close cooperation with companies within Energa Group in the fields of identifying financing needs and organizing the financing on international markets,
- Offering the Group an access to a relatively competitive and diversified source of financing, in particular from issuance of Eurobonds
- Safe and diverse investment of cash surpluses on international markets,
- Professional market analysis of the broad universe of financing and investment opportunities.
ENERGA Finance AB obtains financing on international markets and then lends money to other group companies through cross-border intra-group lending, while actively managing the surplus cash through short term, liquid investments. The company is active on the Eurobond market through the Euro Medium Term Note Programme established on 15 November 2012 and two series financing issued:
- 500 m EUR with 3.25% coupon issued in 2013 with 7-year tenor
- 300 m EUR with 2.125% coupon issued in 2017 with 10-year tenor
ENERGA Group is exposed to traditional business risks associated with global economic development, foreign exchange fluctuations, market liquidity level and regulatory landscape.
ENERGA Finance AB also actively manages the surplus cash through diverse range of short term, liquid investments. ENERGA Finance AB monitors international financial markets, provides financing, manages cash and conducts all aspects of treasury as guided by ENERGA Group policies. The company is also responsible for building banking and asset managers’ relationships and getting support from local tax advisory, audit, accounting and legal services.
INTERNATIONAL ACTIVITY OF ENERGA GROUP ON FINANCIAL MARKETS
Energa Finance AB has recently issued Eurobonds for the nominal amount of 300 m EUR with 2.125% coupon with 10-year tenor. Energa Finance AB, being the entity responsible for organizing cost effective and competitive financing for Energa Group, plans to respond to Energa Group’s entities’ needs and will be granting intragroup loans.
The presence on international financing markets of Energa Group is the effect of realization of the long-term strategy of the Group aimed at lowering the external financing costs through widening the access to international investors willing to invest in Energa Group instead of remaining open solely to domestic Polish capital. Lower financing costs allow the Group to cut additional financial expenses and focus on realizing the core business investments.
The financial surpluses of Energa Group are invested on current basis on Polish and international markets. Depending on the investment opportunities being identified by the Group, the surpluses are invested on international markets by Energa Finance, which provides the Group with current financial investment opportunities identified on international markets.
This strategy of the Group aimed at presence of Energa on international markets allows on one hand to cut costs of financing and on the other hand to increase investment opportunities.