PGE Polska Grupa Energetyczna is planning to issue series E shares. If approved by an Extraordinary General Meeting, the issue may raise an estimated PLN 3.2 billion. The funds raised from investors would be deployed to capital-intensive investment projects in the area of distribution grid development, renewable energy sources and decarbonisation through the development of low-carbon sources.
“We want to intensify the implementation of the ambitious transition goals outlined in PGE Group’s strategy. This requires additional funding for development. Our objective is to raise approx. PLN 3.2 billion. The funding raised will be used to develop capital-intensive investment projects, including grid cabling, new photovoltaic projects, acquisitions of onshore wind farms and PV farms and low-carbon gas sources. We would like our largest investors to participate in the offer.” said Wojciech Dąbrowski, CEO of PGE Polska Grupa Energetyczna.
The additional funding that can be raised in the planned series E share issue will make it possible for PGE to adapt to regulatory changes and the evolving market environment, which will have a positive impact on strategic objectives and growth in value for shareholders.
“PGE Group’s long-term objective is climate neutrality by 2050, but the share of renewable energy in the Group’s portfolio will reach 50% already by 2030. We will spend PLN 75 billion on investments until 2030. Our shareholders received PGE Group’s strategy well and they understand the necessity of carrying out the energy transition, and the consistent implementation of investments transforming the PGE Group increases the trust in our company among investors, strengthens the company’s competitive position and increases its credibility and stability” emphasised Wojciech Dąbrowski.
The planned new equity issue will make it possible to accelerate projects in 2022-2026 across three areas:
- distribution of the future, as part of which PGE wants to increase the share of cable lines, speed up the roll-out of smart meters and enhance the efficiency of connection processes for new customers and renewable energy sources;
- intensification of renewables development, as part of which PGE wants to accelerate its PV capacity building programme and raise capital for acquisitions of onshore wind farms and PV farms;
- decarbonisation through the development of low-carbon sources, as part of which PGE seeks to raise funding to finance a CCGT project in Rybnik and CHP plants decarbonisation in three cities: Zgierz, Kielce and Bydgoszcz.
The proposed capital raise in the form of the series E share issue constitutes an optimal way of raising funding for implementing these objectives. The series E share issue, with pre-emptive rights waived, may make it possible to maximise raised capital and to lower costs. The proposed resolution assumes that existing shareholders that meet the criteria specified in the resolution and will hold more than 0.10% of shares in the Company’s share capital at the end of the general meeting registration date will be eligible to have priority in allocation in the share issue.
The capital injection and the use of proceeds for investments that are aligned with PGE Group’s strategy may contribute to strengthening the Company’s competitive position and enhancing its credibility and stability, as well as having a positive impact on the pace of PGE Group’s development.