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Overview

China Construction Bank (Europe) contributes to a zł500 million PLN syndicated sustainability-linked loan to Tauron Polska Energia for general corporate purposes

Commitments (Constant USD, 2023)$33,068,392
Commitment Year•2020Country of Activity•PolandDirect Recipient Country of Incorporation•PolandOverseas Jurisdiction•LuxembourgSector•EnergyFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 25, 2020
Last repayment (originally scheduled)
Mar 24, 2025

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • China Construction Bank (Europe) S.A. (CCB Europe)

Cofinancing agencies

Private Sector

  • Banca IMI S.P.A.
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)

Receiving agencies

Private Sector

  • Tauron Polska Energia S.A.

Loan description

March 2020 zł500 million PLN syndicated sustainability-linked loan to Tauron Polska Energia for general corporate purposes

Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On March 25, 2020, a syndicate of four banks — China Construction Bank (Europe) S.A. (CCB Europe), Intesa Sanpaolo Oddzia w Polsce, Banca IMI S.p.A. and the London Branch of Banca IMI — entered into a zł500,000,000 PLN syndicated sustainability-linked loan agreement with Tauron Polska Energia S.A. — a Poland-incorporated electric power and heat holding company headquartered in headquartered in Katowice listed on the Warsaw Stock Exchange with the State Treasury of the Republic of Poland as the largest shareholder (30.06% stake) — for general corporate purposes. The loan carried a maturity period of five years with two one-year extension options and an interest rate based on WIBOR with a given interest period plus a margin dependent on the level of utilization of the credit facility and based on the borrower's performance against environmental-related Key Performance Indicators (KPIs) about the reduction of the level of gas emissions and the increasing share of renewable energy sources in the power generation mix of the borrower. The borrower was able to use the funds during the entire financing period. The loan had an option to increase to zł600,000,000 PLN. The proceeds were to be used by the borrower to finance its general corporate purposes, excluding the financing of any new projects related to coal assets. Banca IMI served as facility agent. Intesa Sanpaolo served as paying agent. CCB (Europe) and the London Branch of Banca IMI served as mandated lead arrangers and bookrunners. As of December 31, 2020, zł160,610,000 PLN was drawn under the loan.

Staff comments

1. The individual contributions of the four lenders to this zł500 million PLN syndicated loan are unknown. Therefore, to estimate CCB Europe's contribution, AidData has assumed that each contributed equally (zł125,000,000 PLN) to the loan syndicate. 2. Tauron Polska Energia S.A. is an energy holding company in Poland. It owns power and heat generation and distribution, and coal mining assets through a number of companies, particularly in south-western Poland. It was the largest power distributor and the second largest power producer in Poland.