CMS advises Polska Grupa Energetyczna on financing related to its ESG rating

International law firm CMS has advised PGE Polska Grupa Energetyczna S.A. on raising funds to finance its general corporate and investment needs under a sustainable financing formula, and on the signing of a loan agreement with Bank Gospodarstwa Krajowego for PLN 2.5bn.

Linking the cost of financing the loan to PGE Group’s ESG rating confirms that sustainability in operations is of strategic importance. It also aligns to PGE Group’s green transformation plan, through the implementation of investments in low- and zero-carbon energy sources and grid infrastructure, by decarbonising its generation asset portfolio and achieving climate neutrality by 2050.

This is one of the largest ESG-linked financings on the Polish market, which assumes that the margin will depend on the Environmental, Social and Governance (ESG) rating awarded to PGE by a reputable independent agency.

CMS Poland’s Banking and Finance team’s advice included preparing and negotiating the loan agreement and supporting the client in obtaining corporate approvals.

The CMS team was supervised by Michał Mężykowski and led by Artur Bednarski with support from Iwona Ciszyńska (Finance).