Ignitis Grupe

Capital/Financing Update • Nov 22, 2021

National Storage Mechanism | Additional information

Regarding the AB “Ignitis grupė” intention to loan up to EUR 300m to UAB “Ignitis”

AB “Ignitis grupė” (hereinafter – the Group) informs that on 22 November 2021 the Group Supervisory Board approved the conclusion of the loan agreement, which would not exceed EUR 300m, (hereinafter – the Loan) with UAB “Ignitis” (hereinafter – Ignitis). The approval of the Loan was also submitted by the Group Audit Committee.

The funds from the Loan will be allocated, as necessary, to finance differences between actual electricity/natural gas purchase prices and the approved tariffs for household consumers throughout 2021–2022. The amortisation of increased prices for more gradual changes for household consumers in electricity tariff is possible for a period shorter than until 31 December 2027, and in the natural gas tariff – shorter than 5 years from the regulatory period for which the estimated natural gas (product) price reduction was applied. The borrowing costs incurred by the Group will be compensated according to the procedure set out in the Law on Electricity and Law on Natural Gas of the Republic of Lithuanian as well as in the relevant methodologies of National Energy Regulatory Council. The Group informed about the related changes in legislation by a separate notification.

The Loan will be allocated from the bond funds raised by the Group and its equity. Considering the uncertainty of the required working capital, which depends on the actual electricity/natural gas purchase prices, the Loan agreement provides a possibility to use the Loan in parts, as necessary, over the period of one year from the conclusion of the Loan agreement. The repayment period for each part of the Loan – no longer than 6 years from the moment of the money transfer. Each part of the Loan can be repaid before the end of the ultimate Loan repayment period. This agreement does not include additional measures ensuring the fulfilment of obligations.

The Loan agreement will be signed in the nearest future, the Group will not inform about its signing and its repayment in a separate material event notification.

For more information please contact:

Artūras Ketlerius

Head of Public Relations

arturas.ketlerius@ignitis.lt

+370 620 76076