Energa S.A.

Report Publication Announcement • Sep 1, 2017

Current report no. 35/2017

Report title: Rating assigned to ENERGA SA's planned hybrid bond issue

Date: 1 September 2017

Legal basis: Art. 17 sec. 1 MAR - confidential information.

The Management Board of ENERGA SA ("Company") reports that on 1September 2017 the rating agency of Fitch Ratings ("Agency", "Fitch")assigned an expected rating of BB+ (EXP) to the planned hybrid bondissue for EUR 250 million. The assignment of this rating is linked tothe specific arrangements regarding the hybrid bond issue made by andbetween ENERGA SA and the European Investment Bank ("EIB").

The Company plans to obtain financing from EIB under the EuropeanCommission's Investment Plan, i.e. the Juncker Plan. The bonds to beissued are subordinated, unsecured bearer bonds offered in the form ofcoupon-bearing securities. The bond issue calls for two tranches of EUR125 million each with maturities of 16 and 20 years, respectively, withan early redemption option. The issue's final parameters will bespecified in the agreements between the Company and EIB and in the termsand conditions of the issue.

According to Fitch's methodology (Non-Financial Corporates HybridsTreatment and Notching Criteria), for the purpose of calculatingleverage ratios, 50% of the financing amount of these bonds will betreated as equity.

The purpose of securing this financing is to execute the investmentprogram in the Distribution Segment involving the modernization andexpansion of the ENERGA Group's distribution assets in 2017-2019.