PGE Polska Grupa Energetyczna S.A.

Capital/Financing Update • Sep 17, 2018

Signing of the loan agreement

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”)discloses that on September 17, 2018 PGE has signed the revolving loanagreement (the “Agreement”) with a syndicate of banks: Powszechna KasaOszczędności Bank Polski S.A. with its seat in Warsaw, Intesa SanpaoloS.p.A. with its seat in Turin, acting through its branch Intesa SanpaoloS.p.A. Spółka Akcyjna Branch in Poland with its seat in Warsaw, MUFGBank (Europe) N.V. with its seat in Amsterdam and Santander Bank PolskaS.A. with its seat in Warsaw (the “Banks”).

The subject matter of the Agreement includes granting by the Banks ofthe revolving loan of up to PLN 4,100 million (the “Loan”). The Loan maybe utilised for:

- financing of the ongoing operations of PGE and PGE Group,

- financing of the investment and capital expenses related to activitiesof PGE and PGE Group, and

- refinancing of the financial liabilities of PGE and PGE Group.

The Loan will be available for use as from 90th day following theAgreement signing date. The Agreement provides for interest periods notlonger than 6 months. The final repayment date falls on December 16,2022. Interest rate of the Loan will be based on the floating rate basedon the relevant WIBOR rate (reference rate) plus margin.

According to the provisions of the Agreement, PGE undertakes to keep theconsolidated net debt to consolidated EBITDA (the „Coverage Ratio”) at alevel not higher than 4:1 in case PGE holds credit rating on investmentgrade (i.e. at BBB- or higher assigned by S&P or Fitch and Baa3 orhigher assigned by Moody’s) or at a level not higher than 3.5:1 in casePGE does not held credit rating on investment grade.

In addition, the Management Board of PGE informs that the Loan is notsecured on any of the assets of PGE or of the PGE Group.