PGE Polska Grupa Energetyczna S.A.

Capital/Financing Update • May 9, 2019

Terms of domestic bonds issue by PGE Polska Grupa Energetyczna S.A.

With regard to the current report no. 12/2019 dated April 17, 2019, theManagement Board of PGE Polska Grupa Energetyczna S.A. ("PGE", the"Company") discloses that on May 9, 2019, following the closing of bookbuilding process, the Company has decided to issue two series of bondson Polish market (the "Bonds") within the domestic bonds program of upto PLN 5 000 000 000 on following terms:

1. The total nominal value of the Bonds of both series: PLN 1 400 000000, including series PGE002210526 with maturity of 7 years: PLN 400 000000 and series PGE003210529 with maturity of 10 years: PLN 1 000 000 000.

2. Nominal value of one Bond: PLN 1 000.

3. The issue price of one Bond: equal to the nominal value of one Bond.

4. Issue date: May 21, 2019 (the "Issue Date").

5. Bonds buy out date: May 21, 2026 (series PGE002210526) and May 21,2029 (series PGE003210529).

6. Interest rate:

a) series PGE002210526: floating rate, based on interest rate consistingof WIBOR 6M and margin of 1.20%,

b) series PGE003210529: floating rate, based on interest rate consistingof WIBOR 6M and margin of 1.40%.

7. All benefits arising from the Bonds will be solely cash benefits.

8. The Bonds will not be secured.

9. The issue of Bonds will take place pursuant to art. 33 section 2 ofthe Act of January 15, 2015 on bonds.

10. The Bonds will be issued as bearer Bonds, will not have a form ofdocument and will be registered in the dematerialised securitiesdepository kept by Krajowy Depozyt Papierów Wartościowych S.A. (theCentral Securities Depository of Poland)

11. PGE will apply for the introduction of the Bonds to alternativetrading system Catalyst within 90 days from the Issue Date.

12. The purpose of the issue, in the meaning of art. 32 section 1 of theAct of January 15, 2015 on bonds, was not determined.