Norton Rose Fulbright advises banks on PLN 10.5bn (€ 2.31 bn) sustainability-linked financing for Grupa Polsat Plus

Global law firm Norton Rose Fulbright advised a consortium of Polish and foreign financial institutions on PLN 10.5 billion (€ 2.31 billion) financing made available to Grupa Polsat Plus entities Cyfrowy Polsat S.A. and Polkomtel sp. z o.o., which comprises of (i) a term loan in Polish złoty up to a maximum amount of PLN 7.255 billion (€ 1,6 bn), (ii) a term loan in euro up to a maximum amount of € 506 million and (iii) a revolving loan in Polish złoty up to a maximum amount of PLN 1 billion (€ 220 million).

The funds will be used by Cyfrowy Polsat and Polkomtel for repayment of existing financial indebtedness made available under the senior facility agreement dated 21 September 2015, financing renewable energy and real estate investments and financing general corporate needs. 

The consortium of Polish and foreign financial institutions was led by Powszechna Kasa Oszczędności Bank Polski S.A., Santander Bank Polska S.A., Bank Polska Kasa Opieki S.A., BNP Paribas Bank Polska S.A., ING Bank Śląski S.A. as Global Banking Coordinators, Santander Bank Polska S.A. as ESG Senior Coordinators, ING Bank Śląski S.A. and BNP Paribas Bank Polska S.A. as ESG Junior Coordinators and included SMBC Bank EU AG, Bank of China Limited, Luxembourg Branch, Société Générale Spółka Akcyjna Oddział w Polsce, Bank Gospodarstwa Krajowego, Bank Millennium S.A., PZU Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych BIS 1, mBank S.A, Credit Agricole Bank Polska S.A., Erste Group Bank AG, Credit Agricole Corporate and Investment Bank, Bank Ochrony Środowiska S.A., Alior Bank S.A., Powszechny Zakład Ubezpieczeń S.A., Powszechny Zakład Ubezpieczeń na Życie S.A., Industrial and Commercial Bank of China (Europe) S.A. (Spółka Akcyjna) Branch in Poland, Haitong Bank S.A. Spółka Akcyjna Oddział w Polsce, as well as Santander Bank Polska S.A., as facility Agent and Bank Polska Kasa Opieki S.A., as security agent (Agent).
The loan facilities made available under the senior facility agreement are linked to the sustainable development goals that the Polsat Plus Group is pursuing through environmental, social and corporate governance (ESG) ambitions set out in its Strategy 2023+ adopted in December 2021, which includes investment in zero-emission generation capacity, production of green energy and the transition of Group companies to using only clean, green energy in their operations. One of the factors on which the margin for the loan facilities will depend is the achievement of certain targets related to the production and consumption of clean, zero-emission energy by the companies of the Polsat Plus Group.

The Polsat Plus Group is one of the largest Polish companies and the leading media and telecommunications group in Central and Eastern Europe and includes: Cyfrowy Polsat S.A., Polkomtel Sp. z o.o., Netia S.A., Telewizja Polsat Sp. z o.o., Grupa Interia Sp. z o.o. Polsat Plus Group offers a complete package of multimedia services designed for the entire family: pay TV via satellite, terrestrial and online (IPTV and OTT) broadcasting, mobile and fixed-line telephone solutions, data transmission services and broadband Internet access, mainly in LTE, LTE Advanced and 5G mobile technologies and also through fixed-line networks, including fiber optic as well as a wide array of wholesale services to other telecommunications operators, television operators and broadcasters.

The team was led by senior associate Igor Kondratowicz and included partner Tomasz Rogalski and associate Daniel Książek. The English law advice was provided by partner Alex Zekkos and associate Alannah Frost. 

Partner Tomasz Rogalski, who supervised work of Norton Rose Fulbright’s team on this transaction, said:

“We are very pleased to have assisted group of financial institutions on this complex financing transaction with Grupa Polsat Plus as sponsor which contains sustainability-linked and green transition goals the Sponsor has set out in its business strategy. ESG-related conditions of the bank financings are gaining momentum in Poland these days and we are pleased to have supported financial institutions in their documentation.”