5.1. DEBT RECONCILIATION

Accounting policies

The Group defines net debt as the total of existing bank borrowings (both current and non-current), debt securities, lease liabilities and liabilities under non-bank borrowings, less cash and cash equivalents and cash classified as non-current assets. The Group presents net debt to EBITDAear­nings be­fo­re in­te­rest, ta­xes, de­pre­cia­tion and amor­ti­za­tion as a measure of its debt.

 

Net debt
2019
2018
 
 Bank borrowings
 1,712
 1,166
 
 Lease liabilities
 1,775
 12
 
 Other
 20
 -
 
Total liabilities under non-current debt
 3,507
 1,178
 
 Bank borrowings
 3,181
 219
 
 Debt securities
 -
 2,298
 
 Lease liabilities
 64
 7
 
Total liabilities under current debt
 3,245
 2,524
 
 
 
 
 
Total debt
 6,752
 3,702
 
 Cash and cash equivalents
 3,037
 3,925
Note 5.4.
Net debt
 3,715
 (223)
 
 
 
 
 
EBITDAear­nings be­fo­re in­te­rest, ta­xes, de­pre­cia­tion and amor­ti­za­tion
 5,504
 7,115
Note 2.2.
Net debt / EBITDAear­nings be­fo­re in­te­rest, ta­xes, de­pre­cia­tion and amor­ti­za­tion
 0.67
 (0.03)
 

The chart below presents the change in net debt at the PGNiG Group [PLNm]

 


 


Change in debt
Bank borrowings
Debt securities
Lease liabilities
Other
Total
As at Jan 1st 2018
 1,085
 1,898
 23
 -
 3,006
Increase in debt
 874
 2,295
 -
 -
 3,169
 financing received
 865
 2,295
 -
 -
 3,160
 transaction costs
 9
 -
 -
 -
 9
Interest accrued
 27
 1
 1
 -
 29
Debt-related payments
 (597)
 (1,896)
 (17)
 -
 (2,510)
 principal repayments
 (562)
 (1,896)
 (16)
 -
 (2,474)
 interest paid
 (25)
 -
 (1)
 -
 (26)
 commission fees paid
 (10)
 -
 -
 -
 (10)
Exchange differences on debt in foreign currencies
 (4)
 -
 (1)
 -
 (5)
Finance lease
 -
 -
 13
 -
 13
As at Dec 31st 2018
 1,385
 2,298
 19
 -
 3,702
Impact of IFRS 16
 -
 -
 1,817
 -
 1,817
Increase in debt
 3,871
 -
 -
 20
 3,891
 financing received
 3,831
 -
 -
 20
 3,851
 transaction costs
 40
 -
 -
 -
 40
Interest accrued
 59
 7
 77
 2
 145
Increase (new agreements)
 -
 -
 95
 -
 95
Decrease (expired agreements)
 -
 -
 (8)
 -
 (8)
Debt-related payments
 (398)
 (2,305)
 (163)
 (2)
 (2,868)
 principal repayments
 (281)
 (2,290)
 (153)
 -
 (2,724)
 interest paid
 (58)
 (15)
 (10)
 (2)
 (85)
 commission fees paid
 (59)
 -
 -
 -
 (59)
Exchange differences on debt in foreign currencies
 (24)
 -
 2
 -
 (22)
As at Dec 31st 2019
 4,893
 -
 1,839
 20
 6,752