Our results

Bank loans and borrowings

Accounting policy applied

Bank loans and borrowings are initially recognized at fair value minus the incurred transaction costs. After initial recognize, loans and borrowings are carried according to amortized cost using the effective interest rate method.

Structure of bank loans and borrowings

Data in ths. PLN

 As at 31/12/2017 (audited)As at 31/12/2016 (audited)
Bank loans – secured on assets99,430118,236
Bank loans – other1,460,6511,348,479
Loans from related parties1,3113,605
Loans from other entities9381,088
Total1,562,3301,471,408
Long-term liabilities1,312,6291,273,605
Short-term liabilities249,701197,803
Total1,562,3301,471,408

(1) Liability under the loan was repaid on 2 January 2018.

(2) The Loan Agreement concluded by the Parent Company with the European Bank of Reconstruction and Development earmarked for refinancing the purchase of shares in AWT B.V. was entirely repaid early on 27 March 2017.

Summary of loan agreements

Loan agreements were concluded in the Group mostly for financing the investment plan, acquisition and day-to-day operations. The currencies of loan agreements include PLN, EUR and CZK.

Parent Company

Data in ths. PLN

Type of loanBank NameCollateralMaturityAs at 31/12/2017 (audited)As at 31/12/2016 (audited)
Investment loanmBank S.A.Bank enforcement title30/06/2017-4,210
Investment loanBank Polska Kasa Opieki S.A. (1)Bank enforcement title31/12/20178229,840
Investment loanBank Gospodarstwa KrajowegoBank enforcement title31/03/2021275,341377,478
Investment loanEuropean Investment BankNo collateral29/05/202042,57859,608
Investment loanBank Gospodarstwa KrajowegoStatement on submission to enforcement certified by a notary20/12/202660,07266,373
Investment loanBank Gospodarstwa KrajowegoStatement on submission to enforcement certified by a notary20/12/2026340,42175,884
Investment loanBank Polska Kasa Opieki S.A.Statement on submission to enforcement certified by a notary31/12/2026617,489649,759
Investment loanEuropean Bank for Reconstruction and Development (2)No collateral25/09/2027-42,748
Investment loanEuropean Investment BankNo collateral29/08/203193,77762,494
Total1,430,5001,348,394

(1) Liability under the loan was repaid on 2 January 2018.

(2) The Loan Agreement concluded by the Parent Company with the European Bank of Reconstruction and Development earmarked for refinancing the purchase of shares in AWT B.V. was entirely repaid early on 27 March 2017.

Subsidiaries

Data in ths. PLN

Type of loanBank NameCollateralMaturityAs at 31/12/2017 (audited)As at 31/12/2016 (audited)
Overdraft facilityPKO Bank Polski S.A.Capped mortgage, pledge on inventories15/07/201925429 
Investment loanBank Polska Kasa Opieki S.A. (2)Statement on submission to enforcement certified by a notary20/12/20216,004-
Investment loanBank Polska Kasa Opieki S.A. (2)Statement on submission to enforcement certified by a notary31/12/20213,771-
Investment loanmBank S.A.Surety of PKP CARGO S.A.30/06/2017-85
LoanWFOŚIGW Łódź (1)1) Blank promissory note2) Irrevocable power-of-attorney to bank account3) Surety of PKP CARGO S.A.31/03/20249381,088
Investment loanBank Polska Kasa Opieki S.A. (2)Statement on submission to enforcement certified by a notary31/12/20218,844-
Investment loanBank Polska Kasa Opieki S.A. (2)Statement on submission to enforcement certified by a notary31/12/202111,532-
Investment loanING Bank N.V.UniCredit Bank Czech Republic and Slovakia a.s.Raiffeisenbank a.s.1) Pledge on tangible non-current assets and receivables2) Pledge on bank accounts3) Assignment of rights under insurance policy26/09/202148,71348,663
Investment loanING Bank N.V.UniCredit Bank Czech Republic and Slovakia a.s.Raiffeisenbank a.s. (1)1) Pledge on tangible non-current assets and receivables2) Pledge on bank accounts3) Assignment of rights under insurance policy30/06/202150,69269,144
LoanAWT Rail SK a.s. (1)No collateral31/12/20181,3113,605
Total131,830123,014

(1) As at 31 December 2017, interest of bank loans and liabilities under fixed-interest-rate loans ranged from 0.06% to 4%.

(2) In February and March 2017, PKP CARGO SERVICE Sp. z o.o., CARGOTOR Sp. z o.o., PKP CARGOTABOR Sp. z o.o., PKP CARGO CONNECT Sp. z o.o. concluded loan agreements with Bank Polska Kasa Opieki S.A. for refinancing the fixed assets purchased in 2015 – 2016.

Unused lines of credit

Data in ths. PLN

Type of loanBank NamePeriod of availabilityCurrencyAs at 31/12/2017(audited)As at 31/12/2016(audited)
Investment loanEuropean Investment Bank31/12/2016PLN-155,000
Investment loanEuropean Investment Bank19/07/2020EUR68,549113,918
Investment loanBank Gospodarstwa Krajowego (1)27/12/2017EUR-300,171
Investment loanBank Polska Kasa Opieki S.A.31/12/2016PLN-50,500
Investment loanEuropean Bank for Reconstruction and Development31/12/2016EUR-398,160
Overdraft facilitymBank S.A. (2)31/05/2017PLN-100,000
Overdraft facilityBank Polska Kasa Opieki S.A. (3)25/05/2018PLN100,000-
Overdraft facilityPKO Bank Polski S.A.15/07/2019PLN974572
Total169,5231,118,321

(1) On 14 March 2017, an annex to the loan agreement with Bank Gospodarstwa Krajowego was signed, pursuant to which the period of availability of the loan in question was extended from 31 December 2016 to 27 December 2017.

(2) 31 May 2017 marked the end of the overdraft facility agreement concluded with mBank S.A.

(3) On 26 May 2017, the overdraft facility agreement was concluded with Bank Polska Kasa Opieki S.A.

The foregoing changes regarding overdraft facility agreements are attributable to change of the bank servicing the cash pooling agreement in which selected the PKP CARGO Group companies participate.

Breach of the terms and conditions of the loan agreements

As at 31 December 2017, portion of the Group’s long-term liabilities related to loans of PLN 6,628 thousand was presented as short-term liabilities. This stems from breach by a subsidiary company PKP CARGOTABOR Sp. z o.o. of one of the conditions of the loan agreement concerning the keeping of the required total debt ratio. Pursuant to the requirements of IAS 1, if an entity is in breach of the terms and conditions of the loan agreement, and, as a result of this, that liability may become due and payable on demand, such liability shall be classified as short-term liabilities. In February 2018, the subsidiary company PKP CARGOTABOR Sp. z o.o. obtained from the bank, which is a party to the agreement in question, the approval for increase of total debt ratio and the assurance of further continuation of cooperation in financing, and, as a result of this, if in subsequent reporting periods this new ratio is not exceeded, the liability will be once again presented as long-term liabilities.

Breach of the terms and conditions of the agreement in question shall not have any effect on presentation of liabilities under other loan agreements concluded by the Group.

As at 31 December 2017, there were no breaches of any other loan agreements.