The management of capital and liquidity in the Group aims at providing both relevant funding capabilities for business development and at securing relevant liquidity. In KGHM, this is managed in accordance with the Management Board - approved „Financial Liquidity Management Policy”, whereas in KGHM International it is managed pursuant to the Investment Policy.
The basic principles are as follows:
- the investment of financial surpluses in safe financial instruments
- limits for individual financial investment categories
- limits for the concentration of resources for financial institutions
- the need to ensure stable and effective financing for the Group’s operations
Borrowing by the Group is based on four pillars:
- an unsecured, revolving syndicated credit facility in the amount of USD 2 500 million with a maturity of 11 July 2019 (with an option to extend for another 2 years) an investment loan granted by the European Investment Bank in the total amount of PLN 2 000 million with a financing period of 12 years
- bank loans with a total amount exceeding PLN 4 600 million, used to finance working capital and support current liquidity in companies, along with investment loans drawn by the Company to finance investment goals
- the bond issuance program of KGHM International Ltd. to the amount of USD 500 million
These sources of financing fully cover the short, medium and longterm liquidity needs of the Group. In 2014, the Group made use of borrowing which was available from all of the above pillars. As at 31 December 2014, KGHM held liabilities due to short-term bilateral bank loans and an investment loan in the amount PLN of 2 108 million (or USD 601 million).