Risk of limited access to external financing or changes in lending terms

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Risk of limited access to external financing or changes in lending terms

− this risk is minimised by maintaining relationships with a diversified group of creditworthy partners, use of a wide range of financial instruments, fulfilment of disclosure obligations, as well as monitoring of and compliance with financial ratios, covenants and any other obligations towards the banks. The financial position and overall standing of the banks providing financing for the LOTOS Group are also monitored, as are any factors driven by developments on the global financial markets that may threaten the LOTOS Group's ability to raise financing.

The risk of limiting financing for our investment projects is particularly significant in the case of our exploration and production segment. As the risk depends on the quality of particular projects, each project is prepared with due care, in accordance with pre-defined rules. As part of ongoing risk management, a project's readiness for financing is determined by assessing its technical, organizational, legal, administrative and financial maturity. Next, the banking market is surveyed to determine availability and terms of financing.

The most recent large exploration and production project for which financing was raised was the development of the B8 field. The financing for the project was arranged from both commercial banks and other financing institutions (Polskie Inwestycje Rozwojowe - Polish Investments for Development).