24.2 Fair value of financial instruments

The value of financial assets and liabilities measured at amortised cost is a reasonable approximation of their fair value, except for bonds issued by PGE Sweden AB (publ) and a credit obtained from the European Investment Bank.

Bonds issued by PGE Sweden AB (publ) are based on a fixed interest rate. As at 31 December 2023, their value at amortised cost, as disclosed in these financial statements, amounted to EUR 140 million and their fair value was EUR 130 million. The indexes used in valuation belong to Level 1 of the fair value hierarchy. In case of the fixed rate credit obtained from the European Investment Bank, the amortised cost disclosed in the financial statements as at the reporting date amounted to PLN 4,625 million and their fair value amounted to PLN 4,635 million. The indexes used in valuation belong to Level 2 of the fair value hierarchy.

Financial instruments not listed on active
markets, for which fair value cannot be reliably estimated

The most significant items in this category of financial instruments are shares in entities not listed on active markets. The PGE Capital Group is not able to reliably determine the fair value of shares in companies not listed on active markets, therefore they are presented at cost, adjusted for impairment write-downs, if necessary.