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Current Report of 28.11.2006
- Current Report No. 51/2006 - Execution of a significant agreement
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Legal grounds:
Paragraph 5.1.3 of the Ordinance of the Minister of Finance on current and periodical information provided by issuers of securities dated 19 October 2005
The report:
The Management Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna hereby informs that on 27 November 2006 the Bank entered into two agreements with one of the PKO BP SA clients (the “Client”) - bonds issue program agreement and the agreement obliging to purchase these bonds.
These two agreements were concluded by a syndicate of six banks.
Banks’ syndicate will organize bonds issue program worth of PLN 2 billions with the possibility of the issue in EUR, USD, CZK or PLN.
The interest of these bonds in based on market reference rate linked with bonds duration and coupon rate payment. The bonds issued according to the program will be unsecured.
According to the agreement obliging to purchase the bonds Bank is obliged to purchase:- short-term debt securities up to the total amount of PLN 50 millions during one year from the day of the conclusion of the agreement obliging to purchase the bonds,
- long–term debt securities up to the total amount of PLN 50 millions during three months from the day of the conclusion of the agreement obliging to purchase the bonds.
The contract provides for no contractual penalties.
The total value of the agreements between the Bank and the Client during 12 months till the date of execution of the abovementioned agreements is PLN 900.03 million.
The execution of the above agreements constitutes grounds for the requirement to disclose the entering by the Bank into a significant agreement, since the total value of consideration under the agreements with the Client meets the criteria referred to in Paragraph 2.1.51), in connection with Para. 2.2 of the Ordinance of the Minister of Finance on current and periodical information provided by issuers of securities dated 19 October 2005.
The agreement of the highest value entered into with the Client:
The syndicated loan agreement, presented in current report nr 51/2005, is the agreement of the highest value among the agreements entered into between the Bank and the Client within the period of less than 12 months of the date of the above agreement, the total value of which meets the criteria referred to in Paragraph 2.1.51) of the ordinance of the Minister of Finance on current and periodical information provided by issuers of securities dated 19 October, 2005. - short-term debt securities up to the total amount of PLN 50 millions during one year from the day of the conclusion of the agreement obliging to purchase the bonds,
