Report No. 15/2016

Legal basis:

Paragraph 5.1.3 of the Ordinance of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and on conditions under which such information may be recognised as being equivalent to information required by the regulations of law of a state which is not a member state (the “Regulation”)

The report:

The Management Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna („PKO Bank Polski” or the „Bank”) hereby informs that on February 29th 2016 the Bank concluded a guarantee agreement with a counterparty (the “Counterparty” or the “Guarantor”) providing for unfunded credit protection with respect of a portfolio of selected corporate exposures of the Bank, within the meaning of the CRR regulation (the “Guarantee” and the “Guarantee Agreement” respectively).
The value of the portfolio covered under the Guarantee (amount of the Guarantee) amounts (after rounding) to 1,203,770,723PLN (say: one billion two hundred three million seven hundred seventy thousand seven hundred twenty three PLN).

The maximum time of the coverage under the Guarantee is 36 months, however the Bank shall be entitled to unilaterally terminate the Guarantee prior to the expiry of this period.
The Guarantee Agreement provides for liquidated damages (contractual penalties) that may be due to the Guarantor from the Bank in case of a breach of certain obligations of PKO Bank Polski under the Guarantee Agreement. The total amount of these liquidated damages (contractual penalties) shall not exceed 26,000,000 PLN (in words: twenty six million PLN). The Guarantee Agreement does not preclude from seeking redress of further damages exceeding the sum of liquidated damages (contractual penalties).

Total value of the the agreements concluded by the Bank with the Counterparty and its subsidiaries within last 12 months is PLN 6,238,351,995 (say:  six billion two hundred thirty eight million three hundred fifty one thousand nine hundred ninety five PLN).

The conclusion of the Agreement triggers the Bank’s obligation to announce the conclusion of a significant agreement because the total value of the performances under the Bank’s agreements concluded with the Counterparty and Counterparty’s affiliates meets the criteria provided for in Paragraph 2 item 1 pt. 44 in conjunction with Paragraph 2 item 2 of the Regulation.

The agreement described in current report No. 7/2016 is the highest-value agreement entered into between the Bank and the Counterparty and Counterparty’s affiliates within a period of less than 12 months of the date of the Agreement.