Report No. 32/2014

25.04.2014 20:39
Conclusion of an agreement with a client of PKO Bank Polski S.A. - significant agreement

Legal basis:

Paragraph 5.1.3 of the 19 February 2009 Ordinance of the Minister of Finance 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 report:

The Management Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna (“PKO Bank Polski”) hereby announces that on 25 April 2014 PKO Bank Polski, as a member of a consortium of banks, concluded a loan agreement with a client of PKO Bank Polski (the “Client”).

The subject of the agreement is granting the Client a revolving loan in a total amount of up to EUR 2,000,000,000 (i.e. approximately PLN 8,378,600,000, based on the average EUR/PLN exchange rate as at 25 April 2014, as stated by the National Bank of Poland), to be used for refinancing the Client’s revolving credit and for the financing of the Client and Client Group entities operations (the “Loan” and the “Loan Agreement”).

PKO Bank Polski’s share in the amount of the Loan is EUR 100,000,000 (i.e. PLN 418,930,000, based on the average EUR/PLN exchange rate as of 25 April 2014, as stated by the National Bank of Poland). The final repayment of the Loan shall be made within 5 years from the execution of the Loan Agreement. The Loan may be drawn in EUR, USD, PLN, CAD and CZK. The interest rate of the Loan is based on WIBOR/EURIBOR/LIBOR/PRIBOR increased by the margin, which depends on the net debt/EBITDA ratio. Other loan conditions do not differ from market conditions.

The total value of the agreements between PKO Bank Polski and the Client and its subsidiaries during 12 months preceding the date of execution of the Loan Agreement (including it) is PLN 2,642,075,250 .

The execution of mentioned above agreement constitutes grounds for the requirement to disclose the entering by the PKO Bank Polski S.A. into a significant agreement, since the total value of consideration under the agreements with the Client meets the criteria referred to in Paragraph 2.1.44), in connection with Para. 2.2 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 highest-value agreement entered into with the Client:

The largest exposure of PKO Bank Polski towards the Client which was created within the 12 months preceding the execution of the Loan Agreement is the exposure acquired by PKO Bank Polski within the scope of the “Swedish Portfolio” acquired by PKO Bank Polski from Nordea Bank AB (publ) at the closing of the acquisition by PKO Bank Polski of shares of Nordea Bank Polska S.A., Nordea Polska Towarzystwo Ubezpieczeń na Życie S.A. and Nordea Finance Polska S.A. (as announced by PKO Bank Polski in its current report No. 26/2014 of April 1, 2014) (the “Acquired Exposure”). The Acquired Exposure results from an agreement executed as a part of a consortium of banks on 28 April 2011 which applied to refinancing Client’s credit lines (the “Acquired Agreement”). The funds received by the Client from the loan granted under the Acquired Agreement were used for the repayment of current foreign indebtedness and financing of the Client and the Client Group entities operations.

The maximum possible indebtedness under the Acquired Agreement amounts to EUR 2,625 million (i.e. approximately PLN 10,330 m, based on the average EUR/PLN exchange rate as of 28 April 2011, as stated by the National Bank of Poland). PKO Bank Polski’s share in the amount of the loan available under the Acquired Agreement is EUR 300,000,000. (i.e. PLN 1,252,950,000, based on the average EUR/PLN exchange rate as of 1 April 2014, as stated by the National Bank of Poland). The Acquired Agreement is concluded until 2016 with two one-year extension options. The loan granted under the Acquired Agreement may be drawn in EUR, USD, PLN and CZK. The interest rate of the loan was based on WIBOR/EURIBOR/LIBOR/PRIBOR increased by the margin. According to the Acquired Agreement the interest rate of the loan is dependent on the net debt/EBIDTA ratio. Also other loan conditions  do not differ from market conditions.

Contact for Investors

Dariusz Choryło

Director of Investor Relations
dariusz.chorylo@pkobp.pl

Investor Relations Department
ir@pkobp.pl