Report No. 59/2016

Legal basis – Article 17(1) of the MAR

Contents of the report:

 The Management Board of PKO Bank Polski SA (the “Bank”) hereby informs that on 7 December 2016 the Bank issued a commitment letter (the “Commitment Letter”) to one of the Bank’s clients (the “Client”), under which the Bank undertook to extend to the Client a loan in the amount not exceeding PLN 3,200,000,000 (say: PLN three billion two hundred million), for the purpose of financing the investment activities of the Client (the “Loan”).

The Commitment Letter agreed upon by the Bank and the Client provides that the Loan shall be extended based on a loan agreement, the contents of which shall be finally negotiated by 30 April 2017 (the “Loan Agreement”). The key terms of the Loan Agreement are specified in an appendix to the Commitment Letter and provide i.a. for establishing collateral of the Bank’s claims in the form of financial and registered pledges and for receiving by the Bank from the Client the Client’s statement on submission to enforcement.

The principles of issuing the Commitment Letter and the terms of the Loan Agreement are not different than the standard ones used by the Bank nor from the market terms and conditions applied in financing transactions with comparable credit risk profile.

The Commitment Letter is the first exposure of the Bank towards the Client and its subsidiaries under agreements concluded within the last 12 months. Thus the total value of the Bank’s exposure (including the value of the Loan Agreement) amounts to PLN 3,200,000,000 (say: PLN three billion two hundred million).

The Bank will inform about the execution of the Loan Agreement in a separate report.