Legal grounds: § 5 Section 1 Clause 3 of the Ordinance of the Council of Ministers of 25th March, 2005 on current and periodic reports released by issuers of securities. Text of the report: The Management Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna hereby announces that on 27th July, 2005 the Bank entered into a syndicated loan agreement with a PKO BP SA client („the Borrower”). The agreement concerns the granting of a syndicated loan to the Borrower by a consortium of six banks, including PKO BP SA, embracing tranche A in the amount of EUR 600 million and tranche B in the amount of EUR 300 million, with the possibility of drawdowns in EUR, USD or PLN. The share of PKO BP SA in the tranches is EUR 100 million and EUR 50 million respectively. The crediting period for tranche A of the loan shall be five years, and for tranche B three years. The interest on the said loan is based on EURIBOR rate, increased by the Bank’s margin for tranche A and EURIBOR, LIBOR or WIBOR, increased by the Bank’s margin for tranche B of the loan. The receivables under the loan granted have not been secured. The syndicated loan agreement envisages the fulfillment by the Borrower of standard conditions precedent for tranche A and tranche B to be made available. The aggregate value of the Bank’s agreements with the Borrower, as at the date of execution of the agreement, was EUR 192.86 million. The Borrower’s earlier debt to PKO BP SA in the amount of EUR 42.86 million shall be repaid within the framework of the new loan. This agreement should be deemed material as the aggregate value of performances under the long-term agreements with the Borrower meets the criteria set out in § 5 Section 1 Clause 52 of the Ordinance of the Council of Ministers of 25th March, 2005 on current and periodic reports released by issuers of securities. This agreement is a highest-value agreement. The agreement does not contain provisions concerning liquidated damages, the maximum amount of which may exceed the equivalent of at least 10% of the value of that agreement or at least the zloty equivalent of the amount of EUR 200,000 at the median exchange rate for the given currency for the day of execution of that agreement.
