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 (the “Bank”) hereby informs that on 27 July 2007 the Bank entered into a CHF syndicated loan agreement with a consortium of banks. The loan, designated for general Bank financing purposes, will be granted on the following terms and conditions:
- The loan amount is to be CHF 950,000,000
- The loan term is to be five years, with two extension options, each time for one year, upon approval of each of the lenders,
- The loan is going to be unsecured,
- The loan will bear interest based on the CHF LIBOR plus a margin to be correlated with one-month, three-month or six-month interest period, as selected by the Bank during each period at the end of which interest is to be paid,
- The loan is to be used within up to 270 days of the date of the loan agreement,
- The principal is to be repaid in a one-off payment at the end of the loan term, and if the Bank extends the loan, it will be repaid in four equal installments of which the last one is to be paid at the end of the loan term,
- The Bank may prepay the loan upon an advance notice to the lenders.
The execution of the above agreement satisfies the prerequisites for the requirement to disclose the entering by the Bank into a significant agreement, since the total value of consideration under the above agreement meets the criteria referred to in para. 2.1.51 of the Ordinance of the Minister of Finance of 19 October 2005 on current and periodical information provided by issuers of securities.