Legal basis: Paragraph 5.1.3 of the Regulation of the Minister of Finance dated 19 February 2009 on current and periodic information published by issuers of securities and on the conditions under which such information may be recognized as being equivalent to information required by the regulations of law of a state which is not a member state – the conclusion of a material contract. The report: The Management Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna (the “Bank”) hereby announces that on 19 October 2010 the Bank concluded a loan agreement with its subsidiary, PKO Finance AB seated in Sweden (the “Issuer”), pursuant to which the Bank will borrow from the Issuer certain funds representing proceeds from the issue of EMTNs by the Issuer (the “Loan Agreement”). The Bank announced the establishment of the terms and conditions of the Issuer’s EMTN Programme in report No. 42/2010 dated 22 September 2010. The Bank is the sole shareholder of the Issuer. The Issuer is, within the meaning of the Polish Accounting Act, a subsidiary of the Bank. Under the Loan Agreement, the Issuer grants a loan of EUR 800,000,000 to the Bank, i.e. PLN 3,145,360,000, intended to be used for general financing purposes of the Bank. The loan bears interest at a fixed rate of 3.733% p.a. Interest is paid annually. The Loan Agreement was concluded for the term of five years. The loan is not secured. The Loan Agreement does not provide for any contractual penalties. To date, the Bank has not concluded any agreements with the Issuer meeting the criteria of a material contract. The Bank is required to announce the conclusion of the Loan Agreement as qualifying as a material contract since the amount of the loan meets the criteria referred to in paragraph 2.1.44 of the Regulation of the Minister of Finance dated 19 February 2009 on current and periodic information published by issuers of securities and on the conditions under which such information may be recognized as being equivalent to information required by the regulations of law of a state which is not a member state.
