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Execution of a significant credit facility agreement with the European Bank of Reconstruction and Development

Legal basis (selected in ESPI): Article 56 Section 1 Item 2 of the Act on Offering – current and periodic information

The Management Board of PKP CARGO S.A. (“Company”, “Borrower”) reports that a credit facility agreement has been executed on 23 December 2015 with the European Bank of Reconstruction and Development with its registered office in London (“Bank”) on whose basis an investment loan (“Loan”) will be made available to the Company up to a maximum value of EUR 100 million, earmarked to refinance the acquisition of AWT, which the Company reported in current report no. 30/2015 on 28 May 2015 (hereinafter: ”Credit Facility Agreement”).

According to the Credit Facility Agreement, the Loan will be available until 31 December 2016. This Loan may be originated in EUR or PLN as the Borrower elects. The Borrower is obligated to repay the Loan in semiannual installments according to the terms and conditions prescribed by the Credit Facility Agreement, where the full repayment of the Loan should take place by 25 September 2027.

The interest rate applicable to every utilization of the Loan is equal to the floating EURIBOR/WIBOR rate for 6-month deposits plus the Bank’s margin.

This Credit Facility Agreement contemplates the possibility of early Loan repayment without the Borrower having to remit any additional fees.

This Loan is not collateralized against the Company’s assets.

The Credit Facility Agreement’s other terms and conditions do not deviate from the terms and conditions generally applicable to similar credit transactions.

This agreement is classified as significant because of its value exceeding 10% of the Company’s equity. On the day preceding the publication of this current report, i.e. on 22 December 2015, the Borrower and its subsidiaries do not have any liabilities to the Bank.

Legal basis:
§ 5 section 1 item 3 and § 9 of the Finance Minister’s Regulation of 19 February 2009 on the current and periodic information transmitted by securities issuers and the conditions for recognizing the information required by the regulations of a non-member state as equivalent (Journal of Laws of 2014 Item 133).