Current report no : 10/2014
Report date : 5/5/2014
Abbreviated name : Ciech SA
Subject : The granting of a standby loan
Legal basis : Art. 56 section 1 point 2 of the Act on Offering – current and periodic information
Report :
CIECH S.A. (hereinafter also referred to as “the Issuer” or “the Company”) hereby informs you that on 5 May 2014, the Issuer granted a standby loan (hereinafter referred to, respectively, as: “the Standby Loan” and “the Loan”) to Soda Polska CIECH S.A., with a registered office in Inowrocław (hereinafter: “the Subsidiary”), to the value of PLN 160,000,000 (one hundred sixty million). The Issuer declared the granting of a loan to the Subsidiary to cover the costs of implementation of a project entitled “Intensification of soda production by 200 thousand tonnes per year” (hereinafter: “the Project”), implemented by the Subsidiary in Inowrocław. The Standby Loan constitutes the basis for an application by the Subsidiary for the obtainment of a permit for the conduct of a business activity in the territory of the Pomerania Special Economic Zone. The Standby Loan will remain valid for a period from 5 May 2014 to 31 December 2014. The Standby Loan does not specify the value of interest on the Loan. The condition for the conclusion of the Loan agreement is the obtainment by the Subsidiary of a permit to conduct a business activity in the territory of the Pomerania Special Economic Zone.
Total expenditure on the Project is anticipated at the level of PLN 265,000,000. The completion of implementation of the Project is anticipated by the end of 2016. The scope of the Project covers an increase in the production capacity, as far as sodium carbonate is concerned, by 200 thousand tonnes. The main condition for implementation of the Project is the provision by the current external supplier of an increased capacity of brine supply to the Subsidiary.
The Management Board of the Issuer, acting pursuant to § 21 section 2 point 8) of the By-laws of the Company has obtained the consent of the Supervisory Board of the Issuer to grant the Standby Loan. The criterion for considering the Standby Loan to be a significant agreement: § 2 section 1 point 44 letter a) of the Regulation of the Minister of Finance of 19 February 2009 regarding current and periodic information (…) - the object of the Standby Loan has a value of at least 10% of the equity capital of the Issuer.
Legal basis: Art. 56 section 1 point 2 of the Act of 29 July 2005 on Public Offering (…) and Public Companies, and § 5 section 1 points 3 and § 9, with reference to § 2 section 1 point 44 of the Regulation of the Minister of Finance of 19 February 2009 regarding current and periodic information (…).
Type of occurrence: § 5 section 1 point 3 of the Regulation of the Minister of Finance of 19 February 2009 regarding current and periodic information (…) - the conclusion of a significant agreement.
Signatures of the Company’s Representatives : Dariusz Krawczyk – President of the Management Board
