Current Report No.: 10/2019

Commencement of negotiating the terms of and conditions of procuring financing by the Company

Current Report No.: 10/2019

Date of preparation:

Abbreviated name of the Issuer: CIECH S.A.

Subject: Commencement of negotiating the terms of and conditions of procuring financing by the Company

Legal basis: Art. 17.1 of the MAR – inside information

Text of the Report:

The Management Board of CIECH S.A. with its registered seat in Warsaw (the “Company”), in reference to the resolution of the Extraordinary General Meeting of 28 January 2019 concerning the consent for the Company to secure financing (the “EGM Resolution”) (of which the Company informed in the current report No. 4/2019 of 28 January 2019), informs that, today, in connection with the receipt of commitment letters from select financial institutions concerning granting secured financing to the Company, it made the decision to commence negotiations with select financial institutions of the terms of granting to the Company three-year EUR or PLN denominated revolving facilities providing for the option of obtaining financing equivalent to the amount of up to PLN 500,000,000 (the “Facilities”). 

The principal terms of granting the Facilities proposed by the financial institutions are fundamentally the same (except for margin and financing period) as the terms of granting a revolving facility under a senior and revolving facilities agreement (the “Consortium Facilities Agreement”) of which the Company advised in the current report No. 38/2015 of 30 October 2015, and in the current reports No. 1/2018 of 9 January 2018 and No. 5/2018 of 6 April 2018. If the Facilities are obtained, the Facilities will be secured with a joint security package that would secure, inter alia, the receivables under the Consortium Facilities Agreement, as a part of and in relation to the authorisation granted in the EGM Resolution.

The negotiations are to be completed by the conclusion of one or several agreements concerning the granting of the Facilities with one or all of the financial institutions or the Company foregoing the signing of the documentation and obtaining the financing.

The potential obtainment of the Facilities is related to the achievement by the Company’s group of the strategic goals set out in the Strategy of the CIECH Group for 2019-2021 published in the current report No. 34/2018 of 5 December 2018, and will enable to tailor the corporate financing structure to the investments in progress by replacing some of the short-term financing with long-term financing.

Legal basis: Article 17(1) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC – inside information

Signatures of the persons representing the Company:

Dawid Jakubowicz – President of the Management Board 

Artur Osuchowski – Member of the Management Board

Do góry