With reference to current report No. 17/2020 of 7 April 2020 the Management Board of CIECH S.A. (the “Issuer”) herewith informs that on 28 April 2020, the Issuer’s subsidiaries: CIECH Energy Deutschland GmbH, CIECH Soda Deutschland GmbH & CO KG and the Issuer, CIECH Sarzyna S.A., CIECH Pianki sp. z o.o., CIECH Soda Polska S.A. and CIECH Vitrosilicon S.A. entered into a supplier financing agreement (reverse factoring) (the “Agreement”) with BNP Paribas Bank Polska S.A. under which:.

(1) CIECH Energy Deutschland GmbH and CIECH Soda Deutschland GmbH & CO KG hereinafter jointly referred to as the “Recipients”;

(2) the Issuer, CIECH Sarzyna S.A., CIECH Pianki sp. z o.o., CIECH Soda Polska S.A. and CIECH Vitrosilicon S.A. hereinafter jointly referred to as the “Guarantors”;

(3) BNP Paribas Bank Polska S.A. hereinafter referred to as the “Factor”.

The conclusion of the Agreement fits in well with the Issuer's policy aimed at limiting risks related to the current market situation. Reverse factoring is to ensure an improvement in the Recipients’ liquidity. The conclusion of the Agreement is linked to the conclusion of the supplier financing  agreement by  the Guarantors and BNP Paribas Faktoring Sp. z o.o. (the “Agreement 2”) of which the Issuer informed in the current report No. 17/2020 of 7 April 2020. 

The subject matter of the Agreement is to define terms and conditions of cooperation with regard to financing the Recipients' suppliers, including conditions under which the Factor is to acquire amounts receivable from suppliers that have been designated by the companies defined as the Recipients.

The Agreement provides for two possible options in terms of payments to be made by the Factor with respect to the accounts receivable of the suppliers (at the discretion of the respective supplier): 

(1) repayment before the due date indicated in the VAT invoice issued by the supplier, the cost of the Factor’s financing, until the payment date, will be borne by the supplier and the Recipient’s repayment of their liabilities to the Factor made after the grace period,

(2) repayment on or before the due date indicated in the VAT invoice issued by the supplier and the Recipient’s repayment of their liabilities to the Factor after the grace period.

The Agreement grants the Recipients a total limit of PLN 50,000,000.00 (fifty million and 00/100 zlotys). This is a revolving limit. In the cases specified in the Agreement and in the period of notice, the Factor has the right to refuse to acquire accounts receivable.

The collateral for the repayment of the Recipients’ liabilities to the Factor under the Agreement is:

(1) joint and several liability of the Recipients for their liabilities to the Factor,

(2) joint and several liability of the Guarantors for the Recipients’ liabilities to the Factor which will be limited to PLN 62,500,000.00 (sixty two million five hundred thousand and 00/100 zlotys). 

The Agreement has been concluded for an indefinite period.

According to the terms of the Agreement and the Agreement 2, the total limit granted by BNP Paribas Bank Polska S.A. and BNP Paribas Faktoring Sp. z o. o. available to the Recipients and the Guarantors may not exceed: PLN 200,000,000.00 (two hundred million and 00/100 zlotys).  

Any other terms and conditions of the Agreement do not deviate from those commonly used in business transactions for this type of agreement.

Signatures of the Company’s representatives: