Concluding a significant contract – forward contracts.
The Management Board of Polimex-Mostostal S.A. informs that on 5 May 2010 the Issuer signed confirmations of concluding 2 series of forward contracts with Deutsche Bank Polska S.A. in order to secure the currency exchange risk related to execution of foreign currency income from export contracts. The total nominal amount of these contracts is EUR 7,072,000.00 (say: seven million seventy two thousand euro). The settlement of the contracts shall be performed on 9 dates between June 2010 and March 2011. The value of Polimex-Mostostal’s equity is the criterion based on which the bank guarantee contract has been considered as a significant contract.
The total value of all forward transactions concluded by the Issuer in the last 12 months pursuant to the framework contract of 24 October 2008 concluded with Deutsche Bank Polska S.A. was EUR 29,055,000.00 (say: twenty nine million fifty five thousand) EURO.
Transactions were concluded at arm’s length and their terms did not significantly differ from terms generally applied in this type of financial operations.