Conclusion of a significant contract.
The Polimex-Mostostal S.A. Management Board informs that it signed a Master Contract on01.12.2009 that provides for terms and conditions for cooperation with the PEKAO S.A. Bankin terms of credit and guarantee facility in order to finance infrastructure contracts to beperformed by Polimex-Mostostal S.A.
Within the Master Contract there will be specific contracts signed for issuing bank guaranteesin the amount of PLN 150,000,000.00 as well as for advancing credit under a running creditaccount in the maximum amount of PLN 50,000,000.00 for the purpose offinancing/prefinancing infrastructure contracts related to road construction, power industry andother similar projects that are directly or indirectly financed from the State Treasury, localbudgets or European Union funds. The Bank shall finance a contract within the credit facilityupon the condition that the contract is concurrently financed by the Bank within the guaranteefacility. The minimal bank guarantee is determined in the amount of PLN 20,000,000.00 andthe granted credit shall not exceed PLN 5,000,000.00 and shall amount up to 10% of the netvalue of the contract to be financed.
The maximum guarantee period: until 31 July 2015.
Credit maturity date: 31 July 2010.
The interest rates and guarantee fees have been determined at arm’s length. Pursuant to theprovisions of the Master Contract, each and every guarantee and credit application shall beapproved by the Bank.
The Contract has been deemed significant on the basis of the amount of the equity capitals ofPolimex-Mostostal S.A.
Legal basis: Art. 56 section 1 item 1 of the Act on Public Offering, Conditions for IntroducingFinancial Instruments into Organised Trading System and Public Companies inrelation to § 5 section 1 point 3, and in relation to § 9 of the Ordinance of theMinister of Finance of 19 February 2009 on current and periodic informationprovided by issuers of securities and the conditions for deeming equivalent theinformation required by the regulations of a non-Member State (Dz.U. –Journal of Laws of 2009 No. 33 item 259 as amended).