2010-07-07
Current report no 25/ 2010 - Entering into a significant agreement with the bank Pekao SA concerning the financing of A-4 Tarnów-Rzeszów highway section
The Management Board of HYDROBUDOWA POLSKA S.A. ("Borrower") informs that on 6 July 2010 it entered, jointly with PBG capital group companies i.e.
PBG SA and APRIVIA SA (“Joint debtors”), into the agreement establishing the credit line for financing the execution of contract “Construction of A-4 Tarnów–Rzeszów highway, from Krzyż junction to Dębica Pustynia junction, km 502+796,97 to ca. 537+550”, with the bank Polska Kasa Opieki S.A., with its registered office in Warsaw.
The Parties agreed that the maximum total value of a line limit would be PLN 220 million in the form of the following bank product limits:
a) contract performance guarantee limit – to the amount of PLN 44 million, with the maturity date not later than 2 months after construction completion and in no case later than by 31.12.2012, and after reduction to the guarantee for defects and faults removal, it cannot exceed 13.200.000 within 62 months after the construction completion, and in no case later than by 31.12.2017;
b) credit limit – to the amount of PLN 176 million, whereby and to the debit of which it is admissible to issue guarantees or letters of credit in PLN or EUR up to the total amount being equivalent of PLN 40 million. The used amount of Credit and other issued Guarantees or Letters of credit shall not exceed the remaining part of the Contract of PBG S.A. Capital Group to be paid and in no case 2 months specified for final settlement after the construction completion, and in no case (including the option of prolongation) later than by 31.12.2012
The final date of the credit repayment is 30 June 2013.
Pursuant to the agreement the Companies shall be entitled to use the following bank products:
a) long-term guarantee of due performance of the contract in the amount of 5% of the Contract, which shall be then replaced by the guarantee of defects and faults removal in the amount of 1,5% of the Contract,
b) medium-term revolving credit in the form of overdraft and
c) short- and medium-term guarantees or letters of credit connected with the contract performance, including the advance payment refund guarantee.
The legal security for the credit shall be:
a) assignment of receivables;
b) power of attorney authorising to dispose of Companies’ accounts held in the Bank;
c) Borrower’s declaration of voluntary submission to enforcement, joint surety;
d) taking the Credit and the surety granted by PBG S.A. and APRIVIA S.A. together with a declaration of submission to enforcement or joint surety;
e) cash bond on the Bank’s account for the benefit of other guarantees or letters of credit of a maturity date exceeding, whatever reason, the period of Construction or the amount due to be paid by GDDKiA under the Contract.
The Agreement was entered into on the market terms and conditions.
HYDROBUDOWA POLSKA SA belongs to the PBG Capital Group.
The amount of equity of HYDROBUDOWA POLSKA SA is a criterion according to which this agreement is deemed significant.
Legal basis:
paragraph 5 subparagraph 1 item 3) of resolution dated 19 February 2009 on the current and periodical information submitted by the securities issuers and the terms and conditions whereby the information required by the regulations of a non-Member State are found equivalent.
