Conclusion of a Framework Agreement with the European Bank for Reconstruction and Development

Wednesday, 19 June, 2019
23/2019

The Management Board of KGHM Polska Miedź S.A. (“Company”, “KGHM”), announces that on 19 June 2019 a Framework Agreement was concluded between the Company and the European Bank for Reconstruction and Development, or EBRD (“Framework Agreement”), related to the EBRD’s consideration of the acquisition of bonds which may be issued by KGHM in the first issue of bonds with a total maximum nominal value of PLN 2 000 000 000. The first issue will be under the Company’s Bond Issue Program with a total maximum nominal value of PLN 4 000 000 000, the establishment of which was announced by the Company via regulatory filing no. 19/2019 dated 27 May 2019 (see also regulatory filing no. 16/2019 dated 9 May 2019).

Under the Framework Agreement, the Company commits itself to act pursuant to the EBRD’s Performance Requirements and the EBRD’s anti-corruption guidelines.

The Framework Agreement obliges the Company, from the date of eventual acquisition of the Company’s bonds by the EBRD, to use the funds acquired through the bonds issue for the financing of selected investments advanced by KGHM.  

Conclusion of the Framework Agreement does not impose any obligation on the EBRD to acquire any bonds which may be issued by the Company. Moreover, the Company is not under any obligation towards the EBRD to issue bonds.

The Company’s final decision on the first issue of bonds and its terms will be made at the moment of adopting a relevant resolution by the Management Board of KGHM, which will be announced by the Company via a separate regulatory filing.

Legal basis: Art. 17 (1) of MAR (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 (Official Journal of the European Union dated 12 June 2014, no. L 173/1)

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