The Management Board of KGHM Polska Miedź S.A. (“the Company”) announces that on 11 September 2024 the Company’s Management Board adopted a resolution on consenting to issue a corporate guarantee to secure liabilities of Sierra Gorda S.C.M. (“Sierra Gorda”) due to Sierra Gorda’s planned conclusion of a revolving credit facility agreement with a bank consortium.
The realisation of liabilities under the aforementioned revolving credit facility agreement will be secured by the corporate guarantee issued by both owners of Sierra Gorda. The maximum value of the guarantee issued by the Company derives from the shares held in Sierra Gorda (55%) and from the total value of the credit facility (up to the amount of USD 500 million) and will amount to up to USD 275 million (or PLN 1 067 million per the NBP’s average exchange rate on 10 September 2024).
The funds acquired through the aforementioned financing will be used to refinance the current external debt due to the bank loan granted to Sierra Gorda by Bank Gospodarstwa Krajowego, as well as for ongoing activities of Sierra Gorda.
The funds from the revolving credit facility agreement may be paid out once all the formal conditions precedent have been met. Moreover, the Management Board of KGHM Polska Miedź S.A. announces that the Company will publish a separate regulatory filing if the aforementioned revolving credit facility agreement is not concluded by 30 September 2024 or if the conditions precedent to paying out the funds due to the credit facility are not met.
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)