Sierra Gorda S.C.M. arranges an owner-guaranteed bank loan

Friday, 29 May, 2020
15/2020

The Management Board of KGHM Polska Miedź S.A. (“KGHM”) announces that on 29 May 2020, a bank loan agreement was signed between Sierra Gorda S.C.M (“Sierra Gorda”) and Bank Gospodarstwa Krajowego. The bank loan will be used to support the on-going activities of Sierra Gorda given the current macroeconomic situation caused by COVID-19. The bank loan agreement will come into force once the formal conditions precedent have been met. The bank loan agreement entered into by Sierra Gorda will be secured by a corporate guarantee issued by the owners of Sierra Gorda. The value of the guarantee granted by KGHM derives from the shares held in Sierra Gorda (55%) and from the total amount of the bank loan (USD 200 million) and amounts to USD 110 million (or PLN 443 million at the average exchange rate of the NBP dated 28 May 2020).

If the aforementioned bank loan agreement does not come into force, the Company will announce this fact in 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)

Newsletter email list: