Significant loan between subsidiaries

Tuesday, 09 June, 2015
19/2015

The Management Board of KGHM Polska Miedź S.A. (“KGHM”) announces that on 8 June 2015 an indirect subsidiary of the Company, 0929260 B.C. UNLIMITED LIABILITY COMPANY, advanced a loan in the amount of USD 519 375 000 (the equivalent of PLN 1 941 475 688, according to the average exchange rate of the National Bank of Poland for USD/PLN of 8 June 2015) to its wholly-owned subsidiary KGHM INTERNATIONAL LTD. for the early redemption of the senior notes issued by KGHM INTERNATIONAL LTD. in 2011. The funds for this loan were transferred by KGHM under the financing described in the current report no. 17 dated 25 May 2015. 

The loan, which has a maturity date of 31 December 2021, is secured by a demand promissory note issued by KGHM INTERNATIONAL LTD. 

The total value of loans granted by 0929260 B.C. UNLIMITED LIABILITY COMPANY to KGHM INTERNATIONAL LTD. over the last 12 months amounts to USD 719 375 000 (the equivalent of PLN 2 689 095 688, according to the average exchange rate of the National Bank of Poland for USD/PLN of 8 June 2015) and exceeds 10% of KGHM’s equity. The above-mentioned loan is the highest in value among all of the loans granted during this period. The companies did not enter into any other agreements over the last 12 months that would result in a transfer of funds between them.

Legal basis: § 5 sec. 1 point 3 of the Decree of the Minister of Finance dated 19 February 2009 regarding current and periodic information published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state (unified text: Journal of Laws from 2014 No. 133).