The Management Board of KGHM Polska Miedź S.A. (“KGHM”, “Company”) announces that on 29 March 2021, a renewable revolving bank loan agreement was signed between Sierra Gorda S.C.M (“Sierra Gorda”) and Bank Gospodarstwa Krajowego with the maximum limit of USD 700 million (or PLN 2 751 million at the average exchange rate of the NBP dated 26 March 2021). The bank loan will be used to refinance the current debt and potentially to finance Sierra Gorda’s current activities. The funds from the bank loan agreement will be available once the formal conditions precedent have been met. Obligations arising from the bank loan agreement entered into by Sierra Gorda will be secured by a corporate guarantee issued by the owners of Sierra Gorda (KGHM Polska Miedź S.A., Sumitomo Metal Mining Co., Sumitomo Corporation).
The value of the guarantee which KGHM will be obliged to grant derives from the shares held in Sierra Gorda (55% share) and from the total amount of the bank loan (USD 700 million). The value of the guarantee issued by KGHM will amount to USD 385 million (or PLN 1 513 million at the average exchange rate of the NBP dated 26 March 2021).
If the aforementioned conditions precedent are not met, 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)