POLNORD : Decision on the issue of series NS4 Bonds

52/2016

Current report No. 52/2016

Date: 2016-12-01
Time: 5:13 p.m

Subject: Decision on the issue of series NS4 Bonds

Legal basis: 17(1) of the Market Abuse Regulation - confidential information

The Management Board of POLNORD SA (the "Company") informs that on 1 December 2016 it adopted a resolution regarding the issue of up to 20 000 (twenty thousand) series NS5 bearer bonds, with a nominal value of PLN 1 000.00 (one thousand) each, with a total nominal value of PLN 20 000 000.00 (twenty million) (the "Bonds").
The interest rate for the Bonds shall be variable and equal to 6M WIBOR plus margin for each interest period. The interest shall be payable every 6 months.
The Bonds can be redeemed in the period of 36 months from the issue date, subject to the cases of early redemption.
The Company will have the right to the early redemption of the Bonds against payment of additional cash benefit (bonus) calculated on the basis of the nominal value of the Bonds being subject to a particular early redemption, according to the following specification:
a) 1.00% (100/100 p.p.) of the nominal value of the redeemed Bonds in the case of redemption within I and II interest periods;
b) 0.50% (50/100 p.p.) of the nominal value of the redeemed Bonds in the case of redemption within III and IV interest periods;
c) 0.20% (20/100 p.p.) of the nominal value of the redeemed Bonds in the case of redemption within V interest period.

The purpose of the Bonds issue is to raise funds for the implementation of development investments and partial refinancing of the existing debt of the Company.
The bonds shall be issued as unsecured. After the issue date, a joint mortgage shall be established on the properties of the Issuer.
At the same properties will also be established a mortgage - with the same priority of satisfaction, in order to secure the claims of bonds NS4, which will be issued on the basis of resolutions of the Issuer's Management Board of 29 November 2016, about which the Company announced in the current report No. 51/2016 dated 29.11.2016.
The bonds shall be the subject of the application for their admission to the ASO Catalyst.
The Bonds issue shall be offered in a private placement, in accordance with Article. 33 (2) of the Bonds Act of 15 January 2015.
Information about the allocation of the Bonds, the Company will provide in a separate current report.

Legal basis: Art. 17 (1) of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on market manipulation, and repealing Directive 2003/6/WE, 2003/124/WE, 2003/125/WE and 2004/72/WE.

SIGNATURES OF THE COMPANY'S REPRESENTATIVES

2016-12-01 Dariusz Krawczyk President of the Management Board
2016-12-01 Jerzy Kotkowski Member of the Management Board