Decision taken by Cyfrowy Polsat S.A. to grant a loan to PAK-Polska Czysta Energia sp. z o.o. for further implementation of a wind project

14 Jun 2023

In view of the fact that:

  • Cyfrowy Polsat S.A (the “Company”) is a party to the preliminary agreement dated 20 December 2021, as amended, concerning the Company’s purchase of shares in PAK-Polska Czysta Energia sp. z o.o. with its registered office in Konin (“PAK-PCE”) representing 67% of PAK-PCE’s share capital, of which the Company informed in its current report no. 38/2021 dated 20 December 2021,
  • on 10 June 2022, PAK-PCE acquired 100% of shares in the share capital of Great Wind sp. z o.o. (the “Project Company”) in order to construct and operate an on-shore wind installation in the form of a group of 33 wind turbines within the commune of Człuchów, Człuchów county, Pomeranian Voivodeship, with the potential to construct a photovoltaic farm within the obtained connection capacity of the project (the “Investment Project”),
    • in order to enable financing of the Investment Project, the Company entered into a loan agreement with PAK-PCE, dated 10 June 2022, for an amount not exceeding PLN 236,400,000.00 and granted a surety for the Project Company's obligations under the wind turbine supply and installation agreement up to an amount not exceeding EUR 96,000,000.00, of which the Company informed in its current report No. 12/2022, dated 10 June 2022;

the Management Board of the Company hereby informs that on 14 June 2023 it decided to enter into another loan agreement between the Company, as the lender, and PAK-PCE, as the borrower, under which the Company will grant a loan to PAK-PCE up to an amount not exceeding PLN 175,000,000.00 (the "Loan Agreement").

The Loan Agreement will be concluded to finance subsequent payments to be made by the Project Company under, among others, agreements with suppliers and contractors including, among others, the wind turbine supply and installation agreement.

The Loan Agreement provides that the loan may be drawn in PLN or EUR. At the same time, the Loan Agreement stipulates that PAK-PCE may also obtain alternative forms of financing for the Investment Project and may potentially make an early repayment of the loan granted under the Loan Agreement. The interest rate on the loan is variable, based on WIBOR or EURIBOR, respectively. The financial terms and other terms of the Loan Agreement do not deviate from market conditions. The repayment date of the loan was set at 31 December 2025.

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Last updated 06/14/2023