Current report no. 5/2021
Conclusion of a loan agreement for financing an investment project at Konin Power Plant
Art. 17 item 1 MAR – inside information
Contents of the report:
Zespół Elektrowni Pątnów-Adamów-Konin SA ("Company", "Borrower") informs that on January 29, 2021 the Company concluded a loan agreement with Bank Polska Kasa Opieki SA ("Agreement"), on the basis of which the Company will be granted a loan in a total amount of up to PLN 160 million ("Loan"), intended for financing the investment project. The aim of the project is to adapt the existing coal-fired unit located on the premises of the Konin power plant to biomass combustion ("Project"). The modernized 50 MWe installation will produce electricity and act as a backup for the already operating biomass unit, supplying heat to the city of Konin. After the completion of the project, the power generation at Konin Power Plant will be approx. 100MWe (2x50MWe) using biomass as the primary fuel.
Pursuant to the Agreement, the loan amount is up to PLN 160 million, and the Company undertook to contribute its own share from its own funds, in the amount of at least 20% of the Project costs, but not less than PLN 52.8 million. The loan may be used no later than December 31, 2021. The Borrower is obliged to repay the Loan with interest and other amounts due under the terms of the Agreement, with the full repayment of the Loan by December 31, 2030.
In order to secure the repayment of receivables under the Loan Agreement, the Company has established collaterals required by the Loan Agreement, i.e. a mortgage on the indicated properties of Konin Power Plant; financial and registration pledge on bank accounts maintained by the Company at Bank Pekao S.A. and power of attorney to each of the above bank accounts; transfer as security under insurance policies of the property of Konin Power Plant and assignment of receivables from heat supply contracts for the city of Konin and the Company's declaration of submission to enforcement pursuant to Art. 777 § 1 point 5 of the Code of Civil Procedure.
The interest rate applicable to each use of the Credit is equal to the annual interest rate, which is the sum of the margin specified in the Agreement and the relevant WIBOR rate.
The Bank is entitled to commissions for granting the loan, the amount of which has been set at a level not deviating from market rates.
The other obligations of the Borrower under the Agreement do not differ from those commonly used in similar loan transactions, in particular with regard to maintaining selected financial ratios at the level specified in the Agreement.
Signatures of persons representing the Company:
Piotr Woźny – President of the Management Board
Maciej Nietopiel – Vice President of the Management Board