Bank of China (Luxembourg) Poland Branch provides a zł80,762,500 PLN loan to Polimex Mostostal to finance its ongoing operations

Project narrative

On May 15, 2020, the Poland Branch of Bank of China (Luxembourg) S.A. (BOC Luxembourg) entered into a zł80,762,500 PLN non-renewable loan agreement with Polimex Mostostal S.A. — a Poland-incorporated construction and engineering company headquartered in Warsaw and listed on the Warsaw Stock Exchange with four Polish companies under a joint investment agreement owning 65.93% (16.4825% each): ENEA S.A., ENERGA S.A., PGE Polska Grupa Energetyczna S.A., and PGNiG Technologie S.A. — to finance its ongoing operations. The loan carried a maturity period of about 0.756 years (276 days), a final maturity date of February 15, 2021, and an annual interest rate based on WIBOR plus a margin. The loan was secured by (i.e. collateralized against) a transfer of Polimex Mostostal's receivables to Enea Wytwarzanie Sp. z o.o. related to the return of a guarantee for the proper performance of contract submitted in cash for the duration of the warranty period on the contract (expiring on February 15, 2021), a deposit in the amount of 10% of the loan granted, and the borrower's statement on voluntary submission to enforcement. The loan featured restrictions on the scope of business activity, trading in key assets and collateral, dividend payments, granting loans to entities external to borrower's capital group, or the obligation to maintain positive equity. The proceeds were to be used by the borrower to finance its ongoing operations. The receivables to Enea Wytwarzanie were to be used to repay the loan at maturity. BOC Luxembourg issued the loan on May 29, 2020. Polimex Mostostal repaid the loan on December 28, 2020.