AAA

Current report:

Signing of a credit agreement by a subsidiary

Report number: 18/2010 day: 2010-08-03

Legal basis

Art. 56 paragraph 1 item 2 of the Public Offering Act - current and periodic information

Contents of the report:

The Management Board of Barlinek S.A. (hereinafter the "Issuer" or the "Company") hereby announces that on 3 August 2010 a credit agreement was negotiated and concluded (hereinafter referred to as the "Credit Agreement") between Barlinek Invest Ltd. (a Ukrainian subsidiary of the Issuer, hereinafter referred to as "Barlinek Invest") and the European Bank for Reconstruction and Development (hereinafter referred to as "EBRD"). On the basis of the Credit Agreement, the EBRD granted a loan to Barlinek Invest of EUR 10 million (hereinafter referred to as the "Credit"), which is equivalent to 39,875,000 PLN according to the NBP's average exchange rate published on 3 August 2010.

The interest rate on the Credit is fixed at the EURIBOR rate increased by the Bank's commission.

The credit will be used to finance Barlinek Invest's current operations.

The credit will be repaid by 8 December 2014.

EBRD also thereby increased the amount of financing granted to Barlinek Invest from EUR 48,424,966 to EUR 58,424,966 EUR (which, at the date of conclusion of the Credit Agreement, is equivalent to 193,094,551.93 PLN and 232,969,551.93 PLN respectively).

As collateral for the Borrower's liabilities arising from the Credit Agreement, the parties agreed, inter alia:

- mortgages on property owned by Barlinek Invest and Barlinek Ukraine Ltd. (Ukrainian subsidiary of the Issuer, hereinafter referred to as "Barlinek Ukraine")

- pledge on machinery and equipment belonging to Barlinek Invest,

- pledges on the shares: Barlinek Invest, Barlinek Ukraine and Barlinek Cyprus Limited (Cypriot subsidiary of the Issuer, hereinafter referred to as "Barlinek Cyprus")

- cession of Barlinek Invest's rights from commercial contracts, contracts for building work, and insurance policies,

- the Issuer's Guarantee for the obligations arising from the Credit Agreement,

- pledges and powers of attorney to the bank accounts of Barlinek Invest, Barlinek Ukraine and Barlinek Cyprus.

A precedent condition for payment of the credit is, among other things, registration of the Credit Agreement at the National Bank of Ukraine and the establishment of the aforementioned safeguards.

The Credit Agreement contains no provisions relating to contractual penalties. This conditions of the agreement do not differ from those generally applied in such agreements.

The criterion for recognising the Credit Agreement as significant is the equity value of the Issuer.

Legal basis: § 5 section 1 point 3 of the Ordinance of the Minister of Finance of 19 February 2009 regarding current and periodic information to be submitted by issuers of securities and the conditions for recognition as equivalent of the information whose disclosure is required under the laws of a state which is not an EU member state (Journal of Laws No 33/2009, item 259).