CONCLUSION OF CREDIT AGREEMENT FOR THE STRZELINO PHOTOVOLTAIC FARM PROJECT

The Management Board of the company operating under the business name Polenergia S.A. (“Issuer”) hereby reports that on 16 May 2023, the Issuer’s subsidiary – Polenergia Obrót 2 Sp. z o.o., developing the Strzelino photovoltaic farm project with a total installed capacity of 45.2 MWp, as the borrower (“Borrower”) and mBank S.A., Pekao S.A. and PKO Bank Polski S.A. as the lenders (“Lender”), concluded a credit agreement (“Credit Agreement”).

Based on the Credit Agreement, the Lender will grant the Borrower:

• Term credit facility up to the total amount of PLN 90,000,000.00, intended for financing the construction of the Strzelino photovoltaic farm, with an option of increasing the Borrower’s engagement (after fulfilment of additional terms specified in the Credit Agreement);
• VAT credit facility in the total maximum amount of PLN 27,000,000.00, and;
• DSR credit facility in the total maximum amount of PLN 9,800,000.00.

In relation to the Credit Agreement, the Borrower and the Issuer are required to enter into a standard security package applied in the project finance type transactions. The Borrower has submitted a declaration on submission to enforcement and established a registered pledge on a set of movables and titles, while the Issuer has established a registered and financial pledge on the shares in the Borrower and submitted declarations on submission to enforcement.

The Credit Agreement stipulates repayment of the term credit facility not later than by 16 December 2038, VAT credit not later than by 31 May 2024 and DSR credit not later than by 16 December 2038. The interest rate on credit facilities is determined on the basis of the WIBOR reference rate, increased by the Lender’s margin.

The terms of the Credit Agreement, including with respect to securities, contractual penalties, launching financing and termination of the Credit Agreement, correspond to the provisions applied in transactions of this type.

The Issuer will not update the information presented in this report, unless new confidential information has been identified within the meaning of Regulation of the European Parliament and Council (EU) No. 596/2014 on market abuse and repealing Directive 2003/6/EC of the European Parliament and Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Journal of Laws of the European Union L of 2014, No. 173, p. 1 as amended, the “MAR”).

Legal basis: Art. 17(1) of the MAR.