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Current reports

Current report 13/2016

Legal basis: Art. 17, par. 1 of MAR – confidential

Report Subject: conclusion of a significant credit agreement

The Management Board of the Company named J.W. Construction Holding S.A. with its registered office in Ząbki (the “Company”) hereby informs that on 03 October 2016 it concluded with Bank Ochrony Środowiska S.A. with its registered office in Warsaw (“Bank”), a revolving facility agreement referring to the amount of PLN 49,500,000 (forty nine million five hundred thousand) (“the Loan”).The loan was raised to finance and refinance the gross expenditure related to the Zielona Dolina (Stage II) investment (the “Investment”).The Investment involves the construction of 25 multi-family residential buildings comprising 567 housing units in Warsaw, near Ostródzka and Zdziarska streets along with the accompanying infrastructure including ground facilities and parking spaces in underground garages. The Investment is another stage of the construction of the housing estate developed by the Company in this part of Warsaw.Significant Loan Terms & Conditions:

  1. the final Loan repayment date was fixed at 31 March 2019.
  2. the interest rate is variable in monthly periods based on the base rate of WIBOR 3M plus the Bank's margin.
  3. legal collateral of the Loan:
  • The power of attorney, granted to the Bank, to the Company’s accounts related to the execution of the Investment, and to other accounts held by the Company in the Bank, not related to the handling of other eligible investments, and enabling the Bank to block the funds collected in the accounts in cases specified in the loan agreement;
  • A financial pledge with the competence clause, and a registered pledge on the Company's accounts related to the Investment except for The Open Housing Trust Account.
  • A blank promissory note of the Company together with a promissory note declaration.
  • A mortgage of up to 150% of the loan amount (PLN 74,250,000.00) on the property on which the investment is to be executed, which is covered by KW WA3M/00441105/7, together with the assignment of rights from the insurance contract related to construction risks during the execution of the project, and property insurance contracts following the end of the construction.
  • Assignment of receivables from the General Contractor Agreement.
  • The Company's declaration of being subject to enforcement in accordance with art. 777, § 1, item 5 of the code of civil procedure to the amount of PLN 74,250,000 (seventy four million two hundred fifty thousand) payable to the Bank as a collateral for the repayment of principal, interest and any other costs related to the repayment demands as regards the granted loan.

This agreement was considered to be relevant in the assessment of the Company.