Investor relations

Report concerns:
Conclusion of a significant agreement

Report’s text:
Acting pursuant to section 5.1.(3) of the Ordinance of the Minister of Finance on current and periodical reporting by issuers of securities of 19 October 2005 (Journal of Laws No. 209, item 1744) (henceforth the Ordinance), J.W. Construction Holding S.A., with its seat in Ząbki, Poland (henceforth the Company) hereby reports that on 24 October 2008 the Company concluded an investment loan agreement in Polish zlotys for the amount of PLN 66,803,028 with PKO Bank Polski S.A., 15th Branch in Warsaw (henceforth the Bank) (henceforth the Agreement). The purpose of the loan is to finance the costs related to the “Czarny Potok” hotel investment project located in Krynica Zdrój, at ul. Czarny Potok 65 (henceforth the Investment Project). The loan repayment date is 31 December 2017. The interest rate is WIBOR 3M + the bank’s margin. The collateral includes a contractual mortgage in the amount of PLN 66,803,028 to secure the principal loan amount as well as a capped mortgage up to the upper limit of PLN 20,040,908 entered in the land and mortgage register no. NS1M/00007069/8, kept by the District Court in Muszyna, 4th Division of the Land and Mortgage Register. The loan will be disbursed in tranches. The loan shall be disbursed on condition that motions for the mortgages to be entered are paid for and filed to the District Court in Muszyna, 4th Division of the Land and Mortgage Register as well as documentation confirming the legally binding business combination of J.W. Construction Holding S. A. and PRZEDSIĘBIORSTWO TURYSTYCZNE “Czarny Potok” S. A.
The remaining contractual terms do not differ considerably from the terms generally used in this type of agreements.
The Agreement has been considered significant pursuant to section 2.1.(51a) of the Ordinance, as the value of the concluded Agreement exceeds 10% of the Company's equity.