“Polimery Police” is one of the largest projects implemented under the project finance formula in Polish history. The funds necessary for its implementation will come in ca. 40% (USD 720 mln) from junior capital (equity and subordinated loans). The remaining ca. 60% of the budget, i.e. USD 1,075 mln will be covered by a long-term senior loan with recourse to the main sponsors - companies of the Grupa Azoty Capital Group - limited only to the guarantee of completion of construction in the amount of EUR 105 mln. In addition, the Company will be granted a VAT loan during construction and a revolving facility to finance working capital in the operating phase.

The process of securing financing for the “Polimery Police” project has entered its final stage. Regarding senior debt, the Management Board of the Company signed commitment letters with financial institutions confirming the submission of offers supported by consents of the credit committees. The group of financing institutions participating in the Project includes: PKO BP SA, Bank Pekao SA, Bank Gospodarstwa Krajowego, Alior Bank SA, PZU SA, Bank Ochrony Środowiska SA, Santander Bank Polska SA,BNP Paribas Bank Polska SA, European Bank of Reconstruction and Development, mBank S.A. and Industrial and Commercial Bank of China (Europe) S.A. Poland Branch. The total amount offered by these 11 financial institutions fully covers the Company's demand for senior debt financing.

 - The decisions of the financing institutions are another success of the Company in the financing process, after securing full equity amount. Of course, the process is still to be completed with the signing of equity and debt agreements, but the dynamics of the dialogue indicate that this will happen in the near future. - said Wojciech Wardacki, PhD, President of the Management Board of Grupa Azoty S.A. and Grupa Azoty Zakłady Chemiczne “Police” S.A.

Last year, the Company also acquired three equity investors: LOTOS Group, Hyundai Engineering Co., Ltd and Korea Overseas Infrastructure and Urban Development (KIND), which decided to invest a total amount of about PLN 1 billion in the project. The equity of the project is also funded by sources coming from Secondary Public Offering closed by Grupa Azoty Zakłady Chemiczne “Police” S.A., together with the contribution coming from initial investors – Grupa Azoty S.A. and Grupa Azoty Zakłady Chemiczne “Police” S.A..

* The amounts in USD corresponding to the values in EUR in which the Project budget is expressed (EUR 1.52 billion - as previously published) converted at the conservative EUR/USD exchange rate used in the banking model (approx. 1.19). The determination of the financing structure in USD is the result of talks with financial institutions and the adoption of a financial model in USD.