Credit facility and loan agreements executed or terminated during the financial year

In 2014 and by the date of this Report, Grupa Azoty Group companies executed the following material credit facility agreements or annexes to facility agreements: 

Annex to investment credit facility agreement between the Parent and BGŻ S.A.

On January 14th 2014, the Parent and BGŻ S.A. executed an annex to the investment credit facility agreement of March 30th 2012 for financing of the modernisation of sulfuric acid unit, whereby individual payments were proportionately reduced to reflect partial use of the facility. 

Annex to receivables discounting agreement with mBank S.A.

On January 20th 2014, March 31st 2014 and June 23rd 2014, the Parent and mBank S.A. (formerly BRE Bank S.A.) executed annexes to the receivables discounting agreement of July 30th 2010, under which the financing limit was raised to EUR 18,000 thousand, the agreement’s term was extended until November 7th 2014, and the flexibility of settlements under the agreement was improved. 

On August 26th 2014, another annex was signed to increase the facility limit from EUR 18,000 thousand to EUR 20,000 thousand, extend the agreement’s term until September 23rd 2015 and reduce the debt service costs.

In addition, on September 24th 2014 the Parent and mBank S.A. executed a new receivables discounting agreement (concerning receivables from third parties) with the agreed limit of EUR 7,000 thousand, and the agreement’s term until November 1st 2014.

Multi-purpose credit facility agreement between Grupa Azoty POLICE, AIG and BNP Paribas Bank Polska S.A.

On February 18th 2014, Grupa Azoty POLICE and African Investment Group S.A. entered into a multi-purpose credit facility agreement with BNP Paribas Bank Polska S.A. The bank granted the borrowers (acting as joint borrowers) a receivables limit of up to EUR 8,000 thousand for the period until February 17th 2016. The limit may be used to finance day-to-day operations through an overdraft facility, letters of credit and bank guarantees. The interest rate on the facility is based on a variable 1M EURIBOR rate + the bank’s margin.

On September 26th 2014, the parties executed Amendment 2 to the multi-purpose credit facility agreement, under which the liabilities under the credit facility were transferred directly to African Investment Group S.A.       

Annex to multi-product facility agreement between Remzap Sp. z o.o. and Millennium Bank S.A.

On March 25th 2014, Remzap Sp. z o.o. signed an annex to the multi-product facility agreement (bank guarantees, working capital facility, guarantee limit) concluded on January 27th 2012 with Millennium Bank S.A. Under the annex, the amount of the facility limit was increased from PLN 1,500 thousand to PLN 2,000 thousand, with an option of to use the limit as support for contract guarantees. The facility’s term expired on January 26th 2015. 

Annex to overdraft facility agreement with PKO Bank Polski S.A.

On February 19th 2014, the Parent, acting also on behalf of the other Group companies, executed another annex to the virtual cash-pooling agreement. The scope of the agreement was extended to include Grupa Azoty SIARKOPOL.

On April 16th 2014, the Parent, acting also on behalf of the other Group companies, executed an annex to the overdraft facility agreement; the scope of the agreement was extended to include Grupa Azoty SIARKOPOL as a potential borrower and to adjust the amounts of available sub-limits to their most recent allocation for the period April 1st−October 1st 2014. Subsequently, under the agreement a new allocation of overdraft sub-limits was made by the Group for the period October 1st 2014−April 1st 2015. 

Annex to loan agreement between Grupa Azoty POLICE and Provincial Fund for Environmental Protection and Water Management (WFOŚiGW) of Szczecin

On April 29th 2014, Grupa Azoty POLICE signed an annex to a loan agreement concluded on December 18th 2012 with the Provincial Fund for Environmental Protection and Water Management (WFOŚiGW) of Szczecin. The annex defines new dates for loan payments and changes the settlement date. 

Annex to overdraft facility agreement between Grupa Azoty PUŁAWY and Bank Zachodni WBK S.A.

On May 30th 2014, Grupa Azoty PUŁAWY signed an annex to the overdraft facility agreement of December 29th 2009. The annex extended the facility term until May 31st 2015. The overdraft amount, unchanged at PLN 50,000 thousand, is to be used to finance day-to-day operations. 

Investment credit facility of Grupa Azoty POLICE with PKO Bank Polski S.A.

On June 13th 2014, Grupa Azoty POLICE entered into an investment credit facility agreement of PLN 50,000 thousand to finance the project to construct an exhaust gas treatment unit and upgrade the EC II CHP plant. The facility repayment date is December 31st 2022. Amounts drawn under the facility bear interest at a rate per annum equal to 3M WIBOR plus the bank’s margin.

On December 11th 2014, an annex to the credit facility agreement was signed to extend the term of the facility tranches. 

Repayment of Grupa Azoty ZAK S.A.’s investment credit facilities with PKO BP S.A.

On June 27th 2014, Grupa Azoty ZAK S.A. made an early repayment of all its liabilities under two PLN- and EUR-denominated investment credit facilities with Raiffeisen Bank Polska S.A. available under agreements of March 23rd 2011, which were used to finance the construction of the nitric acid production unit (TKV). The repayments were financed from surplus of own funds and released loan security, including:

• PLN-denominated loan: PLN 8,117 thousand of principal and PLN 82 thousand of interest;
• EUR-denominated loan: EUR 6,941 thousand of principal and EUR 39 thousand of interest.

Agreement with the Provincial Fund for Environmental Protection and Water Management concerning a loan for Zakłady Azotowe Chorzów S.A.

On September 12th 2014, Zakłady Azotowe Chorzów S.A. received a loan of PLN 1,381 thousand as de minimis aid from the Provincial Fund for Environmental Protection and Water Management in Katowice towards the cost of modernisation of its industrial wastewater treatment plant. The agreement was signed on May 27th 2014 and amended on September 3rd 2014. The loan was granted until December 15th 2017.

Factoring agreement under receivables discounting agreement between Grupa Azoty POLICE and Raiffeisen Bank Polska S.A.

Under the existing receivables discounting agreement with Raiffeisen Bank Polska S.A. of October 4th 2013 which provides, among other things, for a factoring arrangement to finance Grupa Azoty POLICE’s operations, on July 16th 2014 the company executed a separate factoring agreement.

Investment credit facility agreement of Grupa Azoty ZAK S.A.

On September 30th 2014, Grupa Azoty ZAK S.A. executed an investment credit facility agreement with Bank Gospodarstwa Krajowego S.A. for up to PLN 21,155 thousand to finance the launch of OXOPLAST® OT continuous-flow production, repayable by September 30th 2018. 

Overdraft facility agreement of Agrochem Puławy Sp. z o.o.

On October 8th 2014, Agrochem Puławy Sp. z o.o. executed an overdraft facility agreement with Pekao S.A. for up to PLN 4,500 thousand, repayable by October 31st 2015. 

Investment credit facility agreement of Grupa Azoty ZAK S.A.

On October 22nd 2014, Grupa Azoty ZAK S.A. executed an investment credit facility agreement with Bank Gospodarstwa Krajowego S.A. for up to PLN 256,000 thousand to finance the construction of a new CHP plant at Grupa Azoty ZAK S.A., repayable by June 30th 2024.

Overdraft facility agreement of Grupa Azoty ZAK S.A.

On October 22nd 2014, Grupa Azoty ZAK S.A. executed an overdraft facility agreement with Bank Gospodarstwa Krajowego S.A. for up to PLN 40,000 thousand, repayable by October 21st 2017.

Annex to overdraft facility agreement of Grupa Azoty PUŁAWY

On November 28th 2014, Grupa Azoty PUŁAWY and Bank Pekao S.A. signed an annex to the intraday overdraft facility agreement of May 14th 2010. Under the annex, the PLN 2,000 thousand facility’s term was extended until November 30th 2015.

Overdraft facility agreement between Agrochem Sp. z o.o. of Dobre Miasto and Bank Polska Kasa Opieki S.A.

On December 24th 2014, Agrochem Puławy Sp. z o.o. of Dobre Miasto executed an overdraft facility agreement with Pekao S.A. for up to PLN 5,000 thousand, repayable by December 31st 2016.

Material financing agreements executed or amended in 2014 or before the date of this Report

Source: Company data