Current report no 10 / 2012

Current report no 10 / 2012 - 9 February 2012 / 00:00

Signing the contract by PNI Sp. z o.o. on providing insurance guarantees with Ergo Hestia SA

The Management Board of Budimex SA reports that on 9 February 2012, Przedsiębiorstwo Napraw Infrastruktury Sp. z o.o. (a 100% subsidiary of Budimex SA) concluded with Sopockie Towarzystwo Ubezpieczeń Ergo Hestia SA (“the Insurer”) a contract on providing insurance guarantees within the granted guarantee limit (“the Contract”).
Under the contract, PNI Sp. of o.o. may commission the insurer issuing the insurance guarantees to the limit of PLN 70,000,000.00 (seventy million Polish zloty). The limit is renewable. The established collateral under this contract is constituted by 10 blank promissory notes along with promissory note declarations. The insurer will not charge any fees in connection with signing the contract.
The agreement shall be concluded for an indefinite period of time and it may be terminated by either Party with 30 day notice.
Other terms of the Contract do not differ from terms commonly applied to this type of agreements.
The Contract value exceeds 10% of the equity of Budimex SA.