Current report no 14 / 2013

Current report no 14 / 2013 - 4 March 2013 / 00:00

Signing a standby overdraft agreement with Bank Zachodni WBK SA

The Management Board of Budimex SA announces that on 4 March 2013 a standby overdraft agreement was concluded with Bank Zachodni SA.
Under the above agreement the bank made available to Budimex a promised standby overdraft up to the amount of PLN 50,000,000 (fifty million zloty) until 3 March 2014.
On account of using the overdraft facility, the company will pay to the bank interest calculated as per the WIBOR1M base rate increased by the amount of the margin. As security for repayment of the amounts due to the bank under the above agreement, Budimex granted the bank a power of attorney to administer the company’s account maintained by the bank and made a representation regarding voluntary submission to bank enforcement under provisions of the Polish Banking Law Act.
Other terms and conditions are standard for this type of agreement.
Simultaneously, considering the fact that the above contract was entered into as part of the current credit limit, which had been used so far by Budimex to order the Bank to issue bank guarantees, the bank and the company signed an annex to the bank guarantee limit agreement, in which a new limit was established with regard to the issuance of bank guarantees at PLN 100,000,000 (one hundred million zloty).
Other provisions of the agreement remain unchanged.
The agreement value exceeds 10% of the equity of Budimex SA.