Current report no 27 / 2012

Current report no 27 / 2012 - 18 May 2012 / 00:00

Conclusion of a credit agreement by Budimex Nieruchomości

The Management Board of Budimex SA reports that on 18 May 2012 Budimex Nieruchomości Sp. z o.o. (a wholly-owned subsidiary of Budimex SA) (the Borrower) entered with Getin Noble Bank SA (the Bank) into a credit agreement to finance and refinance a real property development project worth PLN 33,000,000.
At the same time, the Management Board of Budimex SA reports that this is another agreement entered into by Budimex Nieruchomości Sp. z o.o. with the same party in the last 12 months. The previous agreement was entered into on 17 October 2011 with respect to partial financing of the costs related to a real property development project.

  • Agreement value: PLN 39,500,000
  • Interest: based on Wibor 1M plus margin
  • Security:
    • Contractual mortgage with the highest priority, up to PLN 59,250,000.00, as a security with respect to the capital, the interest and other incidental sums due under the agreement, established to the benefit of the Bank on the right of perpetual usufruct of the real property,
    • Power of attorney with respect to the Borrower’s bank accounts kept by the Bank,
    • Transfer to the Bank of the claims under the agreement on the insurance of construction sites against construction and assembly risks, and, after this agreement has terminated, transfer of the financial claim under the agreement of insurance against fire and other random events, as entered into with an insurance company accepted by the Bank, for an amount not lower than the amount of current indebtedness under the loan,
    • Assignment to the Bank of claims under the agreements entered into by the Borrower with purchasers of residential and commercial premises and parking spaces constructed under the investment project.
    • Conditional assignment to the Bank of the Borrower’s claims under the agreement with the general contractor.
  • Final loan repayment deadline: 31 December 2014
  • The other terms and conditions of the agreement do not differ from standard provisions applied to this type of agreements.

The accumulated value of the two agreements entered into with the same party exceeds 10% of the equity of Budimex SA.