PannErgy : Extraordinary information

Budapest, 23 November 2017

PannErgy Plc's two subsidiaries, Miskolc Geothermal Ltd and and Kuala Ltd entered into investment loan agreements with a domestic credit institution in May 2013 and September 2014, in an amount of EUR 6.3 million and HUF 1.5 billion, respectively, and now the Company has decided on the refinancing of these loans with another domestic credit institution.

As a result of the agreement, the borrowers will have the option to rely on long-term funding lines in an amount of EUR 4.5 million and HUF 2.1 billion, respectively, accompanied by a HUF 200 million limit for short-term financing. The long-term loans have already been called off, and the earlier, market-based loans - disbursed beyond the NHP (Funding for Growth Scheme) program - have been concurrently repaid before the end of the tenor. The tenor of the new loans is 7 years, following a repayment profile aligned with the 10-year term of depreciation.

Owing to the new loan agreements, a part of the credit limit has been used for the refinancing of earlier loans, whereas another part, in an approximate amount of HUF 1 billion, can be utilized as a source for the concession investment in Győr by way of partly refinancing PannErgy Group's own contribution provided to the Miskolc projects. With respect to the part of the credit limits carrying variable interests, the borrowers will enter into interest rate swap (IRS) transactions with the lenders, and therefore the effective interest rate of the current loans will be fixed throughout the tenors of the loans. As a consequence of this refinancing move, the interest payables of Miskolc Geothermal Ltd and Kuala Ltd have considerably decreased.

PannErgy Plc

This announcement is published in Hungarian and English languages. In case of any contradiction between these two versions, the Hungarian version shall prevail.

H-1117 Budapest, Budafoki út 56. A lh. IV. em.

Hungary

South Buda Business Park

Cégjegyzékszám / Registered number: 01-10-041618 Telephone: +36 1 323 2383; Fax: +36 1 3232373

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