Powszechna Kasa Oszczednosci Bk Plski : Report No. 51/2017 – Execution of a guarantee agreement

Legal basis:

Article 17(1) of the MAR

Contents of the report:

The Management Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna (the 'Bank') hereby informs that on 21 December 2017, after having obtained the required corporate approvals, the Bank concluded a guarantee agreement with a counterparty providing for unfunded credit protection with respect of a portfolio of selected corporate exposures of the Bank, within the meaning of the Capital Requirements Regulation, CRR (the 'Guarantee').

The total value of the portfolio covered under the Guarantee amounts (after rounding) to 5,494,727,567.36 PLN and the portfolio comprises of a portfolio of bonds, with a value of approximately 1,096,600,000.00 PLN ('Portfolio A') and a portfolio of other exposures, with a value of approximately 4,398,127,567.36 PLN ('Portfolio B'). The coverage ratio under the Guarantee is 90% - in respect of Portfolio A and 80% - in respect of Portfolio B, which means that the total amount of the Guarantee (after rounding) is 4,505,442,053.88 PLN. The maximum time of coverage under the Guarantee is 60 months, however the Bank is entitled to unilaterally terminate the Guarantee prior to the expiry of this period.