BGK will grant a working capital loan to KGHM in the amount of USD 450 million

Luc Williams

The Management Board of KGHM Polska Miedź has consented to concluding an unsecured working capital loan agreement with Bank Gospodarstwa Krajowego (BGK) in the amount of USD 450 million for a financing period of up to 60 months, with the possibility of extending it for another 24 months, the company announced. The signing of the contract is scheduled for February 26, 2024.

In accordance with the provisions of the contract the loan can be used in USDand the funds obtained from the loan will be allocated to financing general corporate purposes, reported. The agreement replaces the loan agreement with BGK from 2019.

Revolving credit line

“During the loan period, i.e. 36 months from the date of signing the contract, the loan takes the form of a revolving credit line (each repayment renews the granted credit limit) and starting from the first day after 36 months from the date of signing the agreement, the loan will be converted into a non-revolving loanrepaid in four equal half-yearly capital installments (unless it is extended under the conditions described below). Each repayment of the capital installment will reduce the loan amount until its full repayment,” we read in the statement.

With extension options

“In addition, he has a loan 2 options for extending the availability period in the form of a revolving credit line: :

• 1st extension option for another 24 months submitted at the company’s request after 30 months,

• 2nd option of extension for another 24 months submitted at the company’s request after 54 months,” we read further.

Credit terms

The company also announced that the loan interest rate was determined based on the SOFR base rate increased by a margin depending on the level of the financial ratio net debt/EBITDA. Other credit terms are in line with standard terms and conditions for this type of transaction.

KGHM Polska Miedź has a broad portfolio of exploration, development and production projects in Poland, Germany, Canada, Chile and the USA. The company has been listed on the WSE since 1997; is included in the WIG20 index. In 2022, it had PLN 33.85 billion of consolidated revenues.



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