Conclusion of a significant agreement - subordinated loan

22 December 2015

The Management Board of Bank BPH (the 'Bank' or 'BPH') announces that on 22 December 2015 the Bank concluded with GE Ireland CHF Funding Unlimited Company with seat in Shannon, Ireland ('GEI FUC') a subordinated loan agreement. Under this agreement GEI FUC will grant BPH a subordinated loan in amount of CHF 75 000 000 (i.e. equivalent of PLN 295,110,000.00 based on the average Polish Central Bank ('NBP') rate dated 22 December 2015). The agreement is concluded for the period from 23 December 2015 till 23 December 2022 and the interest rate on it is the sum of CHF LIBOR and margin. The terms of this agreement do not differ from market standards. Accounting of proceeds from the loan into the supplementary funds of the Bank (Tier II) requires approval of the Polish Financial Supervision Authority ('KNF').

During the last 12 months the Bank has concluded following agreements, whose current contractor is GE Ireland CHF Funding Unlimited Company (due to reorganization of General Electric Group):

  • a revolving credit agreement in a total amount not exceeding CHF 2 200 000 000 (i.e. equivalent of PLN 8,656,560,000.00 based on the average NBP rate dated 22 December 2015) about which the Bank has reported in the current report No. 23/2015 of 25 November 2015;
  • a loan amounting to CHF 150 000 000 (i.e. equivalent of PLN 590,220,000.00 based on the average NBP rate dated 22 December 2015) about which the Bank has reported in the current report No. 18/2015 of 12 October 2015;
  • a loan amounting to CHF 80 000 000 (i.e. equivalent of PLN 314,784,000.00 based on the average NBP rate dated 22 December 2015), about which the Bank has reported in the current report No. 13/2015 of 1 July 2015.

Furthermore GEI FUC is the contractor of the following agreements:

  • a loan amounting to CHF 800 000 000 (i.e. equivalent of PLN 3,147,840,000.00 based on the average NBP rate dated 22 December 2015) about which the Bank has reported in the current report No. 2/2014 of 20 January 2014;
  • loans amounting to CHF 2 350 000 000 (i.e. equivalent of PLN 9,246,780,000.00 based on the average NBP rate dated 22 December 2015) about which the Bank has reported in the current report No. 18/2014 of 5 September 2014.

The total Bank's engagement in the GE Group loans amounts CHF 3.38 billion (i.e. equivalent of PLN 13,299,624,000.00 based on the average NBP rate dated 22 December 2015) and PLN 675 million. GEI FUC as well as BPH belong to the General Electric Company Group.

The loans are recognized as significant because their total amount exceeds 10% of the Bank's own capital.

Legal basis:
§5. 1 point 3 of the Ordinance of the Minister of Finance dated 19 February 2009. On current and periodic information submitted by issuers of securities and conditions for recognizing as equivalent information required by laws of non-member state.

Bank BPH SA issued this content on 2015-12-22 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2015-12-22 16:57:09 UTC

Original Document: http://www.bph.pl/pl/investor_relations/announcements/2015/announcement_26_2015