Loan agreemnets
Loans granted, including loans to the Group’s related parties
Unless indicated otherwise, all loan agreements are denominated in PLN. Interest on the PLN-denominated loans accrues at variable rates based on WIBOR plus margin, and on the EUR-denominated loans at variable rates based on EURIBOR plus margin.
Intragroup loans
Loan agreement between Grupa Azoty KĘDZIERZYN and ZAKSA S.A.
On January 7th 2016, ZAKSA S.A. repaid a loan granted under the loan agreement of November 18th 2015. The repayment was effected by set-off of mutual claims under the loan agreement and the agreement for the provision of advertising services of October 9th 2015, for the services provided from January 1st to June 30th 2016.
On November 14th 2016, Grupa Azoty KĘDZIERZYN advanced to ZAKSA S.A. a PLN 500 thousand loan to finance day-to-day operations. The loan was repaid on January 16th 2017, by set-off of mutual claims under the loan agreement of November 14th 2016 and the agreement for provision of advertising services of October 9th 2015, on the due date of the invoice issued by ZAKSA S.A. for the provision of advertising services in the period from January 1st to June 30th 2017.
Loans advanced by the parent to Grupa Azoty KĘDZIERZYN
Under an intragroup financing agreement of April 23rd 2015, on January 25th 2016 Grupa Azoty KĘDZIERZYN’s request for a loan of PLN 2,770,232.50 was accepted. The loan is to be used to finance launch of continuous production of OXOPLAST® OT. The loan was disbursed on January 29th 2016.
Under the intragroup financing agreement of April 23rd 2015, following Grupa Azoty KĘDZIERZYN’s request for a loan of PLN 209,920 thousand for the financing of the investment project “New CHP plant at GA ZAK S.A. – Phase 1”, further tranches of the loan were disbursed, including:
- on March 31st 2016 − PLN 40,320 thousand,
- on June 30th 2016 − PLN 32m,
- on December 30th 2016 − PLN 5,632 thousand.
Annex to loan agreement between Grupa Azoty PUŁAWY and BBM Sp. z o.o.
On June 15th 2016, Grupa Azoty PUŁAWY and BBM Sp. z o.o. signed:
- Annex 1 to the consolidation loan agreement of December 23rd 2015, whereby security for the loan was created in the form of a registered pledge, blank promissory note and assignment of rights under an insurance policy,
- An agreement on creation of a registered pledge over movable property and an agreement on assignment of rights under an insurance policy, concerning security for liabilities under the consolidation loan agreement.
On September 29th 2016, BBM Sp. z o.o. made an early repayment of five instalments of the loan advanced by Grupa Azoty PUŁAWY, in an amount of PLN 555 thousand.
Loan agreement between Grupa Azoty POLICE and African Investment Group S.A.
On September 23rd 2016, Grupa Azoty POLICE executed a loan agreement with its subsidiary African Investment Group S.A. of Dakar under which it granted the subsidiary a loan of EUR 4,800 thousand (PLN 20,611 thousand at the mid rate quoted by the National Bank of Poland for September 23rd 2016). The loan was advanced for a period from September 23rd 2016 to the final repayment date, falling not later than 24 months after the date of the agreement. The purpose of the loan was to enable AFRIG S.A. to pay its liabilities to suppliers of goods and services and to continue its research and development activities. On December 22nd 2016, AFRIG S.A. repaid the loan, including the interest.
Loan agreement between Grupa Azoty PUŁAWY and Zakłady Azotowe Chorzów S.A.
In the period July−December 2016, Zakłady Azotowe Chorzów S.A. failed to pay to Grupa Azoty PUŁAWY seven PLN 560 thousand monthly instalments under the loan agreement of April 2nd 2014, and seven PLN 72 thousand monthly instalments under the loan agreement of March 13th 2015. As at December 31st 2016, Zakłady Azotowe Chorzów S.A.’s debt under the loans was PLN 42,452 thousand (principal), including PLN 4,424 thousand of past due instalments. Zakłady Azotowe Chorzów S.A. paid the due interest due in accordance with the respective agreements.
On December 22nd 2016, the management board of Zakłady Azotowe Chorzów S.A. requested the management board of Grupa Azoty PUŁAWY that the debt under the loans be consolidated and the repayment schedule be changed.
Annex to loan agreement between Grupa Azoty PUŁAWY and SCF Natural Sp. z o.o.
On December 27th 2016, Annex 1 to the PLN 600 thousand loan agreement of May 7th 2014 was signed. Under the Annex, the repayment schedule was changed and the loan term was extended. The agreement expires on June 30th 2022.
Loan agreement between Grupa Azoty POLICE and Supra Agrochemia Sp. z o.o.
Grupa Azoty POLICE disbursed further tranches of the loan originally advanced to Supra Agrochemia Sp. z o.o. in 2014:
- on July 21st 2016 − the fifth tranche of PLN 387 thousand, and
- on November 18th 2016 − the sixth tranche of PLN 250 thousand.
As at December 31st 2016, the total amount of the loan was PLN 12,237 thousand.
The loan repayment date was extended until December 31st 2017.
Loans advanced to third parties
Events after the reporting period
On February 3rd 2017, Grupa Azoty POLICE signed a PLN 1,230 thousand loan agreement with Pogoń Szczecin S.A. The loan was disbursed on February 6th 2017. The loan was repaid on March 14th 2017.
Loans granted, including loans to the Group’s related parties
Unless indicated otherwise, all loan agreements are denominated in PLN. Interest on the PLN-denominated loans accrues at variable rates based on WIBOR plus margin, and on the EUR-denominated loans at variable rates based on EURIBOR plus margin.
Intragroup loans
Loan agreement between Grupa Azoty KĘDZIERZYN and ZAKSA S.A.
On January 7th 2016, ZAKSA S.A. repaid a loan granted under the loan agreement of November 18th 2015. The repayment was effected by set-off of mutual claims under the loan agreement and the agreement for the provision of advertising services of October 9th 2015, for the services provided from January 1st to June 30th 2016.
On November 14th 2016, Grupa Azoty KĘDZIERZYN advanced to ZAKSA S.A. a PLN 500 thousand loan to finance day-to-day operations. The loan was repaid on January 16th 2017, by set-off of mutual claims under the loan agreement of November 14th 2016 and the agreement for provision of advertising services of October 9th 2015, on the due date of the invoice issued by ZAKSA S.A. for the provision of advertising services in the period from January 1st to June 30th 2017.
Loans advanced by the parent to Grupa Azoty KĘDZIERZYN
Under an intragroup financing agreement of April 23rd 2015, on January 25th 2016 Grupa Azoty KĘDZIERZYN’s request for a loan of PLN 2,770,232.50 was accepted. The loan is to be used to finance launch of continuous production of OXOPLAST® OT. The loan was disbursed on January 29th 2016.
Under the intragroup financing agreement of April 23rd 2015, following Grupa Azoty KĘDZIERZYN’s request for a loan of PLN 209,920 thousand for the financing of the investment project “New CHP plant at GA ZAK S.A. – Phase 1”, further tranches of the loan were disbursed, including:
- on March 31st 2016 − PLN 40,320 thousand,
- on June 30th 2016 − PLN 32m,
- on December 30th 2016 − PLN 5,632 thousand.
Annex to loan agreement between Grupa Azoty PUŁAWY and BBM Sp. z o.o.
On June 15th 2016, Grupa Azoty PUŁAWY and BBM Sp. z o.o. signed:
- Annex 1 to the consolidation loan agreement of December 23rd 2015, whereby security for the loan was created in the form of a registered pledge, blank promissory note and assignment of rights under an insurance policy,
- An agreement on creation of a registered pledge over movable property and an agreement on assignment of rights under an insurance policy, concerning security for liabilities under the consolidation loan agreement.
On September 29th 2016, BBM Sp. z o.o. made an early repayment of five instalments of the loan advanced by Grupa Azoty PUŁAWY, in an amount of PLN 555 thousand.
Loan agreement between Grupa Azoty POLICE and African Investment Group S.A.
On September 23rd 2016, Grupa Azoty POLICE executed a loan agreement with its subsidiary African Investment Group S.A. of Dakar under which it granted the subsidiary a loan of EUR 4,800 thousand (PLN 20,611 thousand at the mid rate quoted by the National Bank of Poland for September 23rd 2016). The loan was advanced for a period from September 23rd 2016 to the final repayment date, falling not later than 24 months after the date of the agreement. The purpose of the loan was to enable AFRIG S.A. to pay its liabilities to suppliers of goods and services and to continue its research and development activities. On December 22nd 2016, AFRIG S.A. repaid the loan, including the interest.
Loan agreement between Grupa Azoty PUŁAWY and Zakłady Azotowe Chorzów S.A.
In the period July−December 2016, Zakłady Azotowe Chorzów S.A. failed to pay to Grupa Azoty PUŁAWY seven PLN 560 thousand monthly instalments under the loan agreement of April 2nd 2014, and seven PLN 72 thousand monthly instalments under the loan agreement of March 13th 2015. As at December 31st 2016, Zakłady Azotowe Chorzów S.A.’s debt under the loans was PLN 42,452 thousand (principal), including PLN 4,424 thousand of past due instalments. Zakłady Azotowe Chorzów S.A. paid the due interest due in accordance with the respective agreements.
On December 22nd 2016, the management board of Zakłady Azotowe Chorzów S.A. requested the management board of Grupa Azoty PUŁAWY that the debt under the loans be consolidated and the repayment schedule be changed.
Annex to loan agreement between Grupa Azoty PUŁAWY and SCF Natural Sp. z o.o.
On December 27th 2016, Annex 1 to the PLN 600 thousand loan agreement of May 7th 2014 was signed. Under the Annex, the repayment schedule was changed and the loan term was extended. The agreement expires on June 30th 2022.
Loan agreement between Grupa Azoty POLICE and Supra Agrochemia Sp. z o.o.
Grupa Azoty POLICE disbursed further tranches of the loan originally advanced to Supra Agrochemia Sp. z o.o. in 2014:
- on July 21st 2016 − the fifth tranche of PLN 387 thousand, and
- on November 18th 2016 − the sixth tranche of PLN 250 thousand.
As at December 31st 2016, the total amount of the loan was PLN 12,237 thousand.
The loan repayment date was extended until December 31st 2017.
Loans advanced to third parties
Events after the reporting period
On February 3rd 2017, Grupa Azoty POLICE signed a PLN 1,230 thousand loan agreement with Pogoń Szczecin S.A. The loan was disbursed on February 6th 2017. The loan was repaid on March 14th 2017.