Report no.: 18/2014

Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.

 

SUBJECT: Concluding an agreement establishing a mortgage for mBank S.A.

 

CONTENT OF THE REPORT:

On June 17th, 2014 Izostal S.A. (Company) concluded an agreement establishing a mortgage (Agreement) with mBank S.A. (Bank) with its registered office in Warsaw.

 

The agreement was concluded to secure the Bank's claims against Izostal S.A. on account of investment credit contract no 11/050/14/Z/GA dated June 17th, 2014 on PLN 5.000.000,00. The credit was granted to finance the construction of a pipe warehouse located in Kolonowskie at Opolska Street.

 

To secure the repayment of the loan, interest, commissions, fees and other auxiliary charges on said loan, according to the terms and conditions of the said Agreement, the Company is obliged to establish for the Bank a contractual mortgage up to PLN 6.500.000,00 on the Company's perpetual usufruct right to use the real property situated in Kolonowskie and on the Company's ownership of buildings and structures built on the said real property, for which rights the District Court in Strzelce Opolskie, 5th Division Land and Mortgage Register maintains Land and Mortgage Register KW No OP1S/00040617/8. Record value of these assets, as per accounting books of Izostal S.A. as on 31.05.2014 amounts to PLN 79.334.523,50.

 

Following the concluded Agreement a relevant mortgage shall be performed.

 

According to the Company's best knowledge there are no interrelations between Izostal S.A. and persons managing or supervising the Company and mBank S.A., for which the contractual mortgage was established.

 

The contractual mortgage has got a higher value than equivalent of the amount of EUR 1.000.000 expressed in PLN calculated at the average exchange rate, applicable at the day of concluding an agreement establishing a mortgage, thus it meets the criterion of significant values.

 

Specific legal basis: §5 clause 1 item 1 of the Ordinance of the Minister of Finance of February 19, 2009 on current and periodic information disclosed by the issuers of commercial papers and the conditions for recognizing as equivalent the information required by the laws of a non-member state (Journal of Laws No. 33, item 259 as amended).

 

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:

Management Board President, Marek Mazurek  2014-06-17

Management Board Vice President, Michał Pietrek 2014-06-17

 

INFORMATION ON THE ENTITY:

Full name of the issuer: IZOSTAL SPÓŁKA AKCYJNA

Abbreviated name of the issuer:  IZOSTAL S.A

Sector based on the classification of Warsaw Stock Exchange:  Other industry

Address: 47-120 Zawadzkie Polna 3

Telephone: (77) 405 65 00

Fax: (77) 405 65 01

e-mail:info@izostal.com.pl

www.izostal.com.pl

VAT No. [NIP]:756-00-10-641

Statistical No. [REGON]: 530884678