Body of the Report:
The Management Board of Jastrzębska Spółka Węglowa S.A. ["JSW", "Company”] hereby reports that today it adopted a resolution to give consent for redemption of 146.648 series A JSW Stabilization Closed-end Investment Fund Investment Certificates ["FIZ”] with a total estimated value of PLN 200 million and for further redemption of JSW Stabilization Closed-end Investment Fund Investment Certificates until the end of 2024 up to PLN 1,300 million, i.e. a total of PLN 1,500 million. The above estimates were based on the valuation as at 31 March 2024 and may differ from the actual values, which will be known only through the valuation made on the respective redemption date.
The monies obtained from the redemption of FIZ Certificates will be used both for the Company’s current operations and for investment activity.
FIZ was established by the Company to stabilize financial liquidity and curtail the impact of the risk of volatility of coal and coke prices on maintaining the continuity of the Group’s operations and investments. The carrying amount of the investments in the FIZ asset portfolio as at 31 March 2024 was PLN 5,718.7 million.
At the same time, the Company reports that, in accordance with JSW’s Articles of Association, the decision on redemption of FIZ Investment Certificates requires the consent of the Company’s Supervisory Board. JSW will report the fulfillment of this condition in a separate current report.
At the same time, the Company reports that, in accordance with the provisions of the syndicated Sustainability-linked loan agreement, the Company will not recommend the payment of any dividends and profit distributions unless the Company has not made any distributions from the FIZ in the 12 months preceding such recommendation. The Company's failure to perform this covenant constitutes an Event of Default under the agreement. Accordingly, in the event of redemption of the investment certificates referred to in this current report, the Company will be obliged, for a period of 12 months after each redemption, not to recommend the payment of dividends and profit distributions.
Legal basis: Article 17(1) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on Market Abuse and Repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.