Body of the Report:
The Management Board of Jastrzębska Spółka Węglowa S.A. ["JSW", "Company"], with reference to Current Report No. 28/2024, hereby reports that today it adopted a resolution on granting consent to increase the limit for redemptions of JSW Stabilization Closed-end Investment Fund ["FIZ"] Investment Certificates adopted for 2024 from PLN 1,300.0 million to PLN 1,800 million. Taking into account the previously granted consents, the FIZ redemption limit for 2024 amounts to a total of PLN 2,000 million.
In addition, the Management Board gave consent to redeem 19,415 Series E FIZ Investment Certificates with a total estimated value of approx. PLN 27.3 million and 407,947 Series F FIZ Investment Certificates with a total estimated value of approx. PLN 572.7 million. The estimates are based on the valuation as of 30 August 2024 and may differ from the actual values, which will be known only after the valuation made on the respective redemption date.
The monies obtained from the redemption of FIZ Investment 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.
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.