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Important agreement for JSW

In the presence of Minister of Energy Krzysztof Tchórzewski in Warsaw - an agreement was signed between the Management of Jastrzębska Spółka Węglowa (JSW) and the Bondholders - PKO BP SA, BGK, PZU SA, PZU Życie SA. It concerns the conditions for continued operation of JSW Group and repayment of bonds in the amount of PLN 700 million and 163.75 million US dollars (total about PLN 1.3 billion issued by JSW under an issuance program as constituted on 30 July 2014).

photo: Ministerstwo Energii

- We have had very difficult negotiations. Bondholders set high demands on the conditions for the further financing of the JSW Group. We managed to reach an agreement beneficial for both parties. Now we are well on the way to the stable development of JSW - says Energy Minister Krzysztof Tchórzewski.

The new timetable for the repayment of bonds was agreed as part of the agreement. It assumes reducing the amount initially agreed to repay the bonds in the initial period and extending the repayment period by five years, so by 2025.

- This gives us the financial breathing. It is a time in which we will be able to carry out optimization measures and investment effectively. We will conduct an action program which allows the Company to achieve positive financial results - adds Tomasz Gawlik, CEO of JSW. 

Bondholders also give up their rights, on the basis of the so-called put option contained  in the existing Bond Issue Program, understood as the possibility of early redemption of bonds with funds from the Eurobond issue. In addition, the JSW board agreed with bondholders on the restructuring roadmap that will be implemented by the Company in order to improve the financial result of the JSW Capital Group and achieve long-term profitability.