Ciech S.A.

Capital/Financing Update • Dec 28, 2020

he Management Boardof CIECH S.A. with its registered office in Warsaw (the "Company" or"Issuer") herewith informs that today it has made a decision to begin(together with some of the Company's subsidiaries) negotiationsconcerning a new loan agreement with selected banks and financialinstitutions in order to obtain new financing. At present, theManagement Board provides for the following basic terms and conditionsof such new financing:

(a)total amount: PLN 2 115 million (or itsequivalent);

(b)currency: PLN and/or EUR;

(c)term: 5 years;

(d)form: amortised term loan PLN 560 million,non-amortised term loan (PLN 1.305 million) and revolving creditfacility PLN 250 million;

(e)required financial ratios (covenants):maintaining the threshold level of the financial ratio (net debt tooperating result increased by depreciation (EBITDA) at a level notexceeding 4,0x;

(f)interest: variable interest rate determined onthe basis of the WIBOR/EURIBOR base rate increased by margin, the levelof which depends on the level of the net debt to operating resultincreased by depreciation (EBITDA);

(g)purpose: to refinance the existing financialdebt of the Company's Group (the "Refinanced Debt"), to finance therefinancing expenses, and to finance the general corporate objectives ofthe Company and certain companies from its Group. The Refinanced Debtincludes loans with a total value of approx. PLN 2 102 million (valueexpressed in PLN converted according to the NBP exchange rate of28.12.2020), granted in the form of:

- bilateral loansextended on the basis of loan agreements of 18.04.2019, with a totalvalue of PLN 505 million, the conclusion of which was announced by theCompany in its Current Report No. 13/2019 of 18.04.2019;

- syndicated loanswith a total value of PLN 1 597 million, extended under a loan agreementof 29.10.2015, the conclusion of which was announced by the Company inits Current Report No. 38/2015 of 30.10.2015, as amended by the annexdated 9.01.2018, the execution of which was disclosed by the Company inits Current Report No. 1/2018 of 9.01.2018.

The Management Boardhas decided to commence negotiations on the terms and conditions of newfinancing due to favourable conditions on the banking market.

The negotiationscould end in the conclusion of an agreement for the extension of loanswith selected financial institutions or the Company's withdrawal fromexecuting the documentation and obtaining such financing.

Legal basis: Article17.1 of the Regulation of the European Parliament and of the Council(EU) No 596/2014 of 16 April 2014 on Market Abuse (the Market AbuseRegulation) and repealing Directive 2003/6/EC of the European Parliamentand of the Council and Commission Directives 2003/124/EC, 2003/125/ECand 2004/72/EC (Official Journal of the European Union L No 173, p. 1).