BBI Development S.A. — Capital/Financing Update 2019

Dec 18, 2019

UNOFFICIAL TRANSLATION: Current report No. 58/2019p="#DEFAULT">

Date of preparation: 2019-12-18

Short name of the issuer: i2 Development S.A.

Subject: Change of terms of the issue of series Cbonds and the issue of series I bonds

Legal basis:

Article 17 para. 1 MAR - confidential information.

Management Board of i2 Development S.A. (hereinafterthe "Company", "Issuer") hereby informs, that

1) on December 17, 2019, the Company adopted aresolution on changing the Terms of Issue (hereinafter "WEO") of SeriesC Bonds issued by the Company on January 5, 2017 with the value of PLN1,000 each bond (hereinafter "Bonds C");

2) the Company concluded an agreement on changes inWEO with the bondholder of all Bonds C.

WEO changes affect:

1) extension of the final redemption date of Bonds C on April 5, 2020

2) total partial redemption of 14,700 C Bonds, set for December 27, 2019

3) the scope of established bond securities

Bonds C are secured by: (i) guarantees granted byGuarantors to the Security Administrator up to the amount of the productof the number of Bonds C covered by all Subscribers and 150 (one hundredand fifty)% of the nominal value of one Bond C; (ii) a joint contractualmortgage on the property constituting an undeveloped plot no. 30, withan area of ​​0.1244 ha, located at Powstańców Śląskich and WielkaStreets in Wrocław; (iii) a liabilities subordination agreement in favorof the collateral administrator resulting from loans granted tocompanies of the Issuer's Capital Group by entities related to theIssuer's main shareholder; (iv) the Issuer's declaration of submissionto enforcement in favor of the Bondholders.

Due to the extension of the date of redemption ofBonds C, the interest table was also changed by taking into account thesubsequent interest periods until the date of redemption of Bonds C.

At the same time, the Issuer's Management Board alsoinforms, that for the partial redemption of 14,700 Bonds C set forDecember 27, 2019, on December 17, 2019 the Company adopted a resolutionon the issue of 15,000 (fifteen thousand) covered bearer bonds markedwith the series letter "I", not in the form of a document, with anominal value of PLN 1,000.00 (one thousand) each bond and a totalnominal value of PLN 15,000,000.00 (fifteen million), bearing aninterest rate equal to WIBOR 3M (Warsaw Interbank Offered Rate) for 3-month deposits plus a margin not deviating from market conditions with amaximum maturity date of March 17, 2021 ("Bonds I").

Bonds I are secured by: (i) a joint contractual mortgage on the right ofperpetual usufruct of real estate constituting undeveloped plot no.2/25, with an area of ​​4674 m2, located at Grabiszyńska Street inWrocław and a joint contractual mortgage on the right of perpetualusufruct of real estate constituting undeveloped plot no. 3 / 10, withan area of ​​1294 m2, located at Al. Gen. Józefa Hallera in Wrocław (ii)a liabilities subordination agreement in favor of the collateraladministrator resulting from loans granted to companies from theIssuer's Capital Group by entities related to the Issuer's mainshareholder; (iii) the Issuer's declaration of submission to enforcementin favor of the Bondholders.

The Bond issue offer was directed pursuant to art. 33item 2 of the Act of 15 January 2015 on bonds (the "Act") to a financialinstitution, which also on December 17, 2019 made a declaration ofacceptance of the proposal to purchase the Bonds, for which, as aresult, the Management Board allocated the Bonds.

Signatures of persons representing the Company: