BBI Development S.A. — Capital/Financing Update 2020

Mar 5, 2020

UNOFFICIAL TRANSLATION:

Current report No. 16/2020

Date of preparation: 2020-03-05

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

Subject: Issue and allocation of series J bearerbonds and early, partial redemption of series C and F bonds

Legal basis: Article 17 para. 1 MAR - confidentialinformation

Management Board of i2 Development S.A. ("Company","Issuer") informs that on March 4, 2020 adopted a resolution on theallocation of 20,000 (twenty thousand) pieces of secured bearer bondsseries marked with the letter "J", not having the form of a document,with a nominal value of 1,000.00 (one thousand) PLN each bond and thetotal nominal value of PLN 20,000,000.00 (twenty million), bearing aninterest rate equal to WIBOR 3M (Warsaw Interbank Offered Rate) for3-month deposits increased by a margin not differing from marketconditions by maximum date of redemption: August 31, 2021 ("Bonds").

The Bonds will be secured by the highest prioritymortgage on real estate:

- located in Wrocław at Stalowa Street, the GrabiszynDistrict, covering a plot of land with registration number 4/2, theacquisition of which the Company announced in Current Report No. 15/2020of February 28, 2020;

- located in Wrocław at Grabiszyńska Street,Grabiszyn District, covering a plot with registration number 13/18, theacquisition of which the Company announced in current report No. 60/2019of December 20, 2019;

- located in Wrocław at Powstańców Śląskich Street,covering a plot of land with registration number 30

- located in Wrocław at Żegiestowska Street, GajDistrict, covering plots with registration numbers 23/8, 23/16, 23/17and 23/18, for which the Issuer has concluded a preliminary agreement,about which he reported in current report No. 53/2018 of September 27,2018. The final sale agreement of the Real Estate will be concluded nolater than March 31, 2020. The issuer is required to provide adeclaration of mortgage establishment by June 30, 2020.

In addition, each of the mortgage debtors will submitdeclarations in the form of a notarial deed of submission to enforcementin favor of the mortgage administrator.

The Bond issue offer was directed pursuant to art. 33item 1 of the Act of 15 January 2015 on bonds (the "Act").

The funds obtained by the Company from the issue ofBonds will be used to refinance the Issuer's C and F series bonds andrefinance the costs of purchasing real estate.

At the same time, the Issuer's Management Boardinforms that on March 5, 2020 the Issuer made a partial, earlyredemption of 8,388 series C bonds with a nominal value of PLN 1,000.00(one thousand zlotys) each and a total nominal value of PLN 8,378,000(eight million three hundred seventy eight thousand zlotys). Partial,early redemption was carried out in accordance with the principlesdescribed in the Terms of Issue of Bonds as an attachment to theIssuer's Management Board Resolution of December 17, 2019.

The Issuer made a partial, early redemption of Cseries bonds by paying to the Bondholder for each purchased C seriesbond together with due and unpaid interest calculated in accordance withthe Terms of Issue.

At the same time, the Issuer's Management Boardinforms that on March 4, 2020 it adopted a resolution regarding theredemption of 64,242 series F bonds with a nominal value of PLN 100.00(one hundred zlotys) each and a total nominal value of PLN 6,424,200(six million four hundred twenty four thousand two hundred zlotys ),issued by the Company on the basis of the resolution of the Issuer'sManagement Board of February 2, 2018 on issue of bonds, resolution ofthe Issuer's Management Board of March 2, 2018 regarding the amendmentof the resolution of the Issuer's Management Board of February 2, 2018,resolution of the Issuer's Management Board of June 4 2018 regarding theapproval of the Final Terms and the resolution of the Issuer'sManagement Board of June 7, 2018 regarding the Supplement to the FinalTerms of Series F Bonds, marked by the National Depository forSecurities. [hereinafter: KDPW] with the code 'PLI2DVL00071'. TheManagement Board will ask KDPW to redeem F series bonds in accordancewith applicable regulations and procedures adopted by KDPW.

Signatures of persons representing the Company: