GPW - Giełda Papierów Wartościowych w Warszawie S.A.

Capital/Financing Update • Mar 10, 2017

Current Report No 20/2017Date: 10 March 2017Topic:Material loan agreement signed by a subsidiaryLegal basis:Article 17 (1) of MAR - Inside informationContent:TheWarsaw Stock Exchange ("GPW") announces that on 10 March 2017, theManagement Board of Towarowa Giełda Energii ("TGE"), a 100% subsidiaryof GPW, signed a loan agreement ("Agreement") with DNB Bank Polska S.A.under which TGE will be granted a loan of PLN 60 million ("Loan").Accordingto the Agreement, TGE will repay the Loan in instalments on the terms ofthe Agreement; the final repayment of the Loan will take place no laterthan 31 March 2018. The interest rate on the Loan is equal to thefloating rate WIBOR 1M plus the Bank's margin. The Agreement providesfor the option of early repayment of the Loan without extra fees to bepaid by TGE. The Loan is not secured with TGE assets.The Loan willbe used to finance TGE's payments to the Tax Office following acorrection of value added tax ("VAT") payments for the period fromDecember 2011 to December 2016 in the amount of PLN 69.8 million plusinterest on overdue tax liabilities at PLN 10.2 million.TGE'sliabilities to the Tax Office stand at ca. PLN 80.0 million followingthe decision of the TGE Management Board to modify the previous taxpolicy applicable to exchange fees on transactions on the PropertyRights Market, the Commodity Forward Instruments Market in Electricityand Gas as well as fees for the operation of the Register ofCertificates of Origin ("Fees") which were charged net of VAT in theyears 2011-2016, and the correction of the resulting payments, asannounced by GPW in Current Report No. 13/2017 of 25 January 2017.Asa result of the decision, TGE will issue correction invoices to itscounterparties, requesting them to pay the VAT which was not previouslycharged in relation to the tax liabilities under the Fees (in the periodfrom December 2011 to December 2016 inclusive) and correct its own VATreturns and pay to the account of the Tax Office the amount of overduetax liabilities in respect of the correction invoices in the amount ofPLN 69.8 million plus interest on the overdue amount at PLN 10.2 millionas at the date of TGE's active grief (the total amount of interest willbe known at the date of submission of corrected tax returns to the taxoffice; in aggregate ca. PLN 80.0 million).TGE's counterpartiesshould, as a rule, be entitled to deduct the VAT on the correctioninvoices in the current or future financial periods.According to theManagement Board of the Polish Power Exchange, TGE intends to financethe remaining amount of liabilities to the Tax Office with own funds andan additional loan to be taken within the GPW Group.Legal basis:Article 17 (1) of Regulation (EU) No 596/2014 of the European Parliamentand of the Council of 16 April 2014 on market abuse (market abuseregulation) and repealing Directive 2003/6/EC of the European Parliamentand of the Council and Commission Directives 2003/124/EC, 2003/125/ECand 2004/82/EC (EU Legal Journal L 173) ("MAR").