5/2013 - Establishment of a pledge on shares of the company AB Kauno tiltai

The Management Board of Trakcja S.A. ("Company") informs that on 23 January 2013 the Company entered into an agreement for pledge, based on which the pledge was registered on 23 January 2013 at the Lithuanian Mortgage Registry with respect to all shares owned by the Company in AB Kauno tiltai, located at Ateities pl. 46, Kaunas, Lithuania, i.e. 148,981shares of nominal value of 130 Lithuanian litas each, in total 96.837 per cent of share capital and general number of votes at the general meeting of AB Kauno tiltai ("Shares"). The shares constitute long-term investment of the Company.

The pledge on the Shares has been established by the Company in order to secure the Company's liabilities towards future bondholders ("Investors") up to 36,500 series C bonds of nominal value of PLN 1,000 each and total maximum nominal value not exceeding PLN 36,500,000 ("Series C Bonds"), which the Company is planning to issue in the nearest future. A report in that respect was published by the Company on 15 January 2013 (current report no 2/2013). The maximum pledge value was PLN 44,294,000.

The book value of the Shares as for 30 September 2012 recognised in the  Company's accounting ledgers was PLN 141,793,000.

The UAB FMI "Orion Securities" ("Security Agent") was authorized by the Investors to exercise all rights resulting from the pledge on the Shares and vested in the Investors.

With the above in mind, the criterion for considering the Shares as assets of significant value shall be the fact that the value of the pledge on the Shares is higher than the equivalent of EUR 1,000,000 according to the average exchange rate of the National Bank of Poland as for 23 January 2013.

The agreement for pledge on the Shares has been executed in compliance with Lithuanian law.

Legal basis: Article 56 sec. 1 point 2 of the Act on Public Offering and Conditions Governing the Introduction of Financial Instruments to Organised Trading and Public Companies §5 sec. 1 point 1 of the Ordinance of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state.