10/2014 – Information on Auditor’s Valuation Report with regard to Terms of Issue of Series C Bearer Bonds

With reference to Current Report No. 8/2013 of 1 February 2013, which informed about the issue of series C bonds (secured by the registered pledge on all the shares of AB Kauno tiltai held by the Company, which at that time constituted 96.837% of the share capital of AB Kauno tiltai), and also about the fulfilment of information obligations under the Terms of Issue of Series C Bearer Bonds (Terms of Bond Issue – Appendix No. 4 to Information Note for Series C Bonds; obligation to prepare and present the Valuation Report – pt. 8.34 of the Terms of Bond Issue; publication of information in the form of current reports – pt. 11.1. of the Terms of Bond Issue), the Management Board of Trakcja PRKiI S.A. (“Company”) hereby informs that the independent auditor, namely Grand Thornton, prepared the Valuation Report regarding the pledged shares of AB Kauno tiltai.

According to the aforementioned Valuation Report of 25 April 2014, as of 31 December 2013 the market value of the pledge was PLN 241,543,000 and the market value of AB Kauno tiltai was PLN 249,425,000. As of 31 December 2013, the value of the pledge was not lower than its initial value, and therefore the value of collateral had not decreased.

Please find enclosed herewith the Valuation Report prepared by Grant Thornton in two language versions: in the Polish language version (Appendix No. 1 to Current Report) and in the English language version (Appendix No. 2 to Current Report).

Further information on the collateral for series C bonds was provided by the Company in Current Report No. 5/2013 of 24 January 2013.

Legal basis: Article 56 item 1, point 2 of the Act on public offering and the conditions for introducing financial instruments to organised trading system and on public companies, and §3 item 2 and § 5 item 1 point 11 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and the conditions for regarding information required by the law of a non-member state as equivalent.