37/2015 - Establishment of a pledge on subsidiary's assets

The Management Board of Trakcja PRKiI S.A. (the "Company", "Issuer”) announces that a pledge on assets of the Issuer's subsidiary AB Kauno tiltai of Kaunas (Lithuania) was registered today with the Lithuanian pledge register.

The pledge secures AB DNB bankas' and Nordea BANK AB's (acting through Nordea bank AB division in Lithuania, hereinafter referred to as "the Banks") claims for the amount of EUR 78,339,250.54 EUR, that is PLN 331,351,528 (three hundred and thirty-one million, three hundred and fifty-one thousand, five hundred and twenty-eight PLN) resulting from the loan agreement, we reported about in Current Report No. 34/2015.

The pledge was established on assets with a total value of EUR 28,420,595.75 that is PLN 120 210 593,84 (one hundred and twenty million, two hundred and ten thousand, five hundred and ninety-three PLN 84/100) which constitute AB Kauno tiltai's claims under its construction contracts, and on its movable assets (including equipment and vehicles).

The value of assets pledged exceeds 10% of Issuer's equity. The value of the pledge established is higher than the equivalent of EUR 1,000,000, which is the legal basis of the report.

There are no relations between AB Kauno tiltai and the Banks, for whom the pledge was established, other than those arising from the loan agreement between the parties.

Legal basis:

Section 5 paragraph 1 subparagraph. 1 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and conditions for recognizing information required by laws of non-member states as equivalent.