Conclusion of an investment loan agreement with mBank S.A.

The Management Board of Stalprofil S.A. informs that on 19.03.2019 the Company (the Borrower) concluded an investment loan agreement with mBank S.A. with its registered office in Warsaw, Corporate Branch in Katowice (Bank) in the amount of PLN 17,462,048 for partial financing of the investment called "Construction of a high storage warehouse at the Commercial Warehouse A in Katowice".
The construction of an automated high bay warehouse realized by STALPROFIL S.A. at the warehouse in Katowice is another pro-development activity in the steel segment served by the Company. This investment is part of the latest trends in the steel distribution industry and will allow for a significant automation of customer service in the field of trade in metallurgical products, as well as expanding the assortment offer.
Financial terms on which the Company uses the investment loan granted do not differ from those commonly used for this type of contracts. The interest rate of the loan is based on WIBOR 1M + bank margin. The loan will be repaid in equal quarterly installments starting from March 2021 until June 2028.
The basic collateral for the investment loan granted by the Bank is as follows:
1. A contractual mortgage on a perpetual usufruct of the Borrower of a plot of land located in Dąbrowa Górnicza, the town of Dąbrowa Górnicza, Roździeńskiego 11A, constituting plot number 89 from Dąbrowa Górnicza, and the building property owned by the Borrower established on that land, constituting a separate property, up to 125% of the investment loan granted;
2. A declaration on submission to enforcement in accordance with art. 777 cc.