The establishment of the surety for the loan by the Issuer

Date of publication: 21.04.2015

The Management Board of PROCHEM S.A. (The “Issuer”) announces that on 20 April 2015 issued a surety to the loan agreement, which was signed on 20th April 2015 between the entity jointly controlled of the Issuer – IRYDiON Sp. z o.o. seated in Warsaw (“jointly controlled Entity”) and the consortium of banks mBank and mBank Hipoteczny SA (“the Banks”).
The loan was granted in the amount of PLN 43,469,097.00 for the implementation of the development project Astrum Business Park in Warsaw.

The surety in favor of the banks is being granted up to 50% of the loan, i.e. up to the amount of PLN 21,734,548.50
Payment for the surety granted was not fixed. Surety was granted until 20 September 2016. Payment for the surety granted was not fixed. Surety was granted until 20 September 2016.

At the same time, the Issuer announces that on 20 April 2015 entered into an agreement of registered pledge on shares of the Issuer in the entity jointly-controlled in favor of the Banks. The agreement includes the establishment of a pledge for 4,500 shares with a nominal value of PLN 1,000 each, with a total nominal value of PLN 4,500,000.00. These shares represent 50% of the share capital of the entity jointly controlled. The shares entitle to 4,500 votes at the General Meeting of Shareholders. Shares of the Issuer in the entity jointly-controlled are long term capital investment of the Issuer.
Registered pledge on shares shall constitute a collateral for the above loan.
About entering of the pledge in the register of pledges and about the establishment of a pledge the Issuer will notify in a separate report.