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Current Report No. 30/2019

Contract Loan

Signing of a finance contract with the European Investment Bank

Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“JSW”, “Company”) reports that on 9 April 2019 a finance contract (“Contract”) was entered into by and between JSW S.A., a JSW subsidiary, i.e. JSW KOKS S.A. and the European Investment Bank (“EIB”) with its registered office in Luxembourg.

This financing was granted in the form of a term facility in the amount of EUR 58,500,000.

This facility will be disbursed in a maximum of five tranches over a period of 2 years from the date of signing the contract. The amount of each Tranche will be at least EUR 10,000,000. In reference to the disbursement of each one of the facility’s tranches, the borrowers have the option of receiving it in EUR or, subject to availability, in USD or PLN. The facility amortization term is 8 years from its origination, while the contract permits its early repayment.

The financing will be secured by the security instruments described in § 1 of resolution no. 4 of the Company’s Extraordinary Shareholder Meeting, which the Company reported in Current Report No. 27/2019.

The beneficiaries of the facility granted by EIB with the support of the European Fund for Strategic Investments intend to use the funds obtained to conduct a project involving the modernization of a coking plant and investments to generate energy using coke oven gas and methane obtained from a hard coal mine. These installations will contribute to curtailing emissions, including greenhouse gas emissions and enhancing resource and energy efficiency, energy self-sufficiency and procuring compliance with BAT (Best Available Technology) and future environmental requirements stemming from legal regulations. 

  1. In the coal segment (JSW) this pertains to the construction of electricity and heat cogeneration engines based on methane obtained from the degasification of underground coal seams containing all the devices, utilities and auxiliary equipment related to the supply of gas and electricity and offtake of heat.
  2. In the coke segment (JSW KOKS) this pertains to the modernization and expansion of its own infrastructure, in particular, support for measures to enhance efficiency, curtail emissions and curtail further the environmental impact exerted by coke installations, which is crucial for the environment. This pertains to the investment projects:

-    involving the reconstruction of coke production capacities utilizing the latest engineering solutions (Modernization of coke oven battery no. 4 at the Przyjaźń Coking Plant),

-    involving the utilization of coke oven gas through its effective combustion and generation of electrical energy and heat (Construction of a power unit at the Radlin Coking Plant),

-    in infrastructure making it possible to safeguard the ongoing operation of the coking plant in areas related to the supply and distribution of raw materials (Stage III of the modernization of the Radlin Coking Plant),

-    associated with the treatment of coke oven gas so that its subsequent utilization will precipiate the least possible environmental impact and make it possible to curtail emissions to the maximum (CDA and SRCM installation – construction of the 2nd line with an acid absorption column at the Radlin Coking Plant and the Gas Desulfurization Installation in the Jadwiga Coking Plant).

Legal basis: Article 17 Section 1 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on Market Abuse and Repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.


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