Ferrum has entered into a revolving working capital loan agreement with Bank Pekao to finance the contract for the Gaz-System Gas Transmission Operator, the company said. The loan value is PLN 95 million.
“Pursuant to the provisions of the agreement, the bank grants the company a revolving working capital loan in the amount of approximately EUR 20.9 million intended for the financing of the issuer’s current operations related to the financing of the contract performed for the benefit of the Gaz-System Gas Transmission Operator”.
The deadline for the final repayment of the loan is August 31, 2022. The agreement provides for the possibility of extending the term of the Agreement for another 12-month availability period after meeting certain standard formal and legal conditions. The interest rate on the loan is variable and is the sum of the EURIBOR 1M base rate and the bank’s margin.
“The signed contract will allow to significantly use the business potential of Ferrum S.A. in the context of the implementation of the OGP Gaz-System contract, of strategic importance for Poland’s energy security. The credit line will strengthen not only our working capital, but also financial liquidity, which will enable Ferrum to use its resources optimally, ”commented the president of Ferrum, Krzysztof Kasprzycki.