Current Report No.: 68/2018
Current Report No.: 68/2018
Date of Preparation: 29 December 2018
Short Name of Issuer: ENEA S.A.
Subject: Conclusion of a memorandum of understanding concerning the implementation of the Ostrołęka C project
Legal basis: Article 17(1) MAR - confidential information
Content of report:
The Management Board of ENEA S.A. ("Issuer"), hereby informs that on 28 December 2018 the Issuer concluded a memorandum of understanding ("Memorandum of Understanding") with ENERGA S.A. and Elektrownia Ostrołęka Sp. z o.o. ("Company"), concerning the implementation of the Ostrołęka C project ("Project"). Pursuant to the Memorandum of Understanding, the Investment Agreement together with the Annex, of which the Issuer informed in Current Report No. 42/2016 of 8 December 2016 and Current Report No. 13/2018 of 26 March 2018 respectively, shall be terminated.
The Memorandum of Understanding stipulates new terms of cooperation, including the Project's financing structure, whereby the Issuer declares its financial involvement in the execution of the Construction Stage in the amount of PLN 1 billion and ENERGA S.A. in the amount of not less than PLN 1 billion, in addition to the funds already committed. Moreover, the Memorandum of Understanding provides for the involvement of further investors to contribute the remainder necessary to cover the financial outlays for the Project. By 28 January 2019, the parties to the Memorandum of Understanding intend, inter alia, to:
-agree on the form, time schedule and terms of financial involvement of a financial investor and/or other investors;
-conclude a new investment agreement;
-agree on the terms for granting loans necessary for the execution of the Construction Stage to the Company by lenders in a manner not violating the obligations assumed by the Issuer and ENERGA S.A. under external financing (the so-called financial covenants).
The conclusion of the Memorandum of Understanding constituted a condition for the Issuer's granting consent to a notice to proceed (NTP) being issued to the general contractor by the Company.
