18jul2023
Current Report 22/2023
Signing a significant agreement with mBank SA by a subsidiary
Only the Polish version of this document is legally binding.
This translation is provided for information only.
Every effort has been made to ensure the accuracy of this publication.
The Management Board of INPRO SA (the “Issuer”) with its registered office in Gdańsk informs that on 18 July 2023 a subsidiary, Domesta Sp. z o.o. (KRS 0000061417) (further “Domesta”) signed current credit agreement No. 10/079/23/Z/OB with mBank SA with its registered office in Warsaw (“mBank,” the “Bank”) on the following terms and conditions:
1. Object of the agreement: financing the costs of construction of the “Polana Kampinoska” project.
2. Significant conditions of the agreement: The agreement between the Company and the Bank contains standard provisions and is a typical agreement concluded in transactions of that type. The agreement contains, without limitation, the following provisions:
a) Credit amount: up to PLN 28,520,000.00.
b) The financial conditions do not deviate from those commonly used for that type of agreements: the credit interest rate is based on 1 M WIBOR + the Bank's margin; there is a credit facility fee and handling fee.
c) Drawings: upon compliance with the drawing conditions, in tranches, on the prefinancing basis.
d) Credit transaction period: until 30/04/2026.
e) Repayment conditions: the principal repaid in 12 equal monthly instalments commencing from 30/05/2025; interest repaid on a monthly basis. Each release from the open housing trust account of the funds paid in relation to the sale of premises on the project financed by the credit shall be allocated in the following way: 93% of the payment towards the premature repayment of the credit (the repayment of the first principal instalments, also during the credit use period), 7% to the Company's auxiliary account kept by the Bank.
f) In addition to establishing legal security for credit repayment and the payment of the fee, the credit launch conditions will include: documenting the borrower's contribution in the amount of PLN 9,507,900.00 comprising the value of land and part of the costs/expenditure of the Property Development Project described above, documenting the advance sales at the level of 25 % of the floor area of the units in total (property development agreements + the payment of the 1st instalment of a minimum 10% of the price of the unit). As regards establishing a mortgage in favour of the Bank, the confirmation of filing at a court of a paid-for application for the entry of the mortgage and the payment of relevant civil law transaction tax are the credit launch conditions, too.
3. Legal security for credit repayment:
a) Contractual real estate mortgage up to PLN 42,780,000 in favour of mBank SA on real property located in Gdańsk, for which the Gdansk-North District Court Gdańsk, 3rd Land and Mortgage Register Division, maintains land and mortgage register No. GD1G/00019786/2 – to secure the repayment of the main amount and secondary liabilities: bank commissions, interest, as well as debt collection and enforcement costs.
b) Assignment of rights following from the insurance agreement for the real estate being credited in favour of the Bank.
c) A blank promissory note with a promissory note declaration.
4. Additional conditions: from the date of the conclusion of the credit agreement, the funds from the sale of the premises at the project being credited are not covered by the Property Development Act; such funds are to be sent to the separate revenue account; completion of construction works and procurement of the occupancy permit for the building by 31/12/2024; maintaining the financial ratios specified by the Bank during the credit period.
5. If credit repayment is late, the Bank will collect interest on the outstanding amount for the period from the day following the deadline until the payment with reference to the interest rate for overdue credit.
6. The credit agreement does not contain other special conditions deviating from those commonly used in agreements of that kind or provisions pertaining to penalties, whose value would exceed 10 % of the value of that agreement or the equivalent of 200,000 euros, with reference to the average rate published for a given currency by the National Bank of Poland and binding on the date of conclusion of that agreement.
The Issuer's significance criterion for agreements is the considerable total value, on the Issuer's scale, of the object of the agreements concluded by the entities belonging to the INPRO Corporate Group with mBank SA during the last 12 months, that value being PLN 57,450,000.
Detailed legal grounds: Article 17(1) of Regulation of the European Parliament and of the Council (EU) No 596/2014 of 16 April 2014 on market abuse (the market abuse regulation) 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 (also referred to as the MAR).
