signed an annex to pay a EUR 600 mln tranche of a 2005 EUR 900 mln loan ahead of schedule, the company stated on Monday. The realization of annex will not change the amount of funds granted to the company in the loan, nor the time of their accessibility, but will only change conditions of making [the funds] available to the company. In July 25, 2005, PGNiG
signed a EUR 900 mln loan agreement with a consortium of banks led by Bank Handlowy
w Warszawie to restructure debt and finance investments. The loan consists of two tranches, a EUR 600 mln tranche granted for five years and earmarked to repay the previous loan and a second EUR 300 mln tranche with a three-year repayment schedule earmarked to refinance debts and other corporate needs.
Our view: We think that PGNiG
intends to change the conditions of the crediting to more attractive ones. Current financial position of the company is stronger than that in 2005, which might result in much better loan conditions. We expect the neutral market reaction to the news.