CR 22/2025 Concluding of significant financial agreements

Current report no.: 22/2025
Date: 20.11.2025
Time: 07:53 am

LPP SA (the “Company“) announces that on 19 November 2025:

• Senior Facilities Agreement (the “Loan Agreement“) was concluded between the Company as borrower, LPP Logistics sp. z o.o., as guarantor (the Company and LPP Logistics sp. z o.o. hereinafter collectively referred to as the “Obligors“), and the consortium of banks including i.a. HSBC, Santander Bank Polska, Pekao, BNP Paribas, Citi Bank / Bank Handlowy, Unicredit, ING, PKO BP, EBRD (the “Consortium of Banks“) as, i.a. lenders;
• Framework Agreement relating to the Payables Financing Program (the “Framework Financing Agreement“) was concluded between the Company and the Consortium of Banks.

Pursuant to the Loan Agreement, the Consortium of Banks provided the Company with financing comprising:

• Capex Facility up to a maximum base of EUR 505,000,000.00
• Revolving Credit Facility up to a maximum amount of PLN 2,800,000,000.00.

The proceeds of the financing under the Loan Agreement will be used to refinance the existing indebtedness of the Obligors, to finance or refinance the capital expenditures of the Company’s Group (“Group“) for logistics centres in Europe and for general corporate and liquidity purposes of the Group.

The Agreement of the Bank Loans does not provide for the establishment of any security in rem over the assets of the Company or the subsidiaries, and does not include a declaration by the Company to voluntarily submit to enforcement pursuant to Article 777 of the Code of Civil Procedure.

The interest rate on the loans made available under the Loan Agreement is determined based on the relevant reference rates (EURIBOR for loans in Euro and WIBOR for loans in Polish zloty), plus fixed margins.

Pursuant to the Loan Agreement, the final repayment date for the Capex Facility is set at 5 (five) years from the date of conclusion of the Loan Agreement and for the Revolving Credit Facility at 3 (three) years from the date of conclusion of the Loan Agreement, with the proviso that the Revolving Credit Facility may be extended by a maximum of 2 (two) years.

On the basis of the Framework Financing Agreement, which the purpose is a continuation of the supplier financing mechanism currently used by the Company known as “reversal factoring”, the Company will make available to its suppliers the possibility of obtaining payment directly from the members of the Consortium of Banks, including: prior to the payments due date under the agreement with the Company, for a discount to the bank. In turn, there will be an obligation for the Company to pay to the members of the Bank Consortium the amounts paid by them to the suppliers.

Under the Framework Financing Agreement, the Company will provide its suppliers with banking platforms to obtain payment, with supplier financing (and therefore the Company’s obligation to pay trade liabilities) limited to a maximum base of USD 2,400,000,000.00 with the flexibility to increase this limit. As before, this will support the liquidity needs of suppliers with a positive impact on the Company’s working capital.

The Framework Financing Agreement does not provide for the establishment of any security in rem over the assets of the Company or Group companies.

The interest in the refinancing process by financial institutions has far exceeded the Company’s needs, which demonstrates the strong confidence in Group’s business model and has allowed, in addition to the existing partner banks, new banks from Poland and other countries to join the structure.

The conclusion of both agreements provides the Company with a long-term source of financing and allows it to reduce its indebtedness costs, while additionally the Group gains a stable and strong position to systematically implement its ambitious expansion strategy in the coming years.