Market announcement

Title

Conclusion of a loan agreement with ELKOP SE

Message

The Management Board of FON SE with headquarters in Tallinn hereby informs that on 30/12/2019 as the Lender concluded a Cash Loan Agreement with ELKOP SE with headquarters in Płock (KRS: 0000782225) as the Borrower.

Pursuant to the Agreement of 30/12/2019, the Issuer granted the Borrower a cash loan in the amount of PLN 27.200.000,00 (in words: twenty seven million two hundred thousand zlotys 00/100) for the period to 31/12/2024.

The loan bears an interest rate of variable WIBOR for one-month deposits in the period to 31/12/2020. Since 01/01/2021, the interest rate on the loan will be equal to the variable WIBOR interest rate for 1-month deposits increased by 1%. The parties agreed that the Borrower will repay interest on a monthly basis which will be payable in arrears for each calendar month by the 20th day of the following month. The capital will be paid once until 31/12/2024.

The parties to the Loan Agreement agreed that the Borrower has the right to early repayment of all or part of the capital of the loan granted.

Pursuant to the terms of the concluded Loan Agreement, the loan was disbursed on the day the Loan Agreement was concluded.

FON SE secured the repayment of the loan amount, including interest and any other claims against the Borrower that may arise from the concluded Agreement by receiving a blank promissory note together with the Borrower's promissory note declaration.

The Issuer also informs that there are personal ties between FON SE based in Tallinn and the company ELKOP SE in Płock, Poland. The Chairman of the Issuer's Management Board is a Member of the Issuer's Supervisory Board. The Chairman of the Management Board performs functions on the Issuer's Supervisory Board. In addition, three of the Borrower's Supervisory Board Members are Members of the Issuer's Supervisory Board. In addition, the Borrower's significant Shareholder (40.1%) is also the Issuer's significant Shareholder (33.9%).