Pfleiderer Grajewo : Issue of Short-Term Bonds

01_2016_eng Subject: Issue of Short-Term Bonds

Current Report No. 01/2016

The Management Board of Pfleiderer Grajewo S.A. reports that in order to optimise the management of financial liquidity within the Pfleiderer Grajewo Group, to decrease Company's external debts and to finance it's current business activities on January 8th , 2016 Pfleiderer Grajewo S.A. issued short-term bonds. The bonds were issued in accordance with the Bond Issue Programme signed with PEKAO S.A. Bank on 22.07.2003. The bonds were issued in compliance with the Law on Bonds dated

29 June 1995 in Polish zlotys, as bearer, dematerialized, unsecured, and zero- coupon securities. The redemption of the bonds will be at their nominal value.

The bonds were purchased by Pfleiderer Prospan S.A. subsidiary of Pfleiderer Grajewo SA . Bond's purchase was financed from own resources of Pfleiderer Prospan S.A..

Pursuant to the last periodical report worth of total liabilities was PLN 355,146,000. Estimated worth of total liabilities on redemption date is PLN 360,000,000.

Total value of issued during last 12 months short-term bonds exceeds 10% of value of the Company's equity which as at September 30th 2015 amounted to 749,142,000 PLN.

Conditions of the issues:

1. Issue of PLN 15,000,000

   • number and value of bonds - 1.500 bonds with a nominal value of PLN 10,000 per bond

   • redemption date: January 12th 2016

   • unit nominal price of the bond - PLN 9,998.23

     
     

2. Issue of PLN 5,000,000

• number and value of bonds - 500 bonds with a nominal value of PLN 10,000 per bond

• redemption date: January 15th 2016

• unit nominal price of the bond - PLN 9,996.91

The criterion for recognising the contracts as significant is the value of the Company's equity.

Pursuant to the Regulation of the Polish Council of Ministers on current and periodic information to be published by issuers of securities and conditions for recognition as equivalent of information whose disclosure is required under the laws of a non- member state, dated February 19th 2009 (Dz. U. No. 33, item 259).

January 8th, 2016