Current report no. 38/2016   (28.10.2016)

Title:

Conclusion of the agreement of receivables insurance with KUKE S.A. and the factoring agreement with KUKE FINANCE S.A.

Legal basis:

Art. 17 sec. 1 Market Abuse Regulation

Message:

The Management Board of the Issuer hereby informs that on the 28th October 2016 the company URSUS S.A. concluded with by the Export Credit Insurance (KUKE S.A.) with the seat in Warsaw the agreement of insurance of the issuer’s receivables concerning contracts for delivery of tractors, agricultural machinery and devices z concluded with foreign customers. The total limit of foreign receivables covered by the agreement is 30.000.000 PLN.                                                  

Besides, on the same day the company URSUS S.A. concluded with KUKE Finance S.A. the factoring agreement.

The subject of this agreement is purchase by the factor of financial receivables concerning contracts for delivery of products of URSUS S.A., concluded by the Issuer with foreign customers. The above-mentioned agreement is concluded in compliance with the terms of mixed factoring. The agreement is secured with assignment of the receivables insurance KUKE S.A.

For provision of services under the above-mentioned agreements KUKE S.A. and KUKE Finance S.A. are entitled to remuneration in the amount which does not differ from such remuneration on the insurance and factoring market.

The above-mentioned agreements are concluded for an indefinite period. Their other provisions do not differ from the standard terms commonly used in this kind of agreements.

The aim of conclusion of the both agreements is minimizing risk of possible insolvency of foreign contractors of the Issuer and supporting the sales of the Company’s products to foreign dealers.

According to the Individual Reporting Standard of URSUS S.A., the agreements concluded today are considered to be material due to the fact that their total value a exceeds 10% of the equity of the Issuer’s Capital Group, presented in the last consolidated financial statement of the Capital Group URSUS published by the Issuer.