Profil:
JSW SAJSW coal supervisory board redeems approx. PLN 400 mln FIZ investment certificates
Listed coking coal group JSW's supervisory board has agreed to redeem the company's rainy-day fund FIZ investment certificates with a total estimated value of PLN 400 million (EUR 94.2 mln), the company said in a market filing.
Funds from FIZ Investment Certificates redemption will fund both operations and investments.
"At the same time, the Company hereby reports that, in accordance with the provisions of the syndicated Sustainability-linked loan agreement, the company will not recommend the payment of any dividends and profit distributions unless the Company has not made any distributions from the FIZ in the 12 months preceding such recommendation," the filing said.
"The company's failure to perform this covenant constitutes an event of default under the agreement. Accordingly, in the event of redemption of the investment certificates referred to in this current report, the company will be obliged, for a period of 12 months after redemption, not to recommend the payment of dividends and profit distributions," it added.
The closed-end investment fund (FIZ) was established by the company in order to stabilise its financial liquidity and limit the impact of coal and coke price volatility on the continuity of the group's operating and investment activities.
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