Conclusion of a letter of intent to purchase a portfolio of lease receivables

Getin Noble Bank S.A. (“Issuer”) hereby informs that on 13 August 2020, the Issuer concluded with Idea Bank S.A. (“Idea Bank”) a letter of intent to take action aiming at entering into a purchase transaction from Idea Bank of lease and loan receivables acquired previously by the abovementioned company with a nominal value of not more than PLN 2,000,000,000.00 (say two billion zlotys) (“Debt Package”).

According to the said letter, the intention of its parties is to seek to agree upon the terms and conditions of the Receivables purchase transaction (“Transaction”) and to complete the transaction until 31 December 2020. It is therefore the intention of the Parties to agree on the terms of the transaction and to conclude a conditional Agreement on the purchase of the Debt Package (SPA) until 30 September 2020.

According to the findings made by the parties, the receivables that are the subject of the Transaction will, above all, meet the following conditions: at the time of transfer, the receivables will be undisputed, not past due or classified in Basket 2 or 3 according to IFRS9, expressed in PLN and consumers will not be entitled to them.

In accordance with the letter of intent, the Parties agreed that the purchase price of the Debt Package will be determined by the Parties by means of negotiations on the basis of valuations made for the purpose of the Transaction, and such valuations will be performed by independent companies specialising in receivables valuation.

The Issuer indicates that the execution of the Transaction will be subject to obtaining consents of the corporate authorities of both Parties to the Transaction, the lack of an objection of the Bank Guarantee Fund acting as Idea Bank’s curator for resolutions of Idea Bank’s authorities and the Issuer obtaining a positive opinion from the Polish Financial Supervision Authority for the execution of the Transaction.

The execution of the Transaction may be performed as a one-off purchase of the Debt Package or be carried out as a cyclic purchase of individual parts of the debt.

Legal basis: Article 17(1) of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse.