Globe Trade Centre S.A.

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The EBRD invested in Globe Trade Centre S.A., an established property developer in Poland, in order to support the growth plans of the company, to enable it to raise additional funds in the future through a listing on the Warsaw Stock Exchange and to contribute to improvement of liquidity on the Warsaw Stock Exchange. The operation will support the listing of an established property development company in Poland and improve the liquidity of its share listing on the Warsaw Stock Exchange (WSE). In so doing, the EBRD’s participation in the IPO is expected to strengthen investor confidence in Poland’s capital markets in general and to improve liquidity on the WSE. The transaction is expected to create liquidity and depth in Polish equity markets and to attract new sources of finance for property investments. The project is expected to create a market benchmark upon listing of the company. Globe Trade Centre S.A., (GTC) was incorporated in Poland in 1994 with the objective of supplying the country’s growing demand for Western quality commercial and residential property at affordable prices. It has since become one of Poland’s leading property developers. GTC has a completed property portfolio of 138,000 rentable sqm, another 18,000 sqm rentable under construction and about 140,000 sqm in the planning stage. US$ 15 million (€17.15 million) equity investment in GTC (about 5.7 per cent of the company’s stock). In addition, the Bank has signed a Sale Option Agreement with GTC. According to the Agreement, the EBRD has the right to sell to the company the shares purchased at the offering price increased by the cost of capital if an agreed percentage of the shares of the company are not listed on the Warsaw Stock Exchange within three years (or five years at the EBRD's discretion) from the subscription date at a price higher than the zloty equivalent of US$ 17.95 per share. The project was screened B/0, requiring an environmental analysis. The analysis confirmed the following points: An independent report carried out for the IPO confirms that all appropriate measures have been taken to ensure site safety at Mokotow Business Park and Galeria Mokotow. Appropriate remedial works have been carried out in accordance with Polish environmental standards. An environmental impact assessment (EIA) has been undertaken for the Galeria Mokotow project, and all necessary remedial works were carried out for the site of Galeria Office. The independent report and other documents also state that remedial works have been completed at the site of Wielicka (formally occupied by a milk factory) and confirm that there is no significant contamination. Construction of on-going and future projects will be undertaken in accordance with Polish and EU worker health and safety legal requirements and standards. Most of the necessary environmental permits have been received and the remainder have been applied for. The projects have complied with and will comply with all local fire, safety and emergency procedures. Sprinklers will be installed throughout according to authorities' requirements. Existing trees were replanted in new locations at the site of Galeria Mokotow, and energy conservation measures will form a major part of the GTC's projects along with the provision of clean air filtration systems. The remediation and use of "brownfield" sites will result in environmental improvements in the area. None.