PKP Energetyka S.A Privatization

cancelled

The proposed project consists of an equity investment alongside funds ("CVC Funds") advised and managed by CVC Capital Partners ("CVC"), a global private equity and investment advisory firm, in PKP Energetyka S.A (the "Company"), which is subject to a privatisation process through a trade sale of 100 per cent of the Company's shares. Through this project, EBRD aims to support the privatisation of PKP Energetyka, the sole distributor of electricity to the Polish railway system. The main transition impact of the project will derive from: (i) More widespread private ownership. The project will support the privatisation of a large state-owned company to a reputable foreign financial investor. The privatisation should significantly improve the Company's efficiency and productivity. (ii) Setting of standards for corporate governance and business conduct The project will contribute to improvements in corporate governance standards at PKP Energetyka through transfer of international best practices applied by CVC. Client Information PKP ENERGETYKA PKP Energetyka, established in Poland in 2001 as the energy unit of Polish National Railways (PKP), is a cross-country electricity distributor to the Polish railway network and other customers. It also provides nationwide maintenance and modernization engineering services to the railway network, operates fuel stations for diesel locomotives and is active in electricity and gas trading markets. PKP Energetyka's offer is aimed at rail operators as well as other institutional customers. EBRD Finance Summary EUR 50,000,000.00 Up to PLN 210 million (EUR 50 million equivalent). EBRD will join the transaction by acquiring the shares in the Company from CVC Funds Total Project Cost EUR 478,000,000.00 Approximately PLN 2.0 billion Environmental and Social Summary Categorised B (2014 ESP). Through the equity investment the Bank will be exposed to environmental and social risks associated with the Company's assets and operations. The Company operates multi-site operations throughout Poland, and therefore in line with the Bank's Environmental and Social Policy, a corporate environmental and social audit is required focussing on the Company's management systems and current performance against EBRD PRs. An ESAP and a SEP will be developed based on the findings of the ESDD. Technical Cooperation None. Company Contact Information Carsten Huwendiek chuwendiek@cvc.com +44 (0) 20 7420 4240 +44 (0) 20 7420 8780 www.cvc.com