Reports indicate Elektrim has agreed loan with Pekao for bond purchase

Press reports suggest that Elektrim has agreed a short-term loan with Pekao S.A. that will enable it to buy back euro 488 million worth of bonds that are due to expire on December 15. A Wall Street Journal Europe report quoted by Prawo i Gospodarka says the loan will also secure the sale of a 75% stake in Elektrim Kable, valued at euro 123.4 million, to the Krakow Cable Factory (KFK). Prawo i Gospodarka was unable to obtain confirmation of the report from Elektrim spokesperson Ewa Bojar, who said the company does not comment on press speculation. According to Radoslaw Solan, analyst with BDM PKO BP, Pekao is taking a very small risk in granting the loan to Elektrim. (Prawo i Gospodarka, p. 11) M.T.K.