CORRECTION: AB Klaipėdos Nafta concluded with the Ministry of Finance the Agreement on the Margin Payment and Mortgage of Property as well as the Maximum Conditional and Ordinary Mortgage Agreement

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| Source: Klaipedos Nafta AB
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On 5 December 2013 AB Klaipėdos Nafta (hereinafter – the Company) and the Ministry of Finance of the Republic of Lithuania (hereinafter – the Ministry of Finance) concluded an Agreement on the Margin Payment and Mortgage of Property as well as a Maximum Conditional and Ordinary Mortgage Agreement (hereinafter together – the Agreements).

Under the Agreements the Company undertook to make to the Ministry of Finance a margin payment in the amount of EUR 81,093.61 and to mortgage for the benefit of the Ministry of Finance (the State) inter alia all the future property that will be created during the Liquefied Natural Gas Terminal (hereinafter – LNGT) project and which will be owned by the Company upon implementation and completion of the LNGT project (in the amount of maximum mortgage of EUR 81,093,605).

As it was announced by the Company in its notification on material event of 12 November 2013, these Agreements serve as conditions precedent for the Ministry of Finance to sign a state guarantee agreement (in the amount of EUR 81,093,605) with the European Investment Bank (hereinafter – EIB), which will serve as guarantee for the obligations of the Company to EIB under the Credit Facility Agreement on the co-financing of the LNGT project concluded with EIB on 9 July 2013.

The Agreements have been signed upon receipt of a confirmation from the European Commission that the state guarantee granted to EIB is considered state aid compatible with the internal market under the Treaty on the Functioning of the European Union (the Company made a notification whereof on 20 November 2013). The transactions under the Agreements have also been approved by the General Meeting of Shareholder of the Company held on 4 December 2013 (the notification whereof was made by the Company on 4 December 2013).

 

         Mantas Bartuška, Director of the Finance and Administration Department, +370 46 391 763