Cash-pooling conventions with subsidiaries

RNS Announcement

RNS Number : 3841C

Societatea Energetica Electrica SA

07 February 2020

To: Bucharest Stock Exchange (BSE)

London Stock Exchange (LSE)

Romanian Financial Supervisory Authority (FSA)

Current report in compliance with the Law 24/2017 on issuers of financial instruments and market operations, FSA Regulation no. 5/2018, and the Bucharest Stock Exchange Code

Report date: 7 February 2020

Company name: Societatea Energetica Electrica S.A. (Electrica)

Headquarters: 9 Grigore Alexandrescu Street, 1^st District, Bucharest, Romania

Phone/fax no.: 004-021-2085999/ 004-021-2085998

Fiscal Code: RO 13267221

Trade Register registration number: J40/7425/2000

Subscribed and paid in share capital: RON 3,464,435,970

Regulated market where the issued securities are traded: Bucharest Stock Exchange (BSE) and London Stock Exchange (LSE)

Significant events to be reported: Legal acts of the kind listed in Art. 82 of Law No. 24/2017 concluded by Societatea Energetica Electrica SA (Electrica) in Semester I 2020 with its subsidiaries - cash-pooling conventions

Electrica informs its shareholders and investors about the conclusion, in February 2020, of legal acts with a value greater than EUR 50,000 with Societatea de Distributie a Energiei Electrice "Transilvania Nord" SA (SDTN), Societatea de Distributie a Energiei Electrice "Transilvania Sud" SA (SDTS), Societatea de Distributie a Energiei Electrice "Muntenia Nord" SA (SDMN), Electrica Furnizare SA (EFSA), Societatea Filiala de Intretinere si Servicii Energetice "Electrica Serv" SA (SERV) si Societatea Servicii Energetice Muntenia SA (SEM), affiliates, where Electrica is the main shareholder.

Details regarding the Conventions concluded by Electrica, as Group Leader (Cash Pool Leader), with SDMN, SDTN, SDTS, EFSA, SERV and SEM as Participating Companies, containing information regarding the date of execution, type of legal acts, description of their scope, total value of the legal acts, expiry date, mutual debts and receivables, guarantees, penalties, deadlines and payment due dates and payment methods are presented in Annexes 1-6. These conventions are part of the documentation related to the implementation of banking structures for liquidity concentration ("cash-pooling"), necessary for improving the efficiency of the treasury operations within the Group.

The independent limited assurance report performed by a financial auditor regarding the transactions reported by Electrica according to Art. 82 of Law no. 24/2017 will be made public in maximum 30 days from the end of the reporting period acccording to the provisions of Art. 144 letter B para (4) of FSA Regulation no. 5/2018.

Chief Executive Officer

Georgeta Corina Popescu

Annex 1: Details regarding the legal act of the kind listed in Art. 82 of Law No. 24/2017, concluded by Electrica in Semester I 2020 Group Leader/ Cash Pool Leader: Societatea Energetica Electrica S.A. Participating Company: Societatea de Distributie a Energiei Electrice "Transilvania Nord" SA
Company (beneficiary)	Agreement Type and No., execution date	Scope of the agreement	Amount (RON th.)	Date of entry into force	Expiry date	Receivables/Mutual debts	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
Societatea de Distributie a Energiei Electrice "Transilvania Nord" SA (SDTN)	Convention regarding the Internal Treasury no. 24 / 05.02.2020	Credit facility	180,000	5 Feb 2020	20 Dec 2020	RON 361,507.1 th. receivable of Electrica from SDTN RON 33.0 th. debt of Electrica to SDTN	0	In the event that either Party does not pay the other Party any amount due, the amount due shall bear penalty interest equal to the current interest plus a margin of 0.5% p.a. This penalty interest will be applied to any amount due on the due date (including the respective date) until the date on which the full payment is made (exclusively).	The interest rate charged is ROBOR at 1 month + 0.07% p.a. The interest will be paid monthly, within a maximum of 8 calendar days from the end of each month.
Societatea Energetica Electrica SA (Electrica)			50,000

Annex 2: Details regarding the legal act of the kind listed in Art. 82 of Law No. 24/2017, concluded by Electrica in Semester I 2020 Group Leader/ Cash Pool Leader: Societatea Energetica Electrica S.A. Participating Company: Societatea de Distributie a Energiei Electrice "Transilvania Sud" SA
Company (beneficiary)	Agreement Type and No., execution date	Scope of the agreement	Amount (RON th.)	Date of entry into force	Expiry date	Receivables/Mutual debts	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
Societatea de Distributie a Energiei Electrice "Transilvania Sud" SA (SDTS)	Convention regarding the Internal Treasury no. 23 / 05.02.2020	Credit facility	180,000	5 Feb 2020	20 Dec 2020	RON 295,471.9 th. receivable of Electrica from SDTS RON 488.6 th. debt of Electrica to SDTS	0	In the event that either Party does not pay the other Party any amount due, the amount due shall bear penalty interest equal to the current interest plus a margin of 0.5% p.a. This penalty interest will be applied to any amount due on the due date (including the respective date) until the date on which the full payment is made (exclusively).	The interest rate charged is ROBOR at 1 month + 0.07% p.a. The interest will be paid monthly, within a maximum of 8 calendar days from the end of each month.
Societatea Energetica Electrica SA (Electrica)			50,000

Annex 3: Details regarding the legal act of the kind listed in Art. 82 of Law No. 24/2017, concluded by Electrica in Semester I 2020 Group Leader/ Cash Pool Leader: Societatea Energetica Electrica S.A. Participating Company: Societatea de Distributie a Energiei Electrice "Muntenia Nord" SA
Company (beneficiary)	Agreement Type and No., execution date	Scope of the agreement	Amount (RON th.)	Date of entry into force	Expiry date	Receivables/Mutual debts	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
Societatea de Distributie a Energiei Electrice "Muntenia Nord" SA (SDMN)	Convention regarding the Internal Treasury no. 22 / 05.02.2020	Credit facility	180,000	5 Feb 2020	20 Dec 2020	RON 380,638.7 th. receivable of Electrica from SDMN	0	In the event that either Party does not pay the other Party any amount due, the amount due shall bear penalty interest equal to the current interest plus a margin of 0.5% p.a. This penalty interest will be applied to any amount due on the due date (including the respective date) until the date on which the full payment is made (exclusively).	The interest rate charged is ROBOR at 1 month + 0.07% p.a. The interest will be paid monthly, within a maximum of 8 calendar days from the end of each month.
Societatea Energetica Electrica SA (Electrica)			50,000

Annex 4: Details regarding the legal act of the kind listed in Art. 82 of Law No. 24/2017, concluded by Electrica in Semester I 2020 Group Leader/ Cash Pool Leader: Societatea Energetica Electrica S.A. Participating Company: Electrica Furnizare SA
Company (beneficiary)	Agreement Type and No., execution date	Scope of the agreement	Amount (RON th.)	Date of entry into force	Expiry date	Receivables/Mutual debts	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
Electrica Furnizare SA (EFSA)	Convention regarding the Internal Treasury no. 25 / 05.02.2020	Credit facility	30,000	5 Feb 2020	20 Dec 2020	RON 1.9 th. receivable of Electrica from EFSA	0	In the event that either Party does not pay the other Party any amount due, the amount due shall bear penalty interest equal to the current interest plus a margin of 0.5% p.a. This penalty interest will be applied to any amount due on the due date (including the respective date) until the date on which the full payment is made (exclusively).	The interest rate charged is ROBOR at 1 month + 0.07% p.a. The interest will be paid monthly, within a maximum of 8 calendar days from the end of each month.
Societatea Energetica Electrica SA (Electrica)			180,000

Annex 5: Details regarding the legal act of the kind listed in Art. 82 of Law No. 24/2017, concluded by Electrica in Semester I 2020 Group Leader/ Cash Pool Leader: Societatea Energetica Electrica S.A. Participating Company: Societatea Filiala de Intretinere si Servicii Energetice Electrica Serv SA
Company (beneficiary)	Agreement Type and No., execution date	Scope of the agreement	Amount (RON th.)	Date of entry into force	Expiry date	Receivables/Mutual debts	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
Societatea Filiala de Intretinere si Servicii Energetice Electrica Serv SA (SERV)	Convention regarding the Internal Treasury no. 26 / 05.02.2020	Credit facility	10,000	5 Feb 2020	20 Dec 2020	RON 1,795.4 th. receivable of Electrica from SERV	0	In the event that either Party does not pay the other Party any amount due, the amount due shall bear penalty interest equal to the current interest plus a margin of 0.5% p.a. This penalty interest will be applied to any amount due on the due date (including the respective date) until the date on which the full payment is made (exclusively).	The interest rate charged is ROBOR at 1 month + 0.07% p.a. The interest will be paid monthly, within a maximum of 8 calendar days from the end of each month.
Societatea Energetica Electrica SA (Electrica)			50,000

Annex 6: Details regarding the legal act of the kind listed in Art. 82 of Law No. 24/2017, concluded by Electrica in Semester I 2020 Group Leader/ Cash Pool Leader: Societatea Energetica Electrica S.A. Participating Company: Societatea Servicii Energetice Muntenia SA
Company (beneficiary)	Agreement Type and No., execution date	Scope of the agreement	Amount (RON th.)	Date of execution/ entry into force	Expiry date	Receivables/Mutual debts	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
Societatea Servicii Energetice Muntenia SA (SEM)	Convention regarding the Internal Treasury no. 27 / 05.02.2020	Credit facility	2,000	5 Feb 2020	20 Dec 2020	RON 5,544.0 th. receivable of Electrica from Societatea SEM	0	In the event that either Party does not pay the other Party any amount due, the amount due shall bear penalty interest equal to the current interest plus a margin of 0.5% p.a. This penalty interest will be applied to any amount due on the due date (including the respective date) until the date on which the full payment is made (exclusively).	The interest rate charged is ROBOR at 1 month + 0.07% p.a. The interest will be paid monthly, within a maximum of 8 calendar days from the end of each month.
Societatea Energetica Electrica SA (Electrica)			2,000

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RNS metadata

Title: Cash-pooling conventions with subsidiaries
Time: 14:30:28
Date: 7 Feb 2020
Category: Miscellaneous
ID: 3841C