KGHM renews long-term syndicated credit facility in the amount of USD 1.5 bn

On December 2, 2025, KGHM Polska Miedź S.A. has entered into an unsecured revolving credit facility agreement with an international consortium of banks in the amount of USD 1 500 mn. The RCF agreement reflects the global banking sector's confidence in KGHM and confirms its stable business foundations. The signed agreement will allow for the extension of the average maturity of available financing sources, securing the Company's liquidity needs in the coming years.

- The signed agreement confirms the trust that KGHM Polska Miedź is perceived among its global partners in the financial sector for many years. Stable business foundations, as well as good forecasts for the copper market and a diversified structure of financing sources, enable the implementation of the Company's operational and development plans, while maintaining cost discipline, said Andrzej Szydło, President & CEO, KGHM Polska Miedź S.A. KGHM's priority in the coming years is to implement ambitious investment plans that will not only secure the Company's mining capabilities, but also contribute to its long-term value growth - he added.

- Cooperation with the commercial banking sector is one of the three main pillars of the portfolio of KGHM’s external financing sources. Both the successful bond issue in the amount of PLN 1 600 mn in recent days and the trust placed in us by the consortium participants in the amount of USD 1 500 mn confirm the confidence of the financial market in the broad sense, said Piotr Krzyżewski, Vice President & CFO. This is positive feedback from our partners that our financial policy, focused on liquidity security and well-understood cost efficiency, is the right direction, and we do not plan to stray from this path, he emphasized.

Transaction structure

The Agreement was concluded for five-year tenor and has two one-year extension options exercisable at the request of the Company (at the discretion of each syndicate member). 

The Agreement includes a non-binding option to increase the amount of the credit facility by a total amount not exceeding USD 500 mn within 36 months of its signing, with the total amount of the revolving credit facility up to USD 2 000 mn. 

The terms concerning the accordion will be identical to the terms of the committed amount. The credit facility will replace the current revolving syndicate credit facility in the amount of USD 1 500 mn dated 20 December 2019 (which was announced by the Company via a regulatory filing no. 38/2019). Following the signing of the aforementioned syndicated credit facility Agreement, the credit facility agreement from 2019 will be terminated.

According to the Agreement, the credit facility may be drawn in USD in the form of renewable tranches. The funds obtained from the credit facility will be used to finance general corporate purposes, including capital expenditures and/or current operations of the Company and companies of the KGHM Polska Miedź S.A. Group.

Global partners of KGHM

The credit facility was arranged with a banks group based in Poland and abroad. The title of Global Coordinator was granted to UniCredit S.p.A., the title of Mandated Lead Arranger and Bookrunner was granted to Bank Polska Kasa Opieki S.A., Intesa Sanpaolo S.p.A. Spółka Akcyjna Oddział w Polsce, Santander Bank Polska S.A. and Powszechna Kasa Oszczędności Bank Polski S.A. and the title of Lead Arranger was granted to Bank Millennium S.A., Erste Group Bank AG, Standard Chartered Bank AG, Bank of China (Europe) S.A. Spółka Akcyjna Oddział w Polsce, Industrial and Commercial Bank of China S.A. (Europe) S.A. (Spółka Akcyjna) Oddział w Polsce, HSBC Continental Europe S.A., BNP Paribas Bank Polska S.A., Credit Agricole Bank Polska S.A, ING Bank Śląski S.A. and CaixaBank S.A. (Spółka Akcyjna) Oddział w Polsce.

Interest on the credit facility was set based on the SOFR base rate plus a margin, which depends on the net debt/EBITDA financial ratio. Other provisions of the agreement are in accordance with the standard terms of these types of transactions.