The aggregate value of available overdraft limits and multi-purpose credit facilities available to the Group as at December 31st 2015 was PLN 650,355 thousand.

Those overdraft limits and multi-purpose credit facilities, along with the long-term credit facilities secured under the “New Financing” package, totalling PLN 1,934,629 thousand as at December 31st 2015, represent financial resources which are sufficient to service current and future liabilities of the Group.

Importantly, the Group maintains high amounts of excess cash, including in bank deposits (PLN 1,244,891 thousand as at December 31st 2015), and therefore the risk of liquidity loss is very low.

In 2015, the Grupa Azoty Group increased its borrowings from PLN 986,191 thousand to PLN 1,166,330 thousand, of which the Parent’s borrowings rose from PLN 790,239 thousand to PLN 984,512 thousand.

At the same time, after previous borrowings were refinanced with funds raised under the “New Financing” package, the share of current borrowings in the Group’s total financing decreased substantially, from PLN 509,259 thousand to PLN 118,880 thousand.

In 2015, none of the Group companies defaulted on any of their liabilities or financial covenants where such default would trigger acceleration of the liabilities.

In 2015, the Grupa Azoty Group was not refused any bank loans and none of its credit facility agreements was terminated.

In the opinion of their strategic lenders, the Parent and its subsidiaries have a sound liquidity position and enjoy high credit standing. Considering the above, even if the macroeconomic situation deteriorates, the Company believes that there is no threat or risk which could materially adversely affect its liquidity position or lead to loss of liquidity.

• A centralised Financing Model for the Grupa Azoty Group was implemented, and the Parent obtained a long-term financing package from leading commercial and multilateral banks operating in the Polish and European markets, as a highly secure source of funding for the Group’s Investment Strategy and its day-to-day operations, ensuring uniform terms adequate to the Parent’s standing and potential;
• The Grupa Azoty Group maintained a strong liquidity position while optimising the management of free cash at Group companies, for instance through the use of the cash-pooling arrangement, umbrella sublimits under current account overdraft facilities and multi-purpose facilities as part of the global limits available to the Group, and flexible adjustment of those sublimits to the Group companies’ needs;

• An efficient mechanism was put in place for the redistribution of funds under the intra-group financing agreement with key subsidiaries, in the form of intra-group loans or note issues;
• The Parent’s dividend policy with respect to its subsidiaries reflected the financing requirements of the Parent’s and the subsidiaries’ investment strategy;
• The Financing and Liquidity Management Policy for the Grupa Azoty Group, consistent with the implemented Financing Model, was adopted.