PHOENIX (PHO): Photon Energy announces the signing of contracts relating to the financing of the 1.159 MWp Slavkov PV plant - raport 72

The Management Board of Photon Energy announces on 6 November 2010 that on 5 November 2010 the company signed a framework agreement between Photon Energy a.s, its fully owned subsidiary Photon SPV 6 s.r.o., Raiffeisen - Leasing Real Estate, s.r.o. (in the following “RLRE") and Raiffeisen FinCorp, s.r.o. (in the following “RFC") in relation to the construction of the Slavkov photovoltaic plant with an installed capacity of 1.159 MWp with the following key terms:

• Photon Energy sells its 100% equity stake in Photon SPV 6 s.r.o. to RLRE for the nominal consideration of CZK 200,000 (EUR 8,135 or PLN 31,852).

• Photon Energy provides Photon SPV 6 s.r.o. with a subordinated loan of up to CZK 73.8 million (EUR 3.002 million or PLN 11.753 million) at 3M PRIBOR + 6.45%. The subordinated loan is pledged to RLRE.

• RFC provides a senior loan in 3 tranches, i.e. CZK 37.6 million (EUR 1.529 million or PLN 5.988 million) after signing, CZK 18.2 million (EUR 0.740 million or PLN 2.899 million) subject to grid connection in 2010 and CZK 21.0 million (EUR 0.854 million or PLN 3.344 million) subject to the impact of the announced retroactive changes to the regulatory framework and taxation in the Czech Republic and payable by 31 December 2011. The senior loan bears interest of 3M PRIBOR + 5.45%.

• Photon Energy's fully owned engineering subsidiary Photon Engineering s.r.o. signed a turnkey EPC contract for the construction of the 1.159 MWp PV plant in Slavkov for a fixed price of CZK 95.952 million (EUR 3.903 million or PLN 15.281 million) with Photon SPV 6 s.r.o.

• Photon Energy's fully owned operations and maintenance (O & M) subsidiary Photon Management s.r.o. signed a full-service O & M contract with Photon SPV 6 s.r.o. at market conditions

• Photon Energy has a call option to repurchase the 100% equity stake in Photon SPV s.r.o. from RLRE starting after three years for the consideration of CZK 200,000 (EUR 8,135 or PLN 31,852) subject to the full repayment of the then outstanding senior loan balance to RFC

• RLRE has a put option to sell its 100% equity stake in Photon SPV 6 s.r.o. to Photon Energy after five years for the consideration of CZK 200,000 (EUR 8,135 or PLN 31,852) triggering the full repayment of the then outstanding senior loan balance to RFC

Photon Energy also agreed to the cross-collateralisation of all projects financed to-date and those still to be financed by RLRE until year-end 2010. This requirement by RLRE and the split of the senior loan into three tranches are a direct result of the uncertainty introduced by the series of retroactive legislation and regulations proposed by the Czech government, including the 26% revenue tax for photovoltaic plants.

The construction of the PV plant in Slavkov has been initiated by Photon SPV 6 s.r.o. in early August and to date it has been financed by a shareholder loan by Photon Energy, which has now been subordinated in the transaction with RLRE. Based on the progress in the construction process and current knowledge Photon Energy is confident that the PV plant in Slavkov will be completed and connected to the grid during December 2010.

Photon Energy and its board members are unrelated to RLRE and RFC.

Legal basis: § 3 ust.2. of the Appendix 1 to Resolution No. 363/2009 of the Warsaw Stock Exchange Management Board dated 27 July 2009 "Current and Periodical Information in the Alternative Trading System".

Osoby reprezentujące spółkę:
Michal Gärtner - Chairman of the Board of Directors
Georg Hotar - Vice-chairman of the Board of Directors