Significant agreements and obligations

As at 31 December 2019, Alior Bank S.A. did not hold:

  • obligations to the central bank,
  • significant agreements of advances, suretyships and guarantees which do not apply to operating activities, with the exception of a contract of mandate for periodic provision of insurance guarantees constituting an unfunded credit protection, and a framework contract of mandate for periodic provision of counter guarantees, entered into on 8 November 2017 with Powszechny Zakład Ubezpieczeń S.A., and the agreement of 7 December 2018 on synthetic securitisation of a portfolio of business loans up to PLN 1.5 billion, entered into with European Investment Funds (EFI) and the European Investment Bank (EBI) as counterguarantor, which is described in detail in Chapter X, in section Capital management (ICAAP).

In the reporting period, the Bank had obligations resulting from the securities issued, including, in particular, subordinated bonds and Banking Securities, and other financial instruments.

In 2019, the Bank did not enter into and did not terminate any loan and advance agreements outside of the normal scope of the Bank’s business activity.

The entities comprising the Bank’s Group did not grant loans or guarantees together to a single entity or to a subsidiary of that entity whose value would exceed 10% of the Bank’s equity outside of normal business activity

As at 31 December 2019, Alior Bank has held 1564 active guarantees for a total amount of PLN 841,999 thousand. The Banks makes sure that the time structure of the guarantees is appropriate. Active guarantees with less than two years to maturity (1158 items) amounted to PLN 484,935 thousand.

In the reporting period, there were no major transactions within Alior Bank Group with the affiliates otherwise than on arm’s length.

On 11 April 2019, an agreement was signed for the terms of transaction between the Bank, Polski Koncern Naftowy Orlen Spółka Akcyjna (“PKN Orlen”) and Powszechny Zakład Ubezpieczeń Spółka Akcyjna (“PZU”), regarding RUCH S.A. in restructuring, which is described in Chapter VIII. Major events in the activity of Alior Bank Group.

The Bank holds no information about any contracts whereby changes to the proportion of shares held by the existing shareholders and bond holders would be made.

Alior Bank has not issued any securities to provide special control rights towards the Bank. Financial results of Alior Bank Group are consolidated within PZU Group. The Bank’s Supervisory Board includes representatives of PZU SA.