Consent from the Podravka d.d. Supervisory Board for the issuing of commercial papers
The issue of commercial papers will allow for the establishment and expansion of the base of investors, the diversification of sources of financing, and a shift from traditional banking credit lines, as well as lower costs of financing. This will mean flexibility of financing and an active presence on the money and capital markets.
At a Supervisory Board meeting held on 15 February 2002, consent was given for Podravka d.d. to issue commercial papers. This involves the programme of issuing commercial papers for up to 150 million kuna, which would, in addition to the current needs of Podravka, also satisfy the needs for additional funds in the future. The stated amount represents the maximum value of commercial papers to be issued. The programme of issuing commercial papers will be arranged by Privredna Banka d.d. for a time span of 5 years. As the issuing Agent, this bank will underwrite the entire issue of commercial papers without including a currency clause.
In addition to positive financial effects, the issue of commercial papers will contribute to the high reputation of Podravka on the Croatian market. It will also allow for the establishment and expansion of the base of investors, the diversification of sources of financing, and a shift from traditional banking credit lines, as well as lower costs of financing. This will mean flexibility of financing and an active presence on the money and capital markets.
