Subject: Adoption of a financial asset management policy
Legal basis: Art. 17 of MAR inside information
The Management Board of CD PROJEKT S.A. with its registered office in Warsaw (the “Company”), hereby publicly discloses information concerning adoption by the Company of a financial asset management policy. The adopted policy supersedes preexisting regulations related to these matters, which were originally disclosed by the Company in Current Report no. 8/2022 of March 25, 2022.
The basic provisions of the policy are as follows:
i. The term “Financial Assets” is assumed to mean the aggregate liquid financial assets held by the Company in the form of cash, bank deposits and debt instruments.
ii. The Company may hold not more than 80% of the total value of Financial Assets in debt instruments.
iii. The Company is obligated to ensure diversification in allocating its Financial Assets whenever the total value of such assets is at least 50 million PLN, taking into account the following restrictions:
a) At the moment of depositing cash assets or purchasing debt instruments the maximum allocation of Financial Assets to any single counterparty (bank or issuer of debt instruments) shall be 40% of the total value of Financial Assets.
b) At the moment of depositing cash assets or purchasing debt instruments the maximum allocation of Financial Assets in any single country shall be 70% of the total value of Financial Assets.
iv. The bank at which the Company deposits its Financial Assets, or the issuer whose debt instruments are purchased by the Company, must possess a rating issued by at least one of the following rating agencies: Fitch, Moody’s or Standard & Poor’s; the rating of a bank on the deposition date of Financial Assets may not be lower than BBB/Baa2; the Company may purchase debt instruments from issuers whose rating is not lower than the current rating of Poland.
v. The Company is permitted to hold unhedged foreign currency positions in the amount of up to 1.5% of the total value of Financial Assets. Any additional foreign currency exposure should be hedged using the natural hedging strategy or derivative instruments.
Disclaimer: This English language translation has been prepared solely for the convenience of English-speaking readers. Despite all the efforts devoted to this translation, certain discrepancies, omissions or approximations may exist. In case of any differences between the Polish and the English versions, the Polish version shall prevail. CD PROJEKT, its representatives and employees decline all responsibility in this regard.