Subject: Change in decision concerning diversification of investment of surplus cash assets held by the Company
Legal basis: Art. 17 of MAR inside information
In relation to information disclosed in Current Report no. 4/2020 of 6 May 2020 and Current Report no. 5/2021 of 21 January 2021, the Management Board of CD PROJEKT S.A. with a registered office in Warsaw at Jagiellońska 74 (“the Company”) hereby publicly discloses its decision to modify existing policies concerning diversification of surplus current cash. The updated policy specifies that debt instruments held by the Company may account for not more than 80% of the Company’s current financial assets (“Financial Assets”), which are defined as the sum of the following: cash and cash equivalents, bank deposits with maturity periods longer than 3 months, Polish State Treasury bonds, other bonds guaranteed by the Polish State Treasury, bonds issued by foreign governments and bonds guaranteed by foreign governments, together with the corresponding forward hedging transactions. The Financial Assets may be invested in the following types of bonds:
a) domestic State Treasury bonds,
b) domestic bonds guaranteed by the State Treasury,
c) foreign treasury bonds issued by countries with a Moody’s rating of at least Aa3,
d) foreign bonds guaranteed by countries with a Moody’s rating of at least Aa3.
The updated policy upholds the rule that foreign exchange rate risks associated with holding foreign bonds are to be mitigated by entering into offsetting purchase transactions concerning derivative instruments, particularly forward currency sale contracts, subject to a provision that up to 15% of Financial Assets may be held in unhedged positions denominated in either USD or EUR.
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.