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Conclusion of the Participation Agreement related to consumer credits between Allegro Pay sp. z o.o. and Banco Santander

March 21, 2024 17:41 CET

Current report No. 7/2024

Legal basis: Article 17 of MAR - inside information

The Board of Directors of (the “Company”), hereby announces that on 21 March 2024, Allegro Pay sp. z o.o., a wholly owned subsidiary of the Company (“Allegro Pay”), signed the Participation Agreement related to the consumer credits (the “Agreement”) with Banco Santander S.A., a credit institution organized under the laws of Spain (“Banco Santander”).

The Company presents principles of cooperation under the Agreement.

Allegro Pay may request Banco Santander to participate in certain financed consumer credits, selected by Allegro Pay and accepted by Banco Santander. The financed consumer credits, meaning the right to payment related to the principal amount of consumer credit granted by Allegro Pay, shall meet the eligibility criteria defined in the Agreement. Allegro Pay will remain responsible for debt collection, tracking, reconciliation and transfer of the proceeds of the financed consumer credits to Banco Santander, whereas Allegro Pay shall act for the benefit of Banco Santander only concerning reconciliation and transfer of collected proceeds of financed consumer credits.

The Company is not a party to the Agreement, but it will act as a Guarantor, solely guaranteeing obligations of Allegro Pay but not the performance of the customers who are debtors under the consumer credits.

Under the Agreement, Banco Santander shall participate in the proposed financed consumer credits on a revolving basis up to a total amount of PLN 3 billion. The initial limit granted is PLN 1 billion. An additional PLN 2 billion is optional for Banco Santander.

The Agreement is concluded for an indefinite period, with a 6-month notice period reserved for both parties and with no exclusivity established.

Management expects, based on advice from our accounting advisor, that the consumer loans selected for participation under this agreement should be derecognised from both Allegro Pay’s and the Group’s balance sheets. The right to receive consumer loans repayments will be immediately transferred to Banco Santander. Signing the Agreement increases the financing capabilities of Allegro Pay, which continues to expand its offer of safe and convenient loan and financing options for the Allegro clients. is a Luxembourg public limited company (société anonyme), registered office: 1, rue Hildegard von Bingen, L-1282 Luxembourg, Grand Duchy of Luxembourg, Luxembourg Business Register: B214830