Current report number 16/2023

Date: 15th September 2023

Subject: Conclusion of a term loan agreement by a subsidiary regardingsignificant financing for the Issuer's Group

General legal basis:

Art. 17 sec. 1 of MAR - inside information

Content:

In reference to the current report no. 29/2021 dated October 22nd 2021and current report no. 2/2022 dated February 10th 2022 and currentreport no. 3/2023 dated February 17th 2023, the Management Board ofArctic Paper S.A. (_quot;Issuer_quot;) informs that on September 15th 2023 ajoint-venture company of the Issuer and Rottneros AB (_quot;Rottneros_quot;) underthe business name Kostrzyn Packaging Sp. z o. o. (_quot;Joint-Venture_quot;)concluded an investment term loan agreement (_quot;Facility Agreement_quot;), upto a total amount of EUR 16,000,000 (_quot;Facility_quot;), which is to be grantedto Joint-Venture as a borrower by Bank Polska Kasa Opieki S.A. as alender (_quot;Lender_quot;) to finance the costs of a project to construct,maintain and operate a new production facility of packaging from moldedcellulose fiber (_quot;Project Costs_quot;).

To secure the claims of the Lender under the Facility Agreement andother related finance documents, Joint-Venture and the Issuer and theRottneros as guarantors ("Guarantors') will establish, amongst others,the following security interests: registered pledge and financial pledgeover shares in Joint-Venture, statements on submission to enforcement bythe Issuer, Rottneros and Joint-Venture, registered pledges andfinancial pledges over bank accounts of Joint-Venture, registeredpledges over assets of Joint-Venture, security over rights underproperty insurance policies of Joint-Venture, guarantees securing thepayment of the principal amount of the Facility by the Guarantors, aguarantee to cover excess Project Costs up to the agreed amount and asubordination agreement between the Lender, Joint-Venture and theGuarantors.

The Management Board of Arctic Paper S.A. in current report no. 3/2023dated February 17th, 2023, informed investors about the decision tostart work in connection with the scope of the Joint-Venture'sactivities, including sources of financing through shareholders' owncontributions and bank loans.

Below the Issuer provides detailed information regarding terms andconditions of the Facility Agreement:

1. total amount of financing: the equivalent of EUR 16 million;

2. currency: EUR;

3. facilities: investment term loan;

4. financing period: seven years from the date of the conclusion of theFacility Agreement;

5. repayment conditions: 53,4% of the Facility will be repaid ininstalments paid every three months starting from September 2025. Theremaining part will be repaid on the final maturity date of the Facility;

6. interest rate: interest at a floating rate based on the EURIBOR basereference rate and variable margin; and

7. security: The Facility will be secured by a security packageestablished in connection with the Facility Agreement for its durationand indicated above.

The disbursement of funds under the Facility, is conditional on thefulfilment of conditions precedent provided in the Facility Agreement bythe Joint-Venture and the Guarantors, including standard conditionsprecedent.

The terms and conditions of the Facility Agreement do not differ fromthe provisions commonly used for this type of agreements.

Specific legal basis:

Art. 17 sec. 1 of Regulation (EU) No. 596/2014 of the EuropeanParliament and of the Council of 16 April 2014 on market abuse (marketabuse regulation) and repealing Directive 2003/6/EC of the EuropeanParliament and of the Council and Commission Directives 2003/124/EC,2003/125/EC and 2004/72/EC.