PTT Global Chemical PCL : Signing of the Renewal Inter-Company Borrowing & Lending Agreement between PTTGC and PTT

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PTT Global Chemical Public Company Limited

Registration No. 010755400026 7

Head Office : 555/1 Energy Complex, Building A,

Rayong Office : 59, Ratniyom Road, Noenphra,

• !?!!RL CHEMICRL

  14th-18th Floor, Vibhavadi Rangsit Road,

  Mueang Rayong, Rayong 21150 Thailand.

  Chatuchak, Chatuchak, Bangkok 10900 Thailand.

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  (Translation)

  Ref. No.t6 - s,r /2016 December 20, 2016

  Subject: Signing of the Renewal Inter-Company Borrowing & Lending Agreement between PTTGC and PTT To: President. The Stock Exchange of Thailand

  Reference: PTTGC's letter No. 16-048/2015 dated on December 21, 2015 on the signing of the Inter-Company Borrowing & Lending Agreement between PTTGC and PTT

  Reference is made to the letter from PTT Global Chemical Public Company Limited ("PTTGC") to the Stock Exchange of Thailand notifying the signing of the Inter-Company Borrowing & Lending Agreement ("ICBL") between PTTGC and PTT Public Company Limited ("PTT") dated on December 21, 2015 .

  The Board of Directors of PTTGC in its meeting No. 10/2012 dated October 26, 2012 has approved to proceed the short-term liquidity management between PTTGC and PTT, a major shareholder of PTTGC which holds 48.89 %, and authorized Chief Executive Officer ("CEO") or those delegated by CEO to have the authority to negotiate on the transaction and define the details of the ICBL between PTTGC and PTT by preparing the loan agreement and I or any other related contracts. including the renewalof the loan agreement for a further term of not more than 1 year.

  In this regard, PTTGC is pleased to inform that the loan agreement as disclosure to the Stock Exchange of Thailand in the letter No. 16-048/2015 has expired on December 19, 2016 and currently PTTGC has renewed the ICBL between PTTGC and PTT for 1 year.where the details of the transac tion is in accordance with the original agreement and detailed as follow.

• Description

Transaction Date	December 20, 2016
The related contractual parties and their relationship	PTT Public Company Limited Major Shareholder of PTTGC. which holds 48.89%
Objective	To increase efficiency of PTTGC's short-term liquidity management
Transaction	To receive financial assistance	To provide financial assistance
Short-term borrowing	Short-term lending
The Characteristic	Uncommitted Unsecured Short-term Loan	Uncommitted Unsecured Short-term Loan
Currency	Thai Baht or US Dollar. as it is agreed	Thai Baht or US Dollar, as it is agreed
Contract Period	1 year (Dec. 20, 2016 - Dec. 19, 2017)	1 year (Dec. 20, 2016 - Dec. 19, 2017)

The total value of transaction and the criteria of evaluation of transaction	Calculated from the annual interest expense	Calculated from principle and annual interest income.
	Loan size not exceeding Baht 5,ooo million	Loan size not exceeding Baht 2,000 million
	Total value of the transactions (Both borrowing and lending) is less than 3% of PTTGC's Net Tangible Assets as at September 30, 2016
Interest Rate	Normal interest rate is based on market rate. With the interest rate on short term loans: BIBOR (Bangkok Interbank Offered Rate) or LIBOR (London Interbank Offered Rate) plus Interest Rate Spread by taking into account on the return on investment, short-te rm interest rate and credit rating of PTTGC, which is equivalent to or lower than the interest rate on loans from financial institutions	Normal interest rate is based on market rate. With the interest rate on short term loans: BIBOR (Bangkok Interbank Offered Rate) or LIBOR (London Interbank Offered Rate) plus Interest Rate Spread by taking into account on the return on investment , short-term interest rate and credit rating of the borrowing company, which is equivalent to or better than PTTGC's cost of capital
Source of Fund	n/a	Working Capital
Termination of the Contract	With notice of not less than 5 working days

The transaction is a connected transaction under the disclosure of information concerning the connected transaction on giving or receiving financial assistance with the transaction size less than 3% of PTTGC's net tangible assets as of September 30, 2016.

Please be informed accordingly. Sincerely yours,

Miss Ouangkamol Settanung

Executive Vice President - Finance and Accounting

Corporate Finance and Investor Relations

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