Eighth public bond issue programme

Today, the Management Board of KRUK S.A. has passed a resolution to establish the Eighth Public Bond Issue Programme, whereby KRUK will be able to issue public bonds with a total nominal value of up to PLN 700m under a prospectus for a year from the date of its approval by the Polish Financial Supervision Authority. Individual bond issues may differ with respect to their terms and conditions, particularly the rules for determining the interest rate. Detailed terms and conditions of each bond series will be provided in the prospectus and in the final terms and conditions of that series. KRUK still has its Seventh Bond Issue Programme open, under which bonds may be issued until August 23rd 2021.

‘We are about to commence the documentation approval process before the Polish Financial Supervision Authority. Once it is successfully completed, we will be able to launch our eighth bond programme under a prospectus. Like the ongoing seventh programme, under which two series of bonds have been issued so far, this new programme is intended mainly for retail investors, but it may also include tranches for institutional investors. As before, the maximum total value of the eighth bond programme is PLN 700m,’ said Piotr Krupa, President of the KRUK Management Board. ‘We use the issue proceeds to finance the Group’s investing and operating activities. Our investments in the first quarter of 2021, which were above budget, warrant a greater appetite for further portfolio purchases and justify the decision to pursue another bond programme. As we have noted many times, bonds are an important source of financing for KRUK, helping to diversify its funding base.

KRUK has issued PLN 2.5bn worth of unsecured bonds, with PLN 1.2bn repurchased to date.   The Company plans to redeem another PLN 475m of bonds by the end of 2021, including PLN 135m in May. The successive series of KRUK bonds have been listed in the Catalyst trading system for a decade, which makes KRUK one of the largest corporate bond issuers in Poland with an established position and a strong operating history.