First bond issue launched by KRUK under Seventh Bond Programme

On September 7th 2020, KRUK published the Final Terms and Conditions of Series AK1 bonds (the “Bonds”). The Bonds will be distributed via a public offering at an issue price equal to their nominal value of PLN 100 per Bond, with the aggregate nominal value not to exceed PLN 25m. The Bonds bear interest at a fixed rate of 4.8 percentage points per annum. The offering will be carried out by a distribution consortium comprising: Dom Maklerski BDM, Noble Securities, Michael / Ström Dom Maklerski, Dom Maklerski BOŚ and Ipopema Securities. The Bonds will exist in book-entry form and the Company will apply for their admission to trading on the Catalyst regulated market operated by the Warsaw Stock Exchange.

“We are getting signals from the market that our bonds are eagerly awaited by investors. In addition, as an issuer of long standing, KRUK wants to be present also when the market needs stabilisation and return to pre-pandemic regularity. As our Prospectus was approved in August by the Polish Financial Supervision Authority, we are now launching the first bond issue of PLN 25m for retail investors,” said Piotr Krupa, President of the Management Board of KRUK S.A. “It will be one of the sources of financing the Group’s operations ahead of an expected increase in the supply of debt portfolios later this year.We offer a fixed interest rate of 4.8% per year, responding to investor expectations in the low rate environment. The subscription period will open on September 10th and continue until September 23rd 2020,” added Piotr Krupa.

The Bond offering will be conducted on the basis of the Prospectus for KRUK’s Seventh Bond Programme, approved by the Polish Financial Supervision Authority on August 24th 2020. On its basis, KRUK is able to issue Bonds for one year from the approval date. The nominal value of the entire programme is PLN 700m. The Final Terms and Conditions of Series AK1 Bonds have been published on the Company’s website at www.kruksa.pl in the Bonds section as well as, for information purposes, on the website of Dom Maklerski BDM S.A., at www.bdm.pl.

The only legally binding documents containing information on the Issuer and the Public Offering of Series AK1 Bonds are the Base Prospectus for the Seventh Bond Programme, published on August 25th 2020, Supplements to the Base Prospectus and the Final Terms and Conditions of Series AK1 Bonds published on September 7th 2020, available on the Issuer’s websitewww.kruksa.pl and additionally, for information purposes, on the website of the Investment Firm at www.bdm.pl.Subscription orders for Series AK1 Bonds will be accepted by the Investment Firm, i.e. Dom Maklerski BDM S.A., and members of the distribution consortium.