KRUK announces new bond issue, plans another bond programme

On May 16th 2022, KRUK published the Final Terms and Conditions of its Series AM3 bonds. The bonds will be issued in a public offering under the Eighth Bond Programme at the issue price equal to their nominal value. The issue price will be PLN 100 per bond, and the total nominal value of the entire series will be PLN 50m. The bonds will bear interest at a floating rate, based on 3M WIBOR plus a fixed margin of 3.30 percentage points per annum. The offering will be carried out by a distribution syndicate comprising: Dom Maklerski BDM S.A., Powszechna Kasa Oszczędności Bank Polski S.A. – Biuro Maklerskie, Michael / Ström Dom Maklerski S.A., Bank Polska Kasa Opieki S.A. – Biuro Maklerskie Pekao, Noble Securities S.A. and Ipopema Securities S.A. 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.

‘This marks another prospectus issue of debt securities intended for retail investors. Previous issues attracted very strong demand leading to subscription reductions. Subscriptions for the PLN 50m Series AM3 bonds issued in the current offering open on May 18th and close on May 31st 2022,’ explained Piotr Krupa, KRUK CEO. ‘We had a very strong start into the year in terms of investments, record recoveries and record first-quarter results. We are now working hard in every market where we operate, from the Baltic to the Mediterranean. We are satisfied with the opportunities the markets offer and with our progress in operationalising our strategy. Let me remind you the strategy puts investment and operational excellence and digital transformation at its core. Proceeds raised from bond issues, and additionally from bank sources, will help us deliver our plans.

The offering of Series AM3 bonds will be conducted on the basis of the Prospectus for KRUK’s Eighth Bond Programme, approved by the Polish Financial Supervision Authority on September 3rd 2021. KRUK may issue bonds under the Prospectus until early September 2022. The nominal value of the entire programme is PLN 700m, with PLN 100m issued by KRUK to date. The Final Terms and Conditions of Series AM3 bonds are available on the Company’s website at https://pl.kruk.eu/relacje-inwestorskie/obligacje/emisje-obligacji, as well as on the website of Dom Maklerski BDM S.A. at www.bdm.pl.

Furthermore, on May 13th 2022 KRUK’s Management Board passed a resolution establishing the Ninth Public Bond 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.

‘Retail bond offerings are an important source of diversified finance for KRUK,’ said Piotr Krupa, KRUK CEO. ‘The current programme is valid until the beginning of September, and we are starting work well in advance to be able to seamlessly offer new securities to investors – always taking into account the available financing sources as well as investment opportunities available on the market, which have been abundant recently,’ concluded Mr Krupa.

The only legally binding documents containing information on the Issuer and the Public Offering of Series AM3 Bonds are the Base Prospectus for the Eighth Bond Programme, published on September 7th 2021, Supplements to the Base Prospectus and the Final Terms and Conditions of Series AM3 Bonds published on May 16th 2022, available on the Issuer’s website www.kruksa.pl and additionally, for information purposes, on the website of the Investment Firm at www.bdm.pl Subscription orders for Series AM3 bonds will be accepted by the Investment Firm, i.e. Dom Maklerski BDM S.A., and members of the distribution syndicate.