KRUK’s first bond offering in 2025 targets retail investors

On 17 January 2025, KRUK published the Final Terms and Conditions of its Series AP3 bonds. The bonds will be issued in a public offering under the 11th Bond Programme at an issue price equal to their nominal value. The issue price per bond will be PLN 100. The offering will comprise bonds with a total nominal value of PLN 70 million, with the proviso that the Company may increase the total number of bonds offered to a maximum nominal value of PLN 100 million. The final number and total value of the bonds will be determined based on subscriptions received, after the close of the subscription period and prior to the adoption of an allocation resolution by the KRUK Management Board, on 5 February 2025. The six-year bonds will bear interest at a floating rate, based on 3M WIBOR plus a fixed margin of 2.80 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., Noble Securities S.A., Ipopema Securities S.A., Bank Polska Kasa Opieki S.A. – Biuro Maklerskie Pekao, Dom Inwestycyjny Xelion sp. z o.o., and Dom Maklerski Banku Ochrony Środowiska 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.

“2024 was an excellent year for us, marked by the successful placement of five bond series for retail investors, raising a total of PLN 370 million. Investor demand for these bonds exceeded PLN 1.2 billion in subscriptions. In light of this strong interest and our investment needs, we have decided to dedicate our first bond offering of 2025 to this group of investors, with whom we have been collaborating for over 11 years. We appreciate their trust. Similar to the previous issuance, we are providing the option to increase this offering, up to a maximum of PLN 100 million. Subscriptions for the six-year Series AP3 bonds will be open from 21 January to 4 February, including that date,” said Piotr Krupa, KRUK S.A. founder and CEO. “We are expanding across five major European markets, including France, a new addition for us. In 2024, we invested PLN 2.8 billion in debt portfolios and achieved recoveries of PLN 3.5 billion. We are at a strong point in our development, and just yesterday, we unveiled our new strategy for 2025-2029. Our ambitions are high, but we have a clear plan and strategy to achieve them. Funds from available credit lines and bond issuances play a crucial role in supporting our goals.”

The offering of Series AP3 bonds will be conducted under the 11th Bond Programme Prospectus, which was approved by the Polish Financial Supervision Authority on 18 September 2024. Under the Prospectus, KRUK may issue bonds with a total nominal value of up to PLN 900 million until September 2025 (including the bonds issued as part of Series AP1 and AP2). The Final Terms and Conditions of Series AP3 bonds are available on the Company’s website at https://pl.kruk.eu/relacje-inwestorskie/obligacje/emisje-obligacji.

This material has been prepared for promotional (advertising) purposes only. The only legally binding documents containing information on the Issuer and the Public Offering of Series AP3 Bonds are the Base Prospectus for the 11th Bond Programme, published on 19 September 2024 (the “Prospectus”), including its supplements and updates, and the Final Terms and Conditions of Series AP3 Bonds, published on 17 January 2025 (the “Terms and Conditions”). The Prospectus is available on the Issuer’s website at https://go.kruk.eu/peo_xi, and the Final Terms and Conditions are available at https://go.kruk.eu/OWE_AP3. For information purposes, the Prospectus and the Terms and Conditions can also be found on the Investment Firm’s website at www.bdm.pl.

Approval of the Prospectus by the Financial Supervision Authority should not be construed as an endorsement of the Series AP3 Bonds. Prospective investors should read the Prospectus thoroughly before making an investment decision, to fully understand the potential risks and rewards associated with investing in the Series AP3 Bonds. In particular, investors are advised that the Series AP3 Bonds are not bank deposits and are not covered by the deposit guarantee scheme. In the event of the Issuer’s insolvency, due to a deterioration in its financial condition, such as a loss of liquidity or changing capital market conditions, part or all of the invested capital may be lost, and holders of Series AP3 Bonds may not receive the payments outlined in the Final Terms and Conditions. Given these risks, investors should carefully assess whether an investment in Series AP3 Bonds is suitable for them, and whether their investment portfolio is sufficiently diversified. Subscription orders for Series AP3 Bonds will be received by the Investment Firm, i.e., Dom Maklerski BDM S.A. and members of the distribution syndicate.

This communication and its contents are not intended for direct or indirect distribution in, or to residents of, the United States of America, United Kingdom, Australia, Canada or Japan, or any country where its publication, announcement or distribution would be illegal.