The KRUK Group, present in seven debt management markets in Europe, has signed another agreement for a revolving credit, for the first time with an international syndicate of four banks: Norway’s DNB Bank and Poland’s, Bank Zachodni WBK, mBank and ING Bank Śląski. This multi-currency facility with maximum amount of utilisations of EUR 250m, with the euro as the base currency, can be used to finance or refinance debt purchases in European markets other than Poland.
“With this agreement, which is very important given our strong growth in Europe, the amounts available under our lines of credit have almost tripled. The financing amount has been selected deliberately, bearing in mind the high supply of debt in our markets. This flexible and cost-effective source of funding for portfolio purchases will provide us with competitive advantage and a natural hedge against currency risk through appropriate matching of assets and liabilities. In the future, the financing may be changed as needed. This is another milestone in our history − the investment made together with the World Bank, interest from major investment bank analysts, and now the credit facility agreement with an international bank syndicate, all confirm that KRUK has joined the group of top-notch global financial institutions,” said Piotr Krupa, President of the Management Board of KRUK S.A.
KRUK continues geographical diversification of its business. In Q1 2017, it invested PLN 214m, of which 90% was spent in markets other than Poland. Recoveries from debt portfolios in foreign markets for the first time exceeded those in Poland.
“In purchasing debt, whether in Poland or abroad, we are not limited by access to capital. The new agreement paves the way for further geographical diversification. While Poland will remain a key market, its share in our fast-growing portfolio should naturally decrease in the long run,” Piotr Krupa said.
The Group’s financial situation allows it to continue expansion and increase its debt portfolio purchases. At the end of Q1 2017, the ratio of net debt to equity was 1.1x and has remained near the lowest levels reported in recent years. KRUK concurrently uses several sources of funds, including bank loans and bonds. At the end of Q1 2017, the amount available under credit facilities was PLN 0.7bn and outstanding bonds were PLN 1.2bn.