KRUK allots bonds with 56% order reduction and opens subscriptions for additional euro-denominated bond series

On 1 February 2024, KRUK allotted EUR 10m worth of Series AO5EUR Bonds as part of its third offering of euro-denominated bonds to retail investors. Subscriptions totalled EUR 22.8m, entailing a 56% reduction of subscription orders. In response the great interest in the offering, the KRUK Management Board decided to issue an additional series of euro-denominated bonds under its approved Bond Programme Prospectus. The subscription period for the next series, i.e. Series AO6EUR, will begin on 5 February and close on 9 February 2024. The bonds will be issued in a public offering under the Tenth Bond Programme at the issue price equal to their nominal value. The Final Terms and Conditions of Series AO6EUR Bonds were announced by the Company on 1 February 2024. The issue price per bond is EUR 100, and the total nominal value of the Series is EUR 14m. The bonds bear interest at a floating rate, based on 3M EURIBOR® plus a fixed margin of 4.0 percentage point per annum. The offering will be carried out by a distribution syndicate comprising Dom Maklerski BDM S.A., Michael/Ström Dom Maklerski S.A., Bank Polska Kasa Opieki S.A. - Biuro Maklerskie Pekao and Dom Inwestycyjny Xelion sp. z o.o. 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 have seen an immense interest in our euro-denominated bonds in the Polish market. Investors' appetite for investing in the KRUK bonds aligns with our business needs in the coming months, prompting the decision to proceed with an additional EUR 14m worth issue. The subscription period will commence on 5 February and end on 9 February 2024”, comments Piotr Krupa, KRUK S.A. CEO. “We are leveraging this opportune moment in our international expansion, and our position in the major European continues to strengthen. We are growing steadily, focusing on improving our operational and technological processes. Our efforts are recognised by investors and our financing banks, so we encounter no obstacles in securing funding for our further growth.”

The offering of Series AO6EUR Bonds will be conducted on the basis of the Prospectus for KRUK’s Tenth Bond Programme, approved by the Polish Financial Supervision Authority on 11 July 2023. Under the Prospectus, KRUK may issue bonds with a total nominal value of up to PLN 700m until July 2024. The Final Terms and Conditions of Series AO6EUR Bonds are available on the Company’s website at https://go.kruk.eu/OWE_AO6EUR.

This document has been prepared for promotional (advertising) purposes only and is not a securities note or communication of sufficient information on the terms of purchase or subscription for any securities enabling an investor to decide whether to purchase or subscribe for such securities, nor does it constitute or form part of, and should not be construed as, an offer to purchase or subscribe for, or solicitation of an offer to purchase or subscribe for, any securities. The only legally binding documents containing information on the Issuer and the Public Offering of Series AO6EUR Bonds are the Base Prospectus for the Tenth Bond Programme, published on 12 July 2023 (the “Prospectus”), including supplements and updates to the Prospectus, and the Final Terms and Conditions of Series AO6EUR Bonds, published on 1 February 2024 (the “Terms and Conditions”) The Prospectus is available on the Issuer’s website at: https://go.kruk.eu/peo_x. The Terms and Conditions can be accessed on the Issuer’s website at: https://go.kruk.eu/OWE_AO6EUR In addition, the Prospectus and the Terms and Conditions are also available, for information purposes, on the website of the Investment Firm at: www.bdm.pl.

The Polish Financial Supervision Authority’s approval of the Prospectus should not be understood as its endorsement of Series AO6EUR Bonds. Prior to making any investment decision, prospective Investors should read the Prospectus in order to fully understand the potential risks and rewards of investing in Series AO6EUR Bonds. Please be advised that the bonds are not bank deposits (placements) and are not covered by the deposit guarantee scheme. Subscription orders for Series AO6EUR Bonds will be received by the Investment Firm Dom Maklerski BDM S.A., and members of the distribution syndicate.

The bonds will be offered exclusively in Poland.

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.