KRUK brings new bond issue to Polish market, plans another bond programme and announces dividend payment

On May 25th 2023, KRUK published the Final Terms and Conditions of its Series AN4 bonds. The bonds will be issued in a public offering under the Ninth 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 4.0 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., Dom Maklerski BOŚ S.A., Noble Securities S.A., Ipopema Securities 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 set another milestone in KRUK’s history having issued EUR 150m worth of bonds in the Nordic market. However, we have not given up on plans to tap the domestic bond market, and today we are bringing to retail investors another, fourth offering of Polish bonds under the Ninth Bond Programme. As in the case of the February issue, investors will be able to subscribe for bonds with a total value of PLN 50m, bearing interest at a floating rate based on the variable 3M WIBOR benchmark and a fixed margin of 4%.  Subscriptions for the securities will be accepted from May 29th to and including June 12th by the most numerous distribution syndicate to date,” comments Piotr Krupa, CEO of KRUK S.A.

The offering of Series AN4 bonds will be conducted on the basis of the Prospectus for KRUK’s Ninth Bond Programme, approved by the Polish Financial Supervision Authority on August 23rd 2022. Under the Prospectus, KRUK may issue bonds with a total nominal value of up to PLN 700m until August 2023. The Final Terms and Conditions of Series AN4 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 22nd 2023 KRUK’s Management Board passed a resolution establishing the Tenth 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 interest rate basis. Detailed terms and conditions of each bond series will be provided in the prospectus and in the final terms and conditions of that series.

The Management Board of KRUK S.A. has convened the Annual General Meeting for June 20th 2023. One of the proposed resolutions concerns allocation of net profit for 2022 so that a total amount of nearly PLN 290m would be distributed as dividend of PLN 15 per share among the shareholders, while PLN 515m would be contributed to statutory reserve funds. The Management Board’s recommendation has been endorsed by the Supervisory Board.

“We remain in excellent financial condition, having made a profit of PLN 805m and invested PLN 2.3bn in debt portfolios in 2022. Expanding our international foothold and developing the technological capabilities of our business, we have a strong investment appetite. Strategically, we have recently started to explore the Nordic EUR bond market as an additional source of funding. In Poland, we are launching another bond programme under the prospectus regime. We have earned the confidence of both bond and stock investors.  I would like KRUK to be one of those top-grade companies that can both grow and share a portion of their earnings with owners. Hence, the draft dividend payment resolution proposed to the General Meeting convened for June 20th. We are proposing to share a dividend of PLN 15 per share with our investors – the highest distribution in the 13 years since we went public, while allocating the bulk of last year's profit to reserve funds to support the Group’s continued growth. This year marks the 25th anniversary of KRUK and 12 years of our stock exchange presence. Throughout this period, we have distributed a total of PLN 837m among our shareholders through dividend payments and share repurchases, while our net profit has risen from PLN 66m 2011 to PLN 805m in 2022,” said Piotr Krupa.

The only legally binding documents containing information on the Issuer and the Public Offering of Series AN4 Bonds are the Base Prospectus for the Ninth Bond Programme, published on August 25th 2022, Supplements to the Base Prospectus and the Final Terms and Conditions of Series AN4 Bonds published on May 25th 2023, available on the Issuer’s website at www.kruksa.pl and additionally, for information purposes, on the website of the Investment Firm at www.bdm.pl. Subscription orders for Series AN4 Bonds will be received by the Investment Firm, i.e. Dom Maklerski BDM S.A., and members of the distribution syndicate.