KRUK completes issue of 250,000 Series AK1 bonds with 61% reduction rate applied to subscription orders

On September 25th 2020, KRUK allotted 250,000 Series AK1 ordinary bearer bonds with a total nominal value of PLN 25m. Subscription orders were accepted from September 10th to September 23rd 2020. It was the first issue carried out under the Company’s 7th Bond Programme. Investor interest in the bonds far exceeded the supply being sold, resulting in a reduction rate of 61%.

“We are delighted that demand for our bonds from retail investors, at whom this issue was specifically targeted, proved so strong. The issue was 150% oversubscribed relative to the assumed amount of PLN 25m. This result confirms KRUK’s ability to raise funding through such debt issues, despite the challenging economic climate caused by the ongoing COVID-19 pandemic. KRUK is a solid partner for investors, which is extremely important especially now that the global economy has been so severely shaken by the pandemic,” comments Piotr Krupa, President of the KRUK Management Board. “An increase in the supply of debt portfolios, which we expect in late 2020 and in 2021, will be an argument for further bond issues by KRUK. The ability to raise debt funding from investors is an important aspect of KRUK’s investment activity and a vital element of our diversification strategy, which is why I am happy that our bond offering has again attracted such huge interest from the market,” adds Piotr Krupa.

The AK1 bonds will bear interest at a fixed rate of 4.8 percentage points per annum. The nominal value of the bonds and the issue price were set at PLN 100. The offering was carried out by a distribution consortium comprising: Dom Maklerski BDM, Noble Securities, Michael / Ström Dom Maklerski, Dom Maklerski BOŚ and Ipopema Securities.