KRUK has issued record-breaking PLN 330m worth of bonds to institutional investors, bearing interest at 3.7% plus 3M WIBOR

KRUK has announced today that it allotted to investors PLN 330m worth of six-year unsecured Series AL1 bonds, under the First Bond Issue Programme without a Prospectus. The bonds were offered to institutional investors. The price per bond is equal to its par value, i.e. PLN 1,000. The bonds bear interest at a variable rate of 3M WIBOR plus a margin of 3.7 pp per annum.

‘Today, we allotted to investors bonds with the highest ever total nominal value in a single issue carried out by KRUK. After an interval of nearly two years, we are returning to the primary market of institutional investor with great success. The issue of six-year unsecured bonds is record-breaking in terms of size, with a margin of 3.7% above the 3M WIBOR rate. The cost is 0.3 pp lower than in the case of the most recent issue of PLN 50m worth of bonds offered to institutional investors in June 2019, while the issue size is almost seven times larger. For KRUK it is already a third bond issue this year, after two series targeted at retail investors with an aggregate nominal value of PLN 90m. Subscription has also been launched for another series of prospectus-based bonds of up to PLN 65m. These bonds will be five-year instruments bearing interest at a fixed rate of 4%. Subscription orders will be received until July 7th by a consortium led by Beskidzki Dom Maklerski, with Dom Maklerski PKO BP among other members’ commented Piotr Krupa, CEO of KRUK S.A. ‘The market of debt portfolio sales, particularly in Poland, has returned to pre-pandemic levels of activity. We can see multiple investment projects both in Poland and on foreign markets. We enjoy a strong financial and liquidity position and can still markedly increase our leverage (the KRUK Group’s net financial debt to equity ratio was 0.9x at the end of March 2021). We have worked hard over the recent quarters and years on each market, streamlining our operational processes. Today, our investment appetite is high, and apart from existing credit facilities, bond proceeds, this time from institutional investors, are an important source of financing for the KRUK Group,’ concluded Piotr Krupa.

The only legally binding documents containing information on the Issuer and the Public Offering of Series AK4 Bonds are the Base Prospectus for the Seventh Bond Programme, published on August 25th 2020, Supplements to the Base Prospectus and the Final Terms and Conditions of Series AK4 Bonds published on June 23rd 2021, available on the Issuer’s website www.kruksa.pl and additionally, for information purposes, on the website of the Investment Firm at www.bdm.pl.Subscription orders for Series AK4 Bonds will be accepted by the Investment Firm, i.e. Dom Maklerski BDM S.A., and members of the distribution consortium.