KRUK launches AK2 bond issue

On January 29th 2021, KRUK published the Final Terms and Conditions of its Series AK2 bonds. The bonds will be distributed via a public offering at an issue price equal to their nominal value of PLN 100 per bond, with the aggregate nominal value not to exceed PLN 20m. The bonds will bear interest at a fixed rate of 4.2 percentage points per annum. The offering will be carried out by a distribution consortium comprising: Dom Maklerski BDM, Noble Securities, Michael / Ström Dom Maklerski, Dom Maklerski BOŚ and Ipopema Securities. 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.

‘This year, KRUK celebrates the 10th anniversary of the first listing of its bonds on the Catalyst market, and, as an issuer of long standing, the Company wants to make regular offerings to investors. Our stable financial position is underpinned by strong recoveries, and we have good access to finance. We reported record recoveries from purchased portfolios last year, of PLN 1.8bn, up 3% year on year. As at the end of third quarter of 2020, we had PLN 266m in cash and PLN 1.2bn in available undrawn credit facilities. However, in order to maintain regular activity on the bond market, we decided to issue Series AK2 bonds to retail investors. Given our strong liquidity position and the market, we are issuing a bond series that bears a fixed interest rate of 4.2% per annum. The subscription period for Series AK2 bonds will start on February 3rd and end on February 16th 2021,’ explained Piotr Krupa, KRUK CEO. ‘Proceeds will be used to finance general corporate needs. In the fourth quarter of 2020, a challenging pandemic year, the supply of portfolios recorded growth, particularly on the Polish market, and our investment levels came close to those reported in the fourth quarter of 2019. We are ready to continue our investments in the coming quarters of 2021,’ Piotr Krupa added.

The bond offering will be conducted on the basis of the Prospectus for KRUK’s Seventh Bond Programme, approved by the Polish Financial Supervision Authority on August 24th 2020. On its basis, KRUK may issue bonds for one year from the approval date. The nominal value of the entire programme is PLN 700m. The Final Terms and Conditions of Series AK2 bonds have been published on the Company’s website at www.kruksa.pl in the Bonds section as well as on the website of Dom Maklerski BDM S.A. at www.bdm.pl.

The only legally binding documents containing information on the Issuer and the Public Offering of Series AK2 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 AK2 Bonds published on January 29th 2021, available on the Issuer’s websitehttps://go.kruk.eu/OWE_AK2 and additionally, for information purposes, on the website of the Investment Firm at www.bdm.pl. Subscription orders for Series AK2 Bonds will be accepted by the Investment Firm, i.e. Dom Maklerski BDM S.A., and members of the distribution consortium.

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