The KRUK Group, a Polish leader of the Central European debt management market, has successfully completed the issue of a new series of euro-denominated bonds. KRUK has allotted Series AE1 five-year bonds with a total nominal value of EUR 20m and fixed-rate interest of 3.59%.
“I would like to thank investors for their participation in the just-completed bond issue. We have been issuing złoty-denominated bonds for many years now, and this was our first issue of five-year unsecured bonds in the euro. We very much appreciate investors’ interest shown in the bookbuilding process − the demand more than twice exceeded the number of bonds offered. The terms and conditions of the bonds, including the fixed interest rate of 3.59%, and the investors’ considerable interest pave the way for new potential issues. We will expand credit and bonds financing in euro in the future” said Michał Zasępa, CFO of KRUK S.A.
In 2016, KRUK’s expenditure on new debt portfolios totalled PLN 1.3bn, including PLN 857m used to purchase debts abroad − in Italy, Spain, Germany, Slovakia and other countries. In Q1 2017 alone, investments amounted to PLN 214m, of which 90% accounted for foreign portfolios.
‘The EUR 20m issue supports our potential for geographical expansion in Western Europe. We want to be ready to take up different investment opportunities, as financial institutions across Europe have a high propensity to sell their debt portfolios,’ Michał Zasępa said.
This is KRUK’s second issue of euro-denominated bonds. The first one took place last year − KRUK issued three-year bonds with a nominal value of EUR 20m and fixed interest of 3% then. Following completion of the issue, the Company introduced the bonds to trading on the Catalyst market, something it plans to do with Series AE1 bonds as well, in accordance with the Terms and Conditions.