On February 18th 2021, KRUK allotted 200,000 Series AK2 ordinary bearer bonds with a total nominal value of PLN 20m. Subscriptions opened on February 3rd and closed on February 16th 2021. It was the Company’s second and this year’s first prospectus-based issue carried out under its 7th Bond Programme. Investor interest in the bonds far exceeded the size of the issue, with over 1,000 investors placing subscription orders for KRUK’s 5-year bonds bearing a fixed interest rate of 4.2% per annum. The total value of subscriptions was PLN 112.8m and the reduction rate reached 82%.
‘In the bond issue we have just closed, demand far exceeded our expectations. The offer attracted even greater interest than last autumn’s issue despite a reduction in the coupon rate from 4.8% to 4.2%. The retail investor turnout was one of the highest in the seven-year history of KRUK’s bond issues conducted under public prospectuses. The total value of subscriptions exceeded the nominal value of Series AK2 bonds we intended to place by PLN 92.8m. The high level of demand is a testament to strong confidence investors place in KRUK and our position getting stronger, also demonstrating the great potential of the capital market in Poland,’ noted Piotr Krupa, President of the KRUK Management Board. ‘We have good access to finance, which – combined with our internal funds and the Group having the lowest leveraged ratio of any international competitor – makes us well prepared for new investments, which will be larger than last year. Today KRUK is one of the largest Polish companies operating in Europe. The ability to raise debt finance from bond market investors is an important aspect of KRUK’s funding source diversification strategy. This is why I am very pleased that our offer has been well received by investors again. We intend to remain an active issuer on the domestic market,’ added Mr Krupa.