KRUK to issue two series of bonds with a total value of nearly PLN 400m

KRUK has announced two new bond issues intended for retail and institutional investors. After the PLN 70m issue of AK3 bonds closed on June 10th, wich met with strong interest among investors (a 28% order reduction), KRUK is returning to the primary market with an offer to subscribe for another PLN 65m worth of bonds. On June 23rd 2021, the Company published the Final Terms and Conditions of the Series AK4 bonds. The bonds will be issued in a public offering on similar terms as the AK3 bonds, including the fixed interest rate of 4% per annum. The offering will be carried out by a distribution consortium comprising: Dom Maklerski BDM, Noble Securities, Michael / Ström Dom Maklerski, Ipopema Securities and Powszechna Kasa Oszczędności Bank Polski S.A. – Brokerage Office.The subscription period is June 24th – July 7th 2021.

In addtion, after two years KRUK is returning to issuing bonds to institutional investors. On June 17th 2021, the Company’s Management Board passed a resolution to issue bonds with a total nominal value of up to PLN 330m under the First Bond Issue Programme without a Prospectus announced in July last year.

“Two weeks ago investors subscribed for nearly PLN 100m worth of KRUK bonds, but based on the terms and condtiions in force at the time we could allocate only PLN 70m worth of bonds. Given the significant interest from KRUK’s current investors and the possibility of attracting new retail investors through our cooperation with PKO BP, we decided to carry out another issue of up to PLN 65m. We are glad that after three years of non-participation in KRUK’s issues, PKO BP Bank – Brokerage House is joining the distribution consortium for the AK4 series issue. Let me remind you that the previous issue was the first time Pekao Brokerage House took part in our bond issues. The offering of KRUK bonds by Poland’s two largest banks marks another historic moment. This confirms that KRUK enjoys a good reputation among investors and the distribution consortium which offers its bonds. I would like to thank for that trust, which is based on over 20 years of KRUK’s history and results,” commented Piotr Krupa, CEO of KRUK S.A. “We are also returning to issuing debt securities to institutional investors and expect to raise PLN 330m from this source. This is our first issue for professional investors in two years and the first one under the bond issue programme without a prospectus, whose total maximum nominal value is PLN 700m. We are now in a good time for debt portfolio purchases, such as the one we made in Italy recently. We plan to use the funds raised from retail and institutional investors for KRUK’s general needs, including debt purchases,” said Piotr Krupa.

The offering of series AK4 bonds 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, of which PLN 115m has already been issued under Series AK1, AK2 and AK3. The Final Terms and Conditions of Series AK4 bonds are available 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 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.