Current Report No. 6/2020: Management Board’s resolution to abandon issue of bonds under Sixth Public Bond Issue Programme

Further to Current Report No. 4/2020 of March 9th 2020 on the issue of Series AJ2 Bonds (the Bonds) and the final terms and conditions of the issue of the Bonds, the Management Board of KRUK S.A. (the Company) announces that today it has adopted a resolution to abandon the offering of the Bonds on the basis of the Base Prospectus of the Sixth Bond Issue Programme (the Programme). The decision was made in connection with the coronavirus epidemic spreading across Poland and in keeping with the principles of social responsibility as, for instance, placing subscription orders would require appearing in person at Brokerage Houses’ Customer Service Points. The Company will consider the offering of bonds under the Programme once the pandemic has subsided.

The Company would also like to point out that the KRUK Group is continuing its operations, has a relatively low debt (net debt to equity of 1.3x as at December 31st 2019), and its liquidity position is stable (as at December 31st 2019, the amount of cash and cash equivalents was PLN 150m and the amount of available and undrawn credit facilities was PLN 556m). 
 
As at the date of this report, the Company’s Management Board is unable to precisely determine the extent to which the spread of the coronavirus and the related problems will affect KRUK’s financial performance and prospects in a longer term. The Management Board takes into account different scenarios and intends to manage KRUK’s operations in a way which will minimise any adverse effect on KRUK’s assets and financial performance. At the same time the Management Board aims to prepare the Group for full-scale investment activity when the pandemic threat ends.