Current Report No. 94/2016: Closing of the public offering of Series AB4 Bonds and cost summary of the Third Public Bond Issue P

Further to Current Report No. 90/2016 of September 30th 2016 on the allocation of bonds under the Third Public Bond Issue Programme (the “Programme”), the Management Board of KRUK S.A. (the “Company”, “Issuer”) announces that the offering of Series AB4 unsecured ordinary bearer coupon bonds (the “Bonds”), carried out as part of the Programme covered by the Base Prospectus approved by the Polish Financial Supervision Authority on February 4th 2016 (the “Prospectus”), has been closed. The period of subscription for the  350,000 Bonds was September 23rd 2016 (inclusive) − September 29th 2016 (inclusive). The Bonds were allotted on September 30th 2016. The issue was not divided into tranches. In the subscription period, 687 Investors placed subscription orders for 906 526 Bonds. As a result, the Company allotted Investors 350,000 Bonds, with the reduction rate of 61%. The Bonds were acquired at the issue price of PLN 100 per bond. No underwriter acquired the Bonds. The Company did not conclude any underwriting agreement in connection with the Bond offering. The issue value, understood as the product of the number of the Bonds covered by the offering and the issue price, was PLN 35,000,000. 
At the same time in connection with the closing of the Programme on September 30th 2016, and further to Current Report No. 94/2015 of December 30th 2015, the Issuer discloses information on the costs incurred under the public bond issue programme for retail investors. 
The total costs of the Programme, as part of which four bond issues were run comprising 650,000 Series AB1 bonds, 1,350,000 Series AB2 bonds, 650,000 Series AB3 bonds and 350,000 Series AB4 bonds, amounted to PLN 5,109,000, and included: – cost of preparing the prospectus, including cost of advisory services – PLN 82,000, – cost of preparing and carrying out the bond offerings – PLN 4,860,000, – offering promotion costs – PLN 167,000. The average cost of the offerings per bond with a nominal value of PLN 100 was PLN 1.70. No costs were incurred on underwriting fees since the Issuer did not conclude any underwriting agreements in connection with the bond offerings. The costs related to preparation of the prospectus, final terms and conditions of the bonds and brokerage commissions, totalling PLN 4,942,000, were recognised as prepayments. These costs are charged to the Issuer’s profit or loss from the issue date to the maturity date. Other costs, including the costs of bond offering promotion, are charged to the Company’s operating expenses.
Detailed legal basis: Par. 33.1 of the Regulation of the Minister of Finance of February 19th 2009 on current and periodic information […]
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