KRUK Spólka Akcyjna : begins work on its 7th Public Bonds Programme

The Management Board of KRUK S.A. has passed a resolution to establish the 7th Bonds Programme with a total nominal value of up to PLN 700m, whereby the Company will be able to issue public bonds ('Bonds') under a prospectus for a year from the date of its approval by the Polish Financial Supervision Authority. The final terms of each Bond issue, particularly the rules for determining the interest rate and interest amount, may vary. The key terms of each Bond series will be provided in the Prospectus and in the final terms of the given series. KRUK still has its 6th Bonds Programme open, under which bonds may be issued untilJuly 4th 2020.

'The Management Board has just passed a relevant resolution and will soon file KRUK's seventh bond programme prospectus along with an application for its approval with the Polish Financial Supervision Authority. The programme is again designed mainly for retail investors but, just like previous programmes, it may also include tranches for institutional investors. Therefore, the maximum total value of the new programme is the same as for the current 6th Bonds Programme, amounting to PLN 700m. Bonds are an important source of finance for us and a manifestation of our strategy to diversify funding sources. We have issued public bonds under prospectuses since 2013, with their value totalling PLN 478m. The proceeds have been used to fund the KRUK Group's investing and operating activities. Although we have recently scaled back our debt buying activities due to the coronavirus pandemic, our goal is to gear up to resume investing in the coming months. Today's resolution approving the bonds programme will enable us to file a prospectus with the PFSA and to issue public bonds over the 12 months from the date of its approval by the regulator. Given the hardships and inconvenience imposed by the current situation, including the need to work remotely, we have commenced work on the prospectus early,' explains Piotr Krupa, President of the KRUK Management Board.

KRUK is among the largest corporate bond issuers in Poland, with PLN 2.4bn worth of unsecured bonds issued and PLN 1.1bn worth of bonds repurchased to date.