Kruk S.A. — Capital/Financing Update 2016

Oct 14, 2016

Current Report No. 95/2016

Date of the report: October 14th 2016

Subject: Resolutions of the KRUK S.A. Management Board to issueunsecured bonds

Legal basis: Art. 17.1 of MAR - Inside information

Text of the report:

The Management Board of KRUK S.A. ("Company", "Issuer") announces thaton October 14th 2016 it passed a resolution to issue unsecured SeriesAA4 bonds (Resolution 1) and a resolution to issue unsecured Series AA5bonds (Resolution 2) ("Bonds").

The Company intends to use the issue proceeds to finance debt purchasesby the KRUK Group ("Group"), refinance the Group's debt, or finance theGroup's growth through acquisitions.

Under Resolution 1, the Company has resolved to issue up to 75,000unsecured Series AA4 bearer bonds of the Company with a nominal value ofPLN 1,000 per bond, maturing 72 months after the allotment date. UnderResolution 2, the Company has resolved to issue up to 75,000 unsecuredSeries AA5 bearer bonds of the Company with a nominal value of PLN 1,000per bond, maturing 36 months after the allotment date.

The Bonds will be offered at the issue price equal to their nominalvalue. The Bonds will bear interest, with the rate of interestdetermined by the Company Management Board based on the separateresolutions. Interest on the Bonds will be payable every three months.The bonds will be issued in accordance with, and will be governed by,Polish law. The Bonds will be offered in a private placement.

They will be issued by December 31st 2016, in book-entry form. TheIssuer intends to convert the Bonds to book-entry form and then tointroduce them to trading in the alternative trading system on theCatalyst market.