Kruk S.A. — Capital/Financing Update 2016

Oct 13, 2016

Current Report No. 94/2016

Date of the report: October 12th 2016

Subject: Closing of the public offering of Series AB4 Bonds and costsummary of the Third Public Bond Issue Programme

Legal basis: Art. 56.1.2 of the Public Offering Act - Current andperiodic information

Text of the report:

Further to Current Report No. 90/2016 of September 30th 2016 on theallocation 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 ordinarybearer coupon bonds (the "Bonds"), carried out as part of the Programmecovered by the Base Prospectus approved by the Polish FinancialSupervision Authority on February 4th 2016 (the "Prospectus"), has beenclosed. The period of subscription for the 350,000 Bonds was September23rd 2016 (inclusive) − September 29th 2016 (inclusive). The Bonds wereallotted on September 30th 2016. The issue was not divided intotranches. In the subscription period, 687 Investors placed subscriptionorders for 906 526 Bonds. As a result, the Company allotted Investors350,000 Bonds, with the reduction rate of 61%. The Bonds were acquiredat the issue price of PLN 100 per bond. No underwriter acquired theBonds. The Company did not conclude any underwriting agreement inconnection with the Bond offering. The issue value, understood as theproduct of the number of the Bonds covered by the offering and the issueprice, was PLN 35,000,000.

At the same time in connection with the closing of the Programme onSeptember 30th 2016, and further to Current Report No. 94/2015 ofDecember 30th 2015, the Issuer discloses information on the costsincurred under the public bond issue programme for retail investors.

The total costs of the Programme, as part of which four bond issues wererun 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 PLN5,109,000, and included: - cost of preparing the prospectus, includingcost of advisory services - PLN 82,000, - cost of preparing and carryingout the bond offerings - PLN 4,860,000, - offering promotion costs - PLN167,000. The average cost of the offerings per bond with a nominal valueof PLN 100 was PLN 1.70. No costs were incurred on underwriting feessince the Issuer did not conclude any underwriting agreements inconnection with the bond offerings. The costs related to preparation ofthe prospectus, final terms and conditions of the bonds and brokeragecommissions, totalling PLN 4,942,000, were recognised as prepayments.These costs are charged to the Issuer's profit or loss from the issuedate to the maturity date. Other costs, including the costs of bondoffering promotion, are charged to the Company's operating expenses.

Detailed legal basis: Par. 33.1 of the Regulation of the Minister ofFinance of February 19th 2009 on current and periodic information [...]