Kruk S.A. — Capital/Financing Update 2016

Sep 19, 2016

Current Report No. 88/2016

Date: September 19th 2016

Subject: Launch of the Fourth Public Bond Issue Programme

Legal basis: Art. 17.1 of MAR - Inside information

Text of the report:

The Management Board of KRUK S.A. (the "Company") announces that onSeptember 19th 2016 it passed a resolution to launch the Fourth PublicBond Issue Programme (the "Programme") with a total nominal value of upto PLN 500m, under which the Company may issue public bonds ("Bonds") inPolish zloty or euro. The Bonds will be in book-entry form.

In connection with the Programme, the Company has prepared a base issueprospectus (the "Prospectus"). The Company will file the Prospectus andan application for its approval with the Polish Financial SupervisionAuthority. Individual series of Bonds under the Programme will be issuedduring the 12 months from the Prospectus approval by the PolishFinancial Supervision Authority. Individual Bond issues may differ withrespect to their final issue terms and conditions, in particular withrespect to the rules of defining interest and the interest rate.Detailed issue terms and conditions of each Bond series will be definedin the Prospectus and in the final issue terms and conditions ofindividual Bond issues.

Proceeds from the Programme will be used for to finance the operatingand investment activities of the KRUK Group companies, refinance theCompany's debt, or finance the Group's growth through acquisitions.