Kruk S.A. — Capital/Financing Update 2016

Jun 10, 2016

Current Report No. 54/2016

Date of the report: June 9th 2016

Subject: Allotment of unsecured coupon-bearing ordinary bearer bonds ofKRUK S.A.

Legal basis: Art. 56.5 of the Act on Public Offering - Information update

Text of the report:

Further to Current Report No. 47/2016 of May 25th 2016 on the issue ofSeries AD1 unsecured coupon-bearing ordinary bearer bonds (the ‘Bonds')by KRUK S.A., the Management Board of KRUK S.A. (the ‘Company')announces that on June 9th 2016 it adopted a resolution (the‘Resolution') declaring successful issue of the Bonds.

In the Resolution, the Company's Management Board concluded that theBonds issue was successful and that 50,000 Bonds had been allotted, eachwith a nominal value per bond equal to the issue price of PLN 1 thousand(with a total value amounting to PLN 50m).

The interest rate on the Bonds was set at 3M WIBOR plus 2.50 pp per year(the Margin). Furthermore, if the Debt Ratio, referred to in theInformation Document containing the Terms and Conditions of the SeriesAD1 Bonds, prepared as at May 25th 2016 in connection with the privateplacement of the Series AD1 Bonds by KRUK S.A., exceeds 2.20, then theMargin will increase 0.50 pp per year. The increased Margin will beeffective as from the Interest Period subsequent to the Interest Periodin which the KRUK Group released its Consolidated Financial Statementsbased on which the Debt Ratio in excess of 2.20 was identified.Reduction of the Margin, previously increased by 0.50 pp per year, backto its original level will be effected if the Debt Ratio is lower thanor equal to 2.20. The reduced Margin will be effective as from theInterest Period subsequent to the Interest Period in which the KRUKGroup released its Consolidated Financial Statements based on which theDebt Ratio equal to or lower than 2.20 was identified.