Kruk S.A. — Capital/Financing Update 2016

Mar 7, 2016

Current Report No. 18/2016

Date of the report: March 7th 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. 15/2016 of February 25th 2016 on the issueof bonds, the Management Board of KRUK S.A. (the Company, the Issuer)announces that, on March 7th 2016, it became aware of successfulplacement by the Dealer, acting on behalf of the Issuer, of the SeriesAA2 unsecured coupon-bearing ordinary bearer bonds (the Bonds) and theirentry in the Depositary Register.

Based on the information, the Company's Management Board concluded thatthe Bonds issue was successful and that 150,000 Bonds had been allotted,each with a nominal value per bond equal to the issue price of PLN 1thousand (with a total value amounting to PLN 150m).

The interest rate on the Bonds was set at 3M WIBOR plus 3.25 pp per year(the Margin). Furthermore, if the Debt Ratio, referred to in the Termsand Conditions of the Series AA2 Bonds defined as at March 2nd 2016 inconnection with the private placement of the Series AA2 Bonds by KRUKS.A, exceeds 2.20, then the Margin will increase 0.50 pp per year. Theincreased Margin will be effective as from the Interest Periodsubsequent to the Interest Period in which the KRUK Group released itsConsolidated Financial Statements based on which the Debt Ratio inexcess of 2.20 was identified. Reduction of the Margin, previouslyincreased by 0.50 pp per year, back to its original level will beeffected if the Debt Ratio is lower than or equal to 2.20. The reducedMargin will be effective as from the Interest Period subsequent to theInterest Period in which the KRUK Group released its ConsolidatedFinancial Statements based on which the Debt Ratio equal to or lowerthan 2.20 was identified.