Kruk S.A. — Capital/Financing Update 2018

Nov 7, 2018

Current Report No. 39/2018

Date: November 7th 2018

Subject: Resolution of the Management Board on issue of bonds under theFifth Public Bond Issue Programme

Legal basis: Art. 17.1 of MAR - Inside information

Text of the report:

Further to Current Report No. 54/2017 of December 7th 2016 on the launchFifth Public Bond Issue Programme (the "Programme"), the ManagementBoard of KRUK S.A. (the "Issuer" or "Company") announces that onNovember 7th 2018 it passed a resolution on the issue of Series AG1bonds ("Bonds") and determination of their final terms and conditions.The Bonds are covered by the base Prospectus approved by the PolishFinancial Supervision Authority on April 16th 2018, available from theCompany's website: www.kruksa.pl.

The issue will comprise up to 300,000 unsecured bearer Bonds inbook-entry form, which will be offered in a public offering. The Issuerwill seek to introduce the Bonds to trading on the regulated Catalystmarket operated by the Warsaw Stock Exchange.

In compliance with Art. 54.3 of the Public Offering Act, the Companyannounces that the Bonds will be offered at the issue price equal totheir nominal value of PLN 100 per bond, and that their total nominalvalue will not exceed PLN 30m. The Bonds will bear interest at avariable rate equal to 3M WIBOR (the rate charged for three-monthborrowings denominated in PLN on the Polish interbank market) plus afixed margin of 3.50 percentage points.

The Company will redeem the Bonds on 27th November 2023, with theprovision that the Issuer will have the right to early redeem all or apart of the Bonds at its own option. The Company also reports thatpursuant to Art. 24.1 of the Public Offering Act information on thedetailed terms and conditions of the Bonds will be published on theIssuer's website www.kruksa.pl.