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BEST Group maintains high pace of investments and repayments

The nominal value of claims purchased by BEST Group since the beginning of this year has already exceeded PLN 1 billion, with expenditures on the claims amounting to more than PLN 138 million. The invested amount is more than 60% higher than during the whole of 2015.

Total repayments for the claims portfolio for the first three quarters of this year amount to more than PLN 169 million, of which nearly PLN 133 are attributable to BEST Group, up by 28% and 35% respectively compared to the same period in 2015.

 

In Q3 of this year, the funds managed by BEST invested over PLN 54 million in claims portfolios with a total nominal value of nearly PLN 518 million. BEST Group’s cumulative investments over the first three quarters of this year amounted to more than PLN 138 million, up by 69% year-on-year, and the total nominal value of the acquired portfolios reached PLN 1.04 billion, up by 71% over the same period in 2015.

"During the first three quarters of this year, we have invested over 60% more in new portfolios compared to the whole of last year, when we invested approx. PLN 85 million in claims on the primary market. We are going to maintain the pace in Q4, and given the constant high level of non-performing bank debts, our plans to invest a total of approx. PLN 250 million seem very feasible. It would mean an increase of more than ten per cent of BEST Group’s share in the claims market," says Krzysztof Borusowski, President of BEST’s Management Board.

BEST Group also maintains high dynamics for repayments under its claims portfolios. In Q3 of this year, total repayments under portfolios held by the securitisation funds managed by BEST amounted to over PLN 57 million, of which more than PLN 45 million were attributable to BEST Group, up by 36% compared to Q3 2015. Accumulated repayments for the first nine months of this year exceeded PLN 169 million, of which repayments due to BEST Group nearly reached PLN 133 million, up by 35% year-on-year.

"We are very happy with these record-breaking repayments under claims portfolios, comprising internal factors such as investments in a new IT system to support the debt collection process, as well as external factors such as a low employment rate. We want to use the positive market environment and continue BEST Group’s dynamic growth. This is why we have launched a second bonds issue programme, allowing us to procure funds for new investments. Although one of the goals of the bonds issue is to refinance debt, we do not currently have such needs. We will use all of the funds to purchase new claims portfolios," says Krzysztof Borusowski.

As of 10 October (Monday), investors can subscribe for BEST’s series R1 4.5-year bonds with a total nominal value of PLN 50 million. These are variable interest rate bonds, with an interest rate amounting to WIBOR 3M, plus a 3.3% margin, which amounts to approx. 5% per annum in the first interest period. The issue is aimed at retail investors, who can subscribe in more than 30 branches of the Brokerage House of PKO Bank Polski as well as online and by phone. According to the offer schedule, subscriptions are accepted until 19 October of this year. However, if investors subscribe for more bonds than offered by the Company, the subscription period could be shortened.

 

Claims portfolios acquired by BEST Group entities and repayments under the acquired claims portfolios

(PLN million)

Q3 2016

Q3 2015

Movement YOY

Q1-Q3 2016

Q1-Q3 2015

Movement YOY

Nominal value of claims portfolios acquired

517.9

175.1

196%

1,038.0

606.4

71%

Acquisition cost of claims portfolios

54.2

17.1

217%

138.6

81.8

69%

Total value of repayments under claims portfolios

57.4

44.5

29%

169.1

132.1

28%

Repayments under claims portfolios due to BEST Group 1

45.4

33.4

36%

132.7

98.1

35%

 

1 100% BEST I NSFIZ, 100% BEST II NSFIZ, 50% BEST III NSFIZ

 

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General information about BEST

BEST S.A. specialises in trading in and managing of non-performing debts, and has been listed on the Warsaw Stock Exchange since 1997. BEST Group actively invests in debt portfolios (especially in bank debts) using securitisation funds, and provides debt collection services to third parties: banks, telecommunication operators and power companies as well as other providers of general services.

BEST is also the sole shareholder of BEST TFI, which manages securitisation funds with total assets valued at PLN 640 million (as of 30 June 2016). Combining competences in debt collection with creating and managing investment funds has allowed us to concentrate all elements of our business model in a single capital group.

The total nominal value of own claims and third party claims managed by BEST is approx. PLN 11 billion (as of 30 June 2016).

In 2015, BEST Group generated a net profit of over PLN 82 million, while operating revenues exceeded PLN 140 million.

 

For more information, visit www.best.com.pl or contact us:

Krzysztof Woch

NBS Communications

phone 22 826 74 18 / mobile 516 173 691

e-mail: kwoch@nbs.com.pl

Maciej Szczepaniak

NBS Communications

phone 22 826 74 18 / mobile 514 985 845

e-mail: mszczepaniak@nbs.com.pl

 

You can also follow BEST Group on Twitter: https://twitter.com/BEST_Grupa

 

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This material is for promotional purposes only. The only legally binding sources of information on the issue of bonds by BEST S.A. (Issuer) as part of the issue programme established by the Issuer include: the Base Prospectus, which was approved by the Polish Financial Supervision Authority (KNF) on 3 October 2016, addenda and updates to the Base Prospectus, and the Final Terms of Bonds Issue. The Base Prospectus, addenda and updates to the Base Prospectus and the Final Terms have been published and are available on the Issuer's website (www.best.com.pl) and also, for information purposes, on the website of the Brokerage House of PKO Bank Polski (www.dm.pkobp.pl). 

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