Menu
NEWS

BEST launches a public bond issue valued at PLN 50 million

Starting on 12 April, you can subscribe to the 4-year L3 series bonds from BEST. The bonds will be allotted based on the order of subscriptions; moreover, the sooner an investor subscribes then the lower the bond issue price they pay. This is the last issue of bonds conducted by the company under its public programme valued at PLN 300 million, launched in March 2014. In the previous issue, the pool available was reached as early as on the first day, and the average subscription reduction rate was 64%.

 

The offering of 4-year BEST bonds with a total value of PLN 50 million, addressed to retail investors, will be launched on Tuesday, 12 April. The company will offer bonds with a variable interest rate equal to WIBOR 3M increased by a margin of 3.5%. The subscription will be conducted by the brokerage houses of mBank and of PKO Bank Polski. Investors can choose from the total of 49 facilities located across the country. Subscriptions can be also placed online and by phone.

 

‘Our previous issue addressed to individual investors was very successful – there were so many investors willing to subscribe that the subscriptions exceeded the available bond pool as early as on the first day, and, anyway, we had to make a reduction of almost 64%. This is a clear sign for us that investors are interested in our bonds, and that is why we are launching another issue of bonds. We hope that this time investors will again consider our bonds to be a good investment’, said Krzysztof Borusowski, President of BEST.

 

The value of the issue conducted in February this year was PLN 40 million, and as early as on the first day of subscription the total number of bonds that the investors were ready to purchase exceeded the number of bonds available. The subscription period was shortened to 2 days, and over 1,000 investors were willing to purchase the bonds, valued at PLN 112 million. As a result, the subscription ended with a high reduction. After the issue of bonds in February, the company conducted an issue of shares in March, valued at PLN 36.5 million. This means that the net debt to equity ratio, which was 1.42 as at the end of October and 1.26 as at the end of December, was further reduced.

 

The purposes of the current issue remain unchanged – the funds obtained will be used for the implementation of the company’s strategy consisting in gradually extending the scale of its operations, e.g. by way of investing in debt portfolios both on the primary market and the secondary market. BEST, for which the year 2015 already ended with an increase of 82% in investments in debt portfolios, is planning to continue to dynamically increase the expenditure incurred for this purpose. The results for 2015, which were published on 21 March, prove that BEST makes good use of the funds obtained – the company's operating revenues increased by 30% and the net profit by 39%. Consequently, the net profit reached the record level of PLN 82.2 million.

 

According to the final issue terms for the L3 series bonds, published today, BEST will offer retail investors 500,000 bonds with a nominal value of PLN 100 each. Consequently, the total nominal value of the bonds offered amounts to PLN 50 million. The L3 series bonds are 4-year bonds, and interest will be paid to investors every three months. The company expects the bonds to debut on Catalyst on 23 May 2016.

 

BEST has once again applied a mechanism promoting prompt subscription for debt securities. The issue price will include a discount in respect of the nominal value, the value of the discount depending on the day of subscription. The sooner an investor subscribes, the lower the price they pay. Simultaneously, the interest is accrued on the bonds as of 26 April 2016, i.e. as of the allotment date, which eliminates the consequences of the so-called non-interest period, i.e. the period between the subscription and the issue date.

 

 

Date

Issue price in PLN

12 April 2016

99.80

13 April 2016

99.82

14 April 2016

99.83

15 April 2016

99.84

16 April 2016

99.86

18 April 2016

99.87

18 April 2016

99.89

19 April 2016

99.90

20 April 2016

99.92

21 April 2016

99.93

22 April 2016

99.94

 

 

Subscriptions will be accepted from 12 to 22 April, and the date of subscription is of importance not only for the issue price to be paid by investors, but also for the allotment of the bonds. This will be of material significance when the investors make subscriptions for a number of bonds exceeding those offered by the company. The key date here will be the day on which the number of the bonds subscribed for exceeds the offered pool (Oversubscription Day). Investors who subscribe before this date will be allotted the full pool of bonds for which they have subscribed. In contrast, the subscriptions placed after the Oversubscription Day and on the next working day will be proportionately reduced. If this is the case, the subscription period may be shortened, which will be communicated by the Company in a relevant current report.

 

The subscriptions will be accepted in 49 distribution points of the brokerage houses of mBank and of PKO Bank Polski. The subscriptions can be also placed by phone and online. In order to participate in the offering it is enough to hold an investment account with any brokerage house. To receive more information about subscriptions and the list of customer service points of the brokerage houses of mBank and of PKO Bank Polski, visit www.mdm.pl and www.dm.pkobp.pl respectively, as well as www.best.com.pl.

 

 

Schedule for the public offering of BEST'S L3 series bonds:

 

 

Start day for accepting subscriptions (“Subscription Start Date”):

12 April 2016

Subscription End Date:

22 April 2016

Allotment date:

26 April 2016

Anticipated Issue Date:

10 May 2016

Anticipated date for public announcement of the Offering results:

by 26 April 2016

Anticipated date of the Bonds being admitted to trading:

23 May 2016

 

 

The public offering of L3 series bonds is the seventh issue conducted by BEST under the public bond issue programme, valued at up to PLN 300 million. As part of this programme, the Company has so far conducted issues with a total nominal value of PLN 250 million addressed to retail and institutional investors. All the bonds have been sold and are listed on the Catalyst market.

 

 

***

BEST: Company Overview

 

BEST S.A. is a company listed on the Warsaw Stock Exchange since 1997, specialising in trading in and managing of non-performing debt. The BEST Group actively invests in debt portfolios (especially banking ones) with the use of securitisation funds, and also provides debt collection services for third parties: banks, telecommunication operators, power companies, and other mass service providers.

 

BEST is also the sole shareholder of BEST TFI, which manages investment funds with total assets of PLN 984 million (as of 30 December 2015). The combination of expertise in the field of debt collection with that in the establishment and management of investment funds helped the entity to concentrate all the elements of the business model within one capital group.

 

The total nominal value of own debt and the debt of other entities managed by BEST is over PLN 10.6 billion (as of 30 December 2015). In 2015, the BEST Group generated a net profit of PLN 82.2 million with operating revenues of PLN 140.1 million.

 

 

***

This press release is for promotional purposes only. The only legal sources of information on the public offering of BEST S.A. bonds are the Base Prospectus, which was approved by the Polish Financial Supervision Authority (KNF) on 9 June 2015, the addenda and communication updates to the Base Prospectus, and the Final Terms of the Bond Issue. The Base Prospectus, addenda and communication updates to the Base Prospectus and the Final Terms have been published and are available electronically on the company's website (www.best.com.pl). The bonds will not constitute a bank deposit nor be covered by the deposit guarantee scheme.

 

 

 

More information:

Mariusz Ilnicki

+48 668 48 36 73

mariusz.ilnicki@best.com.pl

BACK