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BEST’s new bond issue worth PLN 60 million

 

Beginning 2 March this year, investors will be able to subscribe for BEST’s series R3 4.5-year bonds with a total nominal value of up to PLN 60 million. They are offered under the same conditions as the series R2 bonds worth PLN 30 million issued in January, where the subscription limit was reached already by the first day. Subscriptions will be accepted in nearly 250 branches of the brokerage firms Dom Maklerski PKO Banku Polskiego, Biuro Maklerskie Alior Banku and Dom Maklerski Banku Handlowego.

 

“As a result of the very high demand for BEST’s bonds offered in January, we had to end the subscriptions early and reduce the volume of all subscriptions by an average of almost 39%. Among other things, this is one effect of a very successful 2016 for BEST Group, with record repayments under debt portfolios. It was also a record-breaking period in terms of investments in new portfolios. We continue to build the image of a reliable company as perceived by investors, and this pays off. We are starting the new bonds subscription as announced, offering those investors who did not manage to subscribe for BEST’s series R2 bonds an opportunity to turn a profit with us,” says Krzysztof Borusowski, President of the Management Board of BEST. “To meet the expectations of investors, especially individual investors, we have created a distribution consortium to make it easier for anyone interested to participate in our offer. As before, subscriptions for BEST’s series R3 bonds will be accepted by the brokerage firms Dom Maklerski PKO Banku Polskiego, and additionally by Biuro Maklerskie Alior Banku and Dom Maklerski Banku Handlowego. In total, they operate nearly 250 branches across the country,” he adds.

The public offering of series R3 bonds involves up to 600,000 bonds with a nominal value of PLN 100 each, totalling up to PLN 60 million. The 4.5-year bonds (to be redeemed in September 2021) carry a variable interest rate, amounting to WIBOR 3M plus a 3.3% margin, yielding more than 5% per annum in the first interest period. Series R3 bonds are offered under the same conditions as series R2 bonds worth PLN 30 million issued in January, when the investors already subscribed for more bonds than the Company offered by the first day.

Subscriptions for series R3 bonds will be accepted from 2 to 16 March of this year. If investors subscribe for more bonds than the Company is offering, the subscription period could be shortened. In the event of an Oversubscription Date occurring, i.e. the day when the total number of bonds for which investors have subscribed since the beginning of subscription exceeds the number of bonds offered, subscriptions will be accepted only until the end of the following working day. Subscriptions made on the Oversubscription Date and on the following day will be reduced proportionately. In such a case, the full number of subscribed bonds will be allotted only to investors who subscribed before the Oversubscription Date.

 

Schedule of the public offering of BEST’s series R3 bonds:

 

Subscription opening date:

2 March 2017

Subscription closing date:

16 March 2017

Allotment date:

17 March 2017

Expected date of issue:

29 March 2017

Expected date of admission to trading:

5 April 2017

 

Interest will be calculated on series R3 bonds from the first subscription day. Therefore, the issue price will depend on the date on which the subscription is made. On the first day the price will be equal to the bond nominal value, i.e. PLN 100, while on the following days it will be increased by the equivalent of the interest accrued.

 

Day when subscription is made

Issue price
of R3 series bonds (PLN)

2 March 2017

100.00

3 March 2017

100.01

4 March 2017

100.03

5 March 2017

100.04

6 March 2017

100.06

7 March 2017

100.07

8 March 2017

100.08

9 March 2017

100.10

10 March 2017

100.11

11 March 2017

100.12

12 March 2017

100.14

13 March 2017

100.15

14 March 2017

100.17

15 March 2017

100.18

16 March 2017

100.19

 

Series R3 bonds are issued as part of the second programme for the public issue of BEST’s bonds with a total value of up to PLN 200 million. Under the programme, the Company has already raised a total of PLN 80 million.

 

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General information about BEST

BEST S.A. specializes 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 and power companies as well as other providers of general services.

BEST is also the sole shareholder in BEST TFI, which manages securitisation funds with a total net asset value of approx. PLN 680 million (as at 30 September 2016). 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 elements of the business model within one capital group.

The total nominal value of own debts and third party debts managed by BEST exceeds PLN 11 billion (as at 30 September 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 at:

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 public offering of bonds conducted by BEST S.A. (the Issuer) under the issue programme established by the Issuer include: the base issue prospectus approved by the Polish Financial Supervision Authority on 3 October 2016, the addenda and updates to the prospectus, and the final terms of bond issue for a particular series of bonds, published on the Issuer's website (www.best.com.pl) and additionally, for information purposes, on the website of Dom Maklerski PKO Banku Polskiego (www.dm.pkobp.pl).

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