BEST Group: public issue of bonds worth PLN 30 million

On 5 February 2018, subscription for 4-year series T2 bonds of BEST with a total nominal value of PLN 30 million will begin. The interest rate on the bonds amounts to WIBOR 3M, plus a 3.5% margin, which amounts to more than 5.2% per annum in the first interest period. The interest rate on series T2 bonds will be calculated from the first day of subscription. Therefore, the issue price of the bonds will depend on the day when a subscription is made. The bonds will be introduced to trading on the regulated market operated by the GPW as part of Catalyst.

Subscriptions for investors from 5 to 16 February

 

Subscriptions for BEST’s series T2 bonds will be accepted by the brokerage firms Dom Maklerski PKO Banku Polskiego, and by Biuro Maklerskie Alior Banku in more than 150 branches across the country. The nominal value of one bond is PLN 100 and the minimum amount of subscription is 1 bond. The period during which subscriptions are accepted may be shortened if investors oversubscribe for the bonds.

 

The bonds of BEST Group are a stable investment with an attractive interest rate of WIBOR 3M, plus a 3.5% margin, yielding more than 5.2% per annum. We offer our investors a better investment opportunity than bank deposits. Our bondholders appreciate the reliability and credibility of BEST. We have been present on the bonds market since 2010, and this is our 16th issue and third public issue programme. It will allow us to finance the development of our business, mainly subsequent investments in portfolios. In 2017, we invested more than PLN 300 million in them – stressed Krzysztof Borusowski, President of the Management Board of BEST S.A.

 

Time plan for the public offering of BEST’s series T2 bonds:

 

Subscription opening date:

05 February 2018

End of subscription*:

16 February 2018

Allotment date:

19 February 2018

Expected Issue Date:

28 February 2018

Expected date of admission to trading:

07 March 2018

 

*The period during which subscriptions are accepted may be shortened if investors oversubscribe for the bonds.

 

The co-organisers and entities offering BEST’s bonds as part of the current programme are Dom Maklerski PKO Banku Polskiego (which also acts as a global coordinator) and Alior Bank – Biuro Maklerskie.

 

In November 2017, BEST allotted its series T1 bonds with a total nominal value of PLN 55.8 million to 650 investors. The issue of series T1 bonds was conducted as part of the third public issue programme for bonds with a total nominal value of up to PLN 350 million. In 2014-2017, the Company implemented two programmes with a total nominal value of PLN 500 million.

 

In 2017, BEST Group invested a total of over PLN 300 million in claim portfolios with a nominal value of PLN 2.6 billion, which means a 16% increase in investments compared to 2016. Repayments of claims due to BEST Group in the fourth quarter of 2017 amounted to PLN 61.9 million, i.e. 31% more than in the fourth quarter of 2016. The fair value of claim portfolios due to BEST Group at the end of 2017 amounted to nearly PLN 1 billion. In 2017, BEST Group generated PLN 282 million in repayments (including PLN 238.3 million from its claims), up by 32% year on year.

 

After three quarters of 2017, BEST Group generated a net profit of over PLN 46.3 million and more than PLN 120 million of full cash EBITDA, while operating revenues exceeded PLN 154 million.

 

 

BEST Group portfolio at the end of 2017

Investments in claim portfolios exceeded PLN 300 million

 

In 2017, BEST Group invested a total of over PLN 300 million in claim portfolios with a nominal value of PLN 2.6 billion, which means a 16% increase in investments compared to 2016. Repayments of claims due to BEST Group in the fourth quarter of 2017 amounted to PLN 61.9 million, i.e. 31% more than in the fourth quarter of 2016. The fair value of claim portfolios due to BEST Group at the end of 2017 amounted to nearly PLN 1 billion.

 

In 2017, we concluded a number of transactions in Italy, and we would like it to be our second important operating market. We are very pleased with the results generated on these portfolios in recent months. It should be emphasised that our Italian team consists of carefully selected and experienced experts, allowing us to better understand the nature of the local market and make better investment decisions. We make these decision very carefully, based on a detailed effectiveness analysis. We also withdraw from transactions that are not promising if they do not meet our strict standards. At the same time, we have built an important transaction pipelineallowing us to maintain the planned growth rate in that region. In December 2017, BEST Group concluded an agreement for the purchase of a claim portfolio from entities belonging to ICCREA banking group with a total nominal value of EUR 128 million – emphasised Krzysztof Borusowski, President of the Management Board of BEST S.A.

 

In 2017, BEST Group generated PLN 238.3 million in repayments from its claims, up by 32% year on year.

 

On the Polish market, we have demonstrated that we are capable of making effective investments and finding opportunities that ensure an appropriate level of profit, especially as we face increasing prices of portfolios. We are currently focused on further automation and development of debt collection technologies using artificial intelligence. We will invest in interfaces for communicating with all parties involved in the debt collection process and use machine learning technologies. We have completed the first phase of the SIGMA project, and additional tools and system development are intended to increase the efficiency of our debt collection process – added Krzysztof Borusowski.

 

After three quarters of 2017, BEST Group generated a net profit of over PLN 46.3 million and more than PLN 120 million of full cash EBITDA, while operating revenues exceeded PLN 154 million.

 

We are concerned about the situation in the industry, especially unauthorised access to proprietary data, which gives violators competitive advantages over law-abiding companies. Complying with ethics standards and acting in accordance with the law are our priority, and we want this to be an unquestionable standard in the debt collection industry – said Krzysztof Borusowski.

 

 

 

BEST’s series T1 bonds go to over 650 investors

BEST has allotted series T1 bonds with a total nominal value of approx. PLN 55.8 million. They will go to 650 investor portfolios.

 

As part of the current issue, BEST has offered investors 600,000 series T1 bonds with a nominal value of PLN 100 each, with a total nominal value of PLN 60 million. During the subscription period from 16 to 29 November, investors subscribed for 557,763 bonds, which were ultimately allotted by the Company. The T1 series bonds were allotted to the portfolios of over 650 investors.

 

– When establishing the bond issue parameters, we always try to reconcile the expectations of investors who are looking for attractive investment opportunities with the best interest of the Company, which is to obtain financing on optimal terms. The investors acquired almost the entire pool offered, which we consider to be a very good result, given that BEST’s public bond offer coincided with large offers from other issuers – said Krzysztof Borusowski, President of the Management Board of BEST S.A.

 

BEST’s series T1 bonds are debt securities with variable interest rate, amounting to 3M WIBOR plus a 3.4% margin, yielding slightly over 5.1% per annum in the first interest period. The redemption date is in 4 years and 3 quarters (September 2022). The T1 series bonds, like all series offered by the Company under public bond issue programmes, will be introduced to trading on the regulated market operated by GPW as part of Catalyst. The series T1 bonds are expected to be admitted to trading on 21 December this year.

 

The issue of series T1 bonds is the first issue conducted by BEST under the third public issue programme for bonds with a total nominal value of up to PLN 350 million. In 2014-2017, the Company implemented two programmes with a total nominal value of PLN 500 million.

 

The co-organisers and entities offering BEST’s bonds as part of the current programme are Dom Maklerski PKO Banku Polskiego (which also acts as a global coordinator) and Biuro Maklerskie Alior Bank.

 

 

BEST bonds available again in a public offer

Beginning this Thursday, 16 January, investors will be able to subscribe for BEST’s bonds with a total nominal value of PLN 60 million. These are variable interest rate bonds, with interest rate amounting to WIBOR 3M, plus a 3.4% margin, which amounts to more than 5.1% per annum in the first interest period.

 

Subscriptions for BEST’s series T1 bonds will be accepted by the brokerage firms Dom Maklerski PKO Banku Polskiego, and by Biuro Maklerskie Alior Banku. In total, they operate more than 200 branches across the country.

 

– As it was the case with previous public issues of BEST’s bonds, the nominal value of one bond is PLN 100 and the minimum amount of subscription is 1 bond. This will allow a wide range of investors to participate in our offer, including those with less assets, looking for an attractive alternative to bank deposits or investments in shares – said Krzysztof Borusowski, President of the Management Board of BEST.

 

The 57-month series T1 bonds currently offered by BEST (to be redeemed in September 2022) carry a variable interest rate, amounting to WIBOR 3M plus a 3.4% margin, yielding slightly more than 5.1% per annum in the first interest period.

 

The public offering of BEST’s series T1 bonds uses solutions which were tested during the previous issues of the Company’s bonds, such as the subscription dates and allotment of bonds. Subscriptions for series T1 bonds will be accepted from 16 to 29 November of this year. However, if investors subscribe for more bonds than the Company is offering, the subscription period could be shortened. Upon the Oversubscription Date, 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 the subscribed bonds will be awarded only to investors who subscribed before the Oversubscription Date.

 

 

Time plan for the public offering of BEST’s series T1 bonds:

 

Subscription opening date:

16 November 2017

End of subscription1):

29 November 2017

Allotment date:

30 November 2017

Expected Issue Date:

14 December 2017

Expected date of admission to trading:

21 December 2017

1) The period during which subscriptions are accepted may be shortened if investors oversubscribe for the bonds.

 

The interest rate on series T1 bonds will be calculated from the first day of subscription (as it was the case with the issue of bonds offered by BEST under the previous programme). As a result, there is no period in which no interest is calculated. Therefore, the issue price of the bonds will depend on the day when a subscription is made. On the first day, the price will be equal to the bond nominal value, i.e. PLN 100, and on the following days it will be increased by the equivalent of interest accrued.

 

Day when subscription is made

Issue price of
series T1 bonds (PLN)

16 November 2017

100.00

17 November 2017

100.01

18 November 2017

100.03

19 November 2017

100.04

20 November 2017

100.06

21 November 2017

100.07

22 November 2017

100.08

23 November 2017

100.10

24 November 2017

100.11

25 November 2017

100.13

26 November 2017

100.14

27 November 2017

100.15

28 November 2017

100.17

29 November 2017

100.18

 

The issue of series T1 bonds is the first issue conducted by BEST under the third public issue programme for bonds with a total nominal value of up to PLN 350 million. In 2014-2017, the Company implemented two programmes with a total nominal value of PLN 500 million. Most of the issues carried out under both programmes ended before the planned time date, and there was a large oversubscription.

 

The co-organisers and entities offering BEST’s bonds as part of the current programme are Dom Maklerski PKO Banku Polskiego (which also acts as a global coordinator) and Alior Bank – Biuro Maklerskie.

 

All series of bonds offered by the Company under its public bond issue programmes are being gradually introduced to trading on the Catalyst regulated market operated by the Warsaw Stock Exchange (GPW).

 

 

 

Performance of BEST Group after three quarters of 2017

Performance of BEST Group after three quarters of 2017: continued increase in cash EBITDA, dynamic growth of investments in new claim portfolios, record debt repayments and planned growth on the Italian market.

After three quarters of 2017, the full cash EBITDA generated by BEST Group amounted to PLN 120.5 million, up by 13% YOY. In this period, investments in new claim portfolios amounted to over PLN 200 million, up by 44% YOY.

The increase in the amount of investments has caused a dynamic increase in repayments under the portfolios managed by the Group. In the third quarter of 2017 alone, the repayments reached a record high in the history of the Group (PLN 78 million), and increased by almost PLN 8 million (11%) compared to the second quarter of 2017. In total, over three quarters of 2017, repayments amounted to PLN 210 million, up by 24% compared to the same period last year.

 

BEST Group is growing dynamically. Full cash EBITDA amounted to over PLN 120.5 million, up by 13% YOY, despite significantly higher operating expenses, which amounted to PLN 82 million, compared to PLN 52.4 million in the corresponding period of 2016. The Group’s operating revenues after three quarters of 2017 amounted to PLN 154.1 million, while the net profit amounted to over PLN 46.3 million, up by 19% compared to the entire 2016. 

 

The result of the third quarter of 2017 was additionally affected by significant costs of securing cases exposed to the risk associated with the limitation period in connection with the draft amendments to the Civil Code. These costs amounted to PLN 15.7 million and were significantly higher than in the previous quarters.

 

In the first half of 2017, BEST Group started operating on the Italian market, where it established its investment structure. The Group has already purchased the first claim portfolios with a total nominal value of approx. EUR 150 million and has been selected as the buyer for another claim portfolio with a nominal value of EUR 134 million.

 

In total, during the three quarters of 2017, the Group invested PLN 200 million in claims (+ 44% YOY), and the nominal value of portfolios purchased in this period amounted to nearly PLN 1.7 billion. Repayments of the claims managed by the Group are also clearly on the rise. During the three quarters of 2017, they amounted to PLN 210 million, up by 24% compared to the same period last year. The portfolios due to the Group are characterised by an even higher dynamics. Cumulatively, over 9 months of 2017, repayments amounted to PLN 176.4 million (+ 33% YOY), and in the third quarter of this year alone they amounted to over PLN 67 million, up by 48% YOY.

 

The financial results of BEST Group for three quarters confirm that the Group is still growing very dynamically, and in addition we have gained a new foothold in Italy, where our investments are going according to plan – said Krzysztof Borusowski, President of the Management Board of BEST S.A.

 

According to earlier statements, we assume that investment expenditures in Italy this year will amount to around EUR 20 million, but we want our investment level in this market to increase in the long term. The Italian market is several times larger than the Polish market in the NPL segment of retail clients alone, and at the same time is at a relatively early stage of development. Our purchase of portfolios with a nominal value of EUR 150 million and winning the tender for another portfolio with a nominal value of EUR 134 million confirm that the assumed fast pace of growth on this market in the next quarters is feasible – said Krzysztof Borusowski.

 

The dynamic growth of BEST Group is supported by our investors. In 2017, we acquired PLN 150 million in total as part of public bond issues, and all previous bond issues have attracted a lot of interest. Investors believe in the development potential of our company and treat our debt securities as an attractive and safe investment, which is why we will continue our bond issue programmes for both retail and institutional investors. In October this year, the Polish Financial Supervision Authority approved the issue prospectus for the third public bond issue programme with a nominal value of up to PLN 350 million, and the Management Board of BEST S.A. adopted a resolution establishing another private bond issue programme with a nominal value of up to PLN 250 million. – said Krzysztof Borusowski.

BEST prospectus for the new bond issue approved

The Polish Financial Supervision Authority approved the issue prospectus of BEST S.A. for a new bond issue programme with a total value of up to PLN 350 million. This is the third bond issue programme implemented by BEST. As part of the previous two programmes, the Company raised PLN 500 million in total.

 

– For BEST Group, this year is another period of growing investments in new non-performing debt portfolios, and the first transactions concluded on the Italian market. It is also a period of further dynamic increase in repayments from the claims we manage, which is confirmed by the published results. Our results best testify to the proficient and effective use of the investors’ money. Thanks to a high level of repayments and a strong capital position, we have been able to implement ambitious plans for growth. According to the adopted strategy, our primary goal by 2020 is to become one of the top ten largest claim management groups in Europe in terms of market capitalisation – said Krzysztof Borusowski, President of the Management Board of BEST. – We want to further increase the scale of our business, be an active player on the domestic claim management market, participate in consolidation processes, and continue our expansion on the Italian market. Public bond issues addressed to a wide range of investors will remain the main source of financing for our development. Our positive experience from previous issues strengthens us in the belief that BEST’s bonds are an attractive investment. We can start the first issue as part of the new programme in the coming weeks – added Krzysztof Borusowski. This is the third bond issue programme implemented by BEST. In 2014-2017, the Company implemented two programmes with a total nominal value of PLN 500 million. Most of the issues carried out under both programmes ended before the planned time date, and there was a large oversubscription.

 


The co-organisers and entities offering BEST’s bonds as part of the current programme are Dom Maklerski PKO Banku Polskiego (which also acts as a global coordinator) and Alior Bank – Biuro Maklerskie. All series of bonds offered by the Company under its public bond issue programmes are being gradually introduced to trading on the Catalyst regulated market operated by the Warsaw Stock Exchange (GPW).

BEST Group continues to maintain a dynamic pace of growth

 

  •          PLN 77.9 million worth of repayments under the managed claim portfolios in Q3 2017 – up by 36% YOY
  •           PLN 67.2 million worth of repayments under claim portfolios due to BEST Group in Q3 2017 – up by 48% YOY
  •           over PLN 200 million invested in new claim portfolios in Q1-Q3 2017 (of which PLN 51 million in Q3 2017)
  •           nominal value of portfolios purchased in Q1-Q3 2017 amounting to PLN 1,668.5 million (of which PLN 702.5 million in Q3 2017)

 

In Q3 2017, repayments from the managed claim portfolios in BEST Group amounted to PLN 77.9 million, compared to PLN 57.4 million in the same period last year, up by 36% YOY. During the first three quarters, the Group allocated more than PLN 200 million for investments and acquired new claim portfolios with a total nominal value of PLN 1,668.5 million. This is over PLN 630 million more than the nominal value of claim portfolios acquired by BEST Group in the first three quarters of 2016 (up by 61% YOY).

 

 – Both operating figures and financial results reflect the dynamic increase in the scale of BEST Group's operations in recent quarters. Since the beginning of 2017, we have been observing a significant increase in repayments from claim portfolios, which was undoubtedly due to the completed investments and good economic situation. In the third quarter of 2017, repayments from our portfolios amounted to PLN 77.9 million (up by 36% YOY), while repayments due to BEST Group amounted to PLN 67.2 million (up by 48% YOY). Thanks to a high level of repayments and a strong capital position, we have been able to implement ambitious plans for growth. In Q3 2017 alone, we invested more than PLN 51 million in the acquisition of new portfolios. We are gradually raising money from public bond issues, and we are pleased that our issues are so popular among investors. This confirms our belief that we are an attractive and reliable partner for them on the claim management market. We also have high hopes for business development on the Italian market, where in the middle of the year we carried out the first investments. We assume that, by the end of 2017, investment expenditures in Italy will amount to around EUR 20 million, but we want our investment level in this market to increase in the long term – said Krzysztof Borusowski, President of the Management Board of BEST S.A.

 

Claim portfolios acquired by BEST Group entities and repayments under the acquired claim portfolios

 

(PLN million)

Q1-Q3 2017

Q1-Q3 2016

Movement YOY

Q3 2017

Q3 2016

Movement YOY

Nominal value of claim portfolios acquired

1668.5

1038.0

+61%

702.5

517.9

+36%

Acquisition cost of claim portfolios

200.2

138.6

+44%

51.4

54.2

-5%

Total value of repayments under claim portfolios

209.5

169.1

+24%

77.9

57.4

+36%

Repayments under claim portfolios due to BEST Group 1)

176.4

132.7

+33%

67.2

45.4

+48%

 

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

 

BEST Group acquired the first claim portfolio in Italy

We would like to announce that the company BEST Capital Italy, which belongs to BEST Capital Group, has acquired the first claim portfolio on the Italian market.

The portfolio with a nominal value of EUR 4.88 million was purchased from one of the three largest banking groups operating in Italy. This is the first transaction in a series of transactions that BEST Group intends to conclude in Italy in the second half of 2017.

Dynamic growth of BEST group’s scale of operations in the first half of 2017

 

  •          PLN 131.7 million worth of repayments under claim portfolios – up by 18% YOY
  •           PLN 109.2 million worth of repayments under claim portfolios due to BEST Group – up by 25% YOY
  •           nearly PLN 150 million invested in new claim portfolios with a nominal value of nearly PLN 970 million – up by 76% YOY
  •           successful financing for business growth – PLN 150 million and EUR 7.6 million as part of bond issue and PLN 19 million from share issue to a financial investor
  •           strong capital position enables active participation in the ongoing market consolidation – invitation by BEST of Kredyt Inkaso’s shareholders to negotiate the sale of shares      

 

 

In the first half of 2017, repayments from the managed claim portfolios in BEST Group amounted to PLN 131.7 million, compared to PLN 111.6 million in the same period last year, up by 18% YOY. At the same time, the Group allocated PLN 148.8 million for investments and acquired new claim portfolios with a total nominal value of PLN 965.9 million. This is nearly PLN 450 million more than the nominal value of claim portfolios acquired by BEST Group in the first half of 2016 (up by 86%).

 

Since early 2017, we have seen a dynamic increase in the repayment of the managed claims as a result of the improvement of the economic situation in Poland, the increase in our investments and the emerging potential of SIGMA, which we have used since December 2016. The dynamic growth of repayments confirms that our recent investments in claim portfolios were highly successful and even exceeded our original expectations. We are particularly happy with the increase in claims repayment in the funds that are fully owned by the Group, where the dynamics in the first half of the year were 38%. In the first half of the year, the repayments of claims in the funds BEST I, BEST II and BEST IV NSFIZ amounted to PLN 86.7 million and accounted for 2/3 of total repayments in the funds that we manage. – said Krzysztof Borusowski, President of the Management Board of BEST S.A.

 

Thanks to a high level of repayments and a strong capital position, we have been able to implement ambitious plans for growth. Last year, we invested more than one quarter of a billion zloty in new portfolios on the Polish market, and this year we are going to invest even more. In the second quarter alone, our investments in new portfolios exceeded PLN 70 million. We have also successfully completed the issue of bonds in EUR, allowing us to make initial investments on the Italian market. Additionally, we are regularly raising money from the issue of bonds in PLN. Since January, we have already raised PLN 150 million in this way, and an additional PLN 19 million from the issue of shares. It is worth pointing out that each public issue of our bonds enjoys great popularity among investors. In May this year, a financial institution become one of our shareholders, confirming that we are a reliable partner with many years of experience, excellent results and growth perspectives– said Krzysztof Borusowski.

 

The repayment data and the achieved financial results, which reflect the dynamic growth of BEST’s scale of operations, confirm that we are fully prepared in terms of capital and operations for the consolidation we are currently dealing with on the claim management market. We want to actively participate in this trend in order to further increase the scale of our operations and build an even stronger market position. The call to subscribe for the shares of Kredyt Inkaso announced 10 July serves this exact purpose. – said Krzysztof Borusowski.

 

BEST intends to buy up to 4,269,961 shares of Kredyt Inkaso and increase its share to 66% of the total number of votes at the general meeting of that company. BEST considers the acquisition of the shares of Kredyt Inkaso as a long-term strategic investment whose aim is to create a strong group of entities operating on the claims market in Europe. Taking control over Kredyt Inkaso will allow us to optimise the of sources of capital, strengthen the offer addressed for creditors and debtors, and improve the debt collection processes, also based on modern IT solutions.

 

Claim portfolios acquired by BEST Group entities and repayments under the acquired claim portfolios

 

(PLN million)

Q2 2017

Q2 2016

Movement YOY

H1 2017

H1 2016

Movement YOY

Nominal value of claim portfolios acquired

547.4

197.9

+177%

965.9

519.7

+86%

Acquisition cost of claim portfolios

70.4

39.7

+77%

148.8

84.4

+76%

Total value of repayments under claim portfolios

70.1

59.2

+18%

131.7

111.6

+18%

Repayments under claim portfolios due to BEST Group 1)

58.5

46.3

+26%

109.2

87.3

+25%

 

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

BEST HAS INVITED THE SHAREHOLDERS OF KREDYT INKASO TO NEGOTIATE THE SALE OF SHARES

Today BEST S.A. made a public call to sign up for the sale of shares of Kredyt Inkaso S.A. As a result of the call, the company intends to buy up to 4,269,961 shares and increase its share to 66% of the total number of votes at the general meeting of Kredyt Inkaso. BEST currently holds 4,268,134 shares, vested with 32.99% of the total number of votes.

As one of the market leaders in claims management in Poland, BEST has been continuously growing its business over the last several years. The Company has been listed at GPW since 1997. In 2016, BEST Group generated over PLN 100 million net worth of profit, before including the write-down for the measurement of Kredyt Inkaso’s shares. (more than PLN 38 million reported after taking the write-down into account). BEST’s capitalisation at the end of June 2017 was approx. PLN 700 million, and the total nominal value of the company's own claims and claims owned by other entities managed by the company is over PLN 13.4 billion (as of 31 March 2017).

 

“The market environment in Poland is conducive, but the claims management market is becoming ever more competitive. Only operating efficiency, a large scale of business and comprehensive funding opportunities as well as a broad offer for creditors and debtors, backed by modern IT systems, can ensure dynamic growth. The scale of operations of companies in the claims management industry will become increasingly dependent on foreign markets, as BEST has just entered the perspective-rich Italian market with BEST Capital Italy, while Kredyt Inkaso has a strong position on the Romanian market – said Krzysztof Borusowski, President of the Management Board of BEST S.A. - In BEST, we have recently completed the internal consolidation process of the company, implemented a modern IT system and made comprehensive preparations for a rapid expansion. This expansion may involve assuming responsibility for the operating activities and the development of Kredyt Inkaso. That is why we have invited Kredyt Inkaso’s shareholders to sell their shares and discuss this topic”. – he added.

 

The price proposed in the call is PLN 22 per Kredyt Inkaso’s share and meets the requirements specified in Article 79(1) and (2) of the Public Offering Act. A prerequisite for the acquisition of the shares by BEST is that at least 3,493,772 shares are subscribed for. The threshold in the call to subscribe was set at a level that would give BEST, together with the shares it already holds, at least 60% of the total number of shares and votes at the general meeting of Kredyt Inkaso, and thus would allow actual control over Kredyt Inkaso.

 

The call is made on the condition of obtaining consent from the President of the Office of Competition and Consumer Protection to the concentration involving the acquisition of control over Kredyt Inkaso by BEST.

 

BEST considers the acquisition of the shares as a long-term strategic investment whose aim is to create a strong group of entities operating on the claims market in Europe. Taking control over Kredyt Inkaso will allow us to optimise the of sources of capital, strengthen the offer addressed for creditors and debtors, and improve the debt collection processes, also based on modern IT solutions.

 

“A successful call, and thus a combination of the key competences of BEST and Kredyt Inkaso is a chance to strengthen the position of both companies, both on the domestic and European market. Taking over responsibility for the development of Kredyt Inkaso by BEST would mean a rapid increase in the scale of operations and market share, and, as a result, a dynamic improvement in the results of both companies and an increase in shareholder value by increasing the market value of both companies. We see ourselves as among the top 5 largest companies on the European claims management market in the future. – stressed Krzysztof Borusowski After a possible takeover of the company’s stake of shares, we will first focus on strengthening the operations of Kredyt Inkaso and achieving operational synergies between the companies. We are convinced that the joint development of BEST and, above all, Inkaso Loan would be much faster and would bring a much higher value to the shareholders of both companies in the coming quarters. For the sake of Kredyt Inkaso, the shareholders should reach an agreement to create value together” – said Krzysztof Borusowski.

 

The expected commencement date for accepting subscriptions for the sale of the shares of Kredyt Inkaso S.A. as part of the call is 1 August 2017, and the subscription is expected to end on 14 August 2017. The planned transaction date at GPW is 18 August 2017. Subscriptions for the sale of the shares subject to the call will be accepted at the brokerage outlets of DM BPS.

BEST bonds worth PLN 60 million already allotted to investors

BEST has allotted its series R4 bonds with a total value of PLN 60 million to 638 investors. The issue of series R4 debt securities finalises the implementation of the second public bond issue programme, under which the Company raised PLN 200 million in total.

 

Due to high demand, the subscription period for R4 series bonds was shortened to 4 days, and the subscription ended on 25 May, although it was originally planned to continue until 5 June. On the third day of the subscription, 24 May, the number of BEST’s debt securities subscribed to by the investors exceeded the number of bonds offered. The subscription totalled approx. PLN 73.4 million.

 

Due to the early end of the subscription, the Company also sped up the allotment of the bonds from June 6 to May 26. According to the terms of the issue, subscriptions made on 22 May and 23 May were all allotted, while those made on 24 May and 25 May were reduced proportionally. The average rate of reduction on those days was 92.48%.

 

– The issue of series R4 bonds ends the second programme of the public issue of bonds with a total value of PLN 200 million. We planned that the programme would last for a year, but we completed it within eight months. We ended three out of four issues as part of the programme earlier. We are very pleased with the continuing high interest in the debt securities offered by BEST. We see it as evidence of the investors’ recognition for our achievements and strategies for further growth. This is also a clear signal for us that our Company is perceived as a credible and attractive issuer, allowing us to plan further public bond issues to finance our investments in the future. We will not hesitate to seize this opportunity – said Krzysztof Borusowski, President of the Management Board of BEST.

 

The second public bond issue programme has been implemented by the Company since October 2016. In the first half of last year, BEST completed the first two-year programme with a total nominal value of PLN 300 million. In total, under both programmes, the Company raised PLN 500 million from a wide range of investors.

 

All series of bonds offered by the Company under its public bond issue programmes are being gradually introduced to trading on the Catalyst regulated market operated by the Warsaw Stock Exchange (GPW). The series R4 debt securities are expected to be admitted to trading on 28 June this year.

High demand for BEST bonds, subscription shortened to 25 May

On 24 May, which was the third day of the subscription, the demand for BEST’s series R4 bonds with a total nominal value of PLN 60 million exceeded the number of bonds offered. As a result, subscriptions will only be accepted today, and any subscriptions made on 24 and 25 May will be reduced proportionately.

The public offer of BEST’s bonds has been highly popular among investors and will end earlier. The number of subscriptions for 5-year series R4 bonds exceeded the number of offered debt securities on the third subscription day. Therefore, according to the terms of issue, the acceptance of subscription ends today, 25 May, rather than 5 June as originally planned. Investors who subscribed on 22 and 23 May will be allotted as many bonds as they subscribed for, while subscriptions made on 24 and 25 May will reduced proportionately.

Series R4 bonds are offered as part of the final phase of the second programme for the public issue of BEST’s bonds with a total value of up to PLN 200 million. In the current issue, the Company has offered investors 600,000 bonds with a nominal value of PLN 100 each, and a total nominal value of PLN 60 million. The bonds carry a variable interest amounting to WIBOR 3M, plus a 3.3% margin, which amounts to more than 5% per annum in the first interest period. That bond series will be redeemed in June 2022.

The entity offering BEST’s bonds as part of the second programme is the brokerage firm Dom Maklerski PKO Banku Polskiego. Subscriptions for series R4 can also be placed with the brokerage firms Biuro Maklerskie Alior Banku and Dom Maklerski Banku Handlowego.

As has been the case with all bonds offered under the public bonds issue programme of BEST, the series R4 debt securities will be introduced into trading on the regulated market operated by the Warsaw Stock Exchange as part of Catalyst.

***

General information about BEST

BEST S.A. specialises in the 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.

Combining competences in debt collection, and in creating and managing investment funds, allow 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 more than PLN 13.4 billion (as of 31 March 2017). In 2016, BEST Group generated a net profit of over PLN 38 million and more than PLN 148 million of full cash EBITDA, while operating revenues exceeded PLN 210 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

***

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 firm Dom Maklerski PKO Banku Polskiego (www.dm.pkobp.pl).

BEST launches public bonds offer worth PLN 60 million.

BEST will offer 5-year series R4 bonds with a total nominal value of PLN 60 million. Subscriptions will be accepted beginning 22 May this year in the brokerage firms Dom Maklerski PKO Banku Polskiego, Biuro Maklerskie Alior Banku and Dom Maklerski Banku Handlowego.

“Following high investments in 2016, at the beginning of this year BEST Group has seen a dynamic increase in repayments under the managed claims portfolios and investments in new ones. I am convinced that our group will grow even faster in the quarters to come. We are preparing to purchase our first claims portfolios in Italy. With an issue worth PLN 60 million, we are planning to close our second public bonds issue programme worth up to PLN 200 million. The bonds are one of our main sources of funding for investments, and we already have a new programme on our minds”, said Krzysztof Borusowski, President of BEST’s Management Board.

As part of the announced issue, BEST offers to investors 600,000 series R4 bonds with a nominal value of PLN 100 each. The 5-year bonds (to be redeemed in June 2022) 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. The interest rate is the same as in the two previous issues, where already on the first day of subscription the investors subscribed for more bonds than the Company offered.

As was the case with previous issues of bonds offered under the current programme, the interest rate on series R4 bonds will be calculated from the first day of the subscription process. Therefore, the issue price of the bonds will depend on the day when a subscription is made. On the first day, the price will be equal to the bond nominal value, i.e. PLN 100, and on the following days it will be increased by the equivalent of interest accrued.

Day when subscription is made

Issue price of series R4 bonds (PLN)

22 May 2017

100.00

23 May 2017

100.01

24 May 2017

100.03

25 May 2017

100.04

26 May 2017

100.06

27 May 2017

100.07

28 May 2017

100.08

29 May 2017

100.10

30 May 2017

100.11

31 May 2017

100.12

1 June 2017

100.14

2 June 2017

100.15

3 June 2017

100.17

4 June 2017

100.18

5 June 2017

100.19

Subscriptions for series R4 bonds will be accepted from 22 May to 5 June this year. However, if investors subscribe for more bonds than the Company is offering, the subscription period could be shortened. Upon the Oversubscription Date, 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 the subscribed bonds will be awarded only to investors who subscribed before the Oversubscription Date.

Similarly to the previous issue, subscriptions for series R4 bonds will be accepted by the brokerage firms Dom Maklerski PKO Banku Polskiego, Biuro Maklerskie Alior Banku and Dom Maklerski Banku Handlowego. In total, they operate more than 200 branches across the country.

Time plan for the public offering of BEST’s series R4 bonds:

 

Subscription opening date:

22 May 2017

End of subscription1):

5 June 2017

Allotment date:

6 June 2017

Expected Issue Date:

21 June 2017

Expected date of admission to trading:

28 June 2017

1) The period during which subscriptions are accepted may be shortened if investors oversubscribe for the bonds.

***

General information about BEST

BEST S.A. specialises in trading in and managing 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.

Combining competences in debt collection, and creating and managing investment funds 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 more than PLN 13.4 billion (as of 31 March 2017). In 2016, BEST Group generated a net profit of over PLN 38 million and more than PLN 148 million of full cash EBITDA, while operating revenues exceeded PLN 210 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

***

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 firm Dom Maklerski PKO Banku Polskiego (www.dm.pkobp.pl).

BEST Group records higher repayments and cash EBITDA in Q1 2017

In the first quarter of 2017, the full cash EBITDA generated by BEST Group amounted to nearly PLN 31 million, up by 11% year-on-year, mainly as a result of the increase in repayments under the claims portfolios in that period.

BEST Group continues to maintain a fast pace of growth. At the beginning of the year, repayments due to the Group increased dynamically from PLN 41.0 million in Q1 2016 to PLN 50.7 million in Q1 2017, as a result of which the comparable cash EBITDA (excluding the results of Kredyt Inkaso) in Q1 2017 amounted to PLN 30.8 million, up by 11% YOY. The Group’s operating revenues in that period were PLN 35.8 million, the operating profit amounted to PLN 13.5 million and the net result was PLN 6.2 million. In Q1 2017, the Group made intense efforts to enter the Italian market, and there were no indications for an upward revaluation in the claims portfolios, as was the case in Q1 2016 in connection with a very high number of settlements concluded with customers in that period.

In Q1 2017, repayments under the managed claims portfolios increased to PLN 61.6 million from PLN 52.5 million in Q1 2016. In the same period, the Group invested PLN 78.4 million in new portfolios, which is 75% more than in the same period in 2016. With that investment, the Group acquired claims portfolios with a nominal value of approx. PLN 418 million.

“The first quarter of 2017 was very intense. In January, we fully adopted SIGMA, our proprietary operating system that supports claims management in the whole Group. We also successfully performed two public issues of bonds from which we raised a total of PLN 90 million. It is worth stressing that the issues enjoyed great popularity with our investors, and in both issues the total number of bonds offered was fully subscribed already on the first day. It is a signal that the investors are confident in our growth potential and see our debt securities as an attractive and safe investment,” said Krzysztof Borusowski, President of the Management Board of BEST S.A.

“We are also happy to have been able to invest more in new claims portfolios. In the first quarter of 2017, we invested PLN 78.4 million, allowing us to acquire portfolios with a nominal value of more than PLN 418 million. For comparison, in the first quarter of 2016 the nominal value of the acquired claims portfolios was about PLN 322 million. Last month, we announced our entry into the Italian market, where we will soon purchase our first claims portfolios, and I am convinced that we will soon grow even faster thanks to that. Another important fact is that, in the first quarter of this year, repayments due to BEST increased dynamically, which directly translated into an increase of our cash EBITDA. Our net result is lower than in the first quarter of 2016, but this is largely because the revaluation of claims, which is non-cash in nature, was lower than in the previous period,” he added.

***


General information about BEST

BEST S.A. specialises in the 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.

Combining competences in debt collection, and creating and managing investment funds allows 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 more than PLN 13.4 billion (as of 31 March 2017). In 2016, BEST Group generated a net profit of over PLN 38 million and more than PLN 148 million of full cash EBITDA, while operating revenues exceeded PLN 210 million.

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

Joanna Sokołowska

CC Group Sp. z o.o.

22 440 14 40, 605 959 539

j.sokolowska@ccgroup.com.pl

 

 

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

BEST Group has found a new investor

The Polish claims market has been developing very dynamically in recent quarters, opening up promising growth prospects as more and more investors are placing their trust in our company. As of late, we have managed to find another major investor – the closed-end investment fund Quercus Multistrategy FIZ, which is managed by Quercus TFI, an investment fund company. It must be stressed that a share acquisition price of PLN 27.50 confirms BEST Group’s dynamic growth and continuous increase in its value. The proceeds from the issued shares will be used to purchase more claims portfolios and will positively affect our financial indicators, which should translate into better terms of bonds issue. Currently, the Company is implementing a public bonds issue programme, and we are planning to use our limit during the term of validity of the prospectus – said Krzysztof Borusowski, President of the Management Board of BEST S.A.

Since the beginning of the year, the Group has raised PLN 90 million from two public bond offers. Both offers of our debt securities were met with great interest by the investors. Under the current BEST Bonds Issue Programme, we can issue an additional PLN 60 million worth of bonds.

In 2016, BEST recorded the highest in history repayments under the managed claims portfolios and investments in new claims. Our Q1 2017 operating results show a continued growth trend, with Q1 repayments under the managed portfolios amounting to PLN 61.6 million and investments in portfolios rising to PLN 78.4 million, allowing BEST to acquire portfolios with a total nominal value of PLN 418.5 million (a 30% increase YOY, i.e. by nearly PLN 100 million).

The Management Board of BEST has been authorised by the General Meeting to issue 5 million shares as part of the authorised capital. To date, the Company has issued 2,053,609 shares (this includes the issue for Quercus Multistrategy FIZ) as part of that authorisation, which means that it can issue additional 2,946,391 shares by 29 March 2019. Every resolution of the Management Board on determining the issue price of shares, cancelling the shareholders’ pre-emptive right to shares and on acquiring shares in exchange for a contribution in kind must be approved by the Supervisory Board.

***

General information about BEST

BEST S.A. specialises in trading in and managing 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.

Combining competencies in debt collection, and creating and managing investment funds 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 more than PLN 12.8 billion (as of 31 December 2016). In 2016, BEST Group generated a net profit of PLN 38.8 million, while its operating revenues amounted to PLN 210.3 million.

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

Joanna Sokołowska

CC Group Sp. z o.o.

22 440 14 40, 605 959 539

j.sokolowska@ccgroup.com.pl

 

 

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

BEST GROUP commences operations in the Italian market

After a hectic 2016, BEST Group shows no signs of slowing down. According to the report published by the Group, in 2017 BEST will commence operations outside Poland. The first foreign market that BEST plans to enter is that of Italy, where it soon plans to purchase its first debt portfolios.

“We believe that the Italian market has vast potential for growth and that it is still at an early stage of development. The factors that should additionally support the development of this claims market are conducive legal regulations facilitating claims transactions and the recovery of amounts due from debtors. A significant growth in the number of transactions on the claims market in recent years is the best proof for that. We hope that by using our unique know-how, developed through many years of operating on the domestic claims market, and the implementation of innovative technological solutions, commencing operations on Italian market will allow us to considerably increase the pace of our growth in the upcoming years,” says Krzysztof Borusowski, President of the Management Board of BEST S.A.

Together with establishing BEST Capital Italy, the Group is extending its operations by entering the Italian market. BEST Capital Italy is a special-purpose securitisation company whose operations include investing in claims or assets connected with claims. The structure of BEST Capital Italy assumes that all excess funds generated by the companies will be paid out to the investors, which are entities wholly owned by BEST Capital Group. The issuer does not preclude any changes in the investors’ structure in the future.

***

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.

The combination of expertise in debt collection and in the establishment and management of investment funds allows the entity to concentrate all elements of its business model within a single capital group.

The total nominal value of own debts and third party debts managed by BEST exceeds PLN 12.8 billion (as at 31 December 2016). In 2016, BEST Group generated a net profit of PLN 38.8 million, while its operating revenues amounted to PLN 210.3 million.

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

Joanna Sokołowska

CC Group Sp. z o.o.

22 440 14 40, 605 959 539

j.sokolowska@ccgroup.com.pl

 

 

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

The BEST group off to a good start into the new year Repayments and debt investments grow in Q1 2017

In Q1 2017 the repayments under the managed debt portfolios amounted to PLN 61.6 mln at the Group level, as compared to PLN 52.5 mln in the same period last year, which means over a 17% increase y/y. During this period, the Group invested PLN 78.4 mln in new debt portfolios, acquiring debt portfolios with the nominal value of PLN 418.5 mln. For comparison’s sake, in Q1 2016 the Group invested PLN 44.7 mln in new debt portfolios, acquiring debt portfolios with the total nominal value of PLN 321.8 mln. – In 2016, the repayments under the managed debt portfolios were record-high(+30% y/y). Another positive trend was the significant growth of investments in new debt portfolios – we invested more than PLN 250 mln during the year. Our plans for this year are equally ambitious. The operating results in Q1 2017 prove that we are not slowing down. We have been able to maintain the high volume of recovered receivables, as well as keep the investments in new portfolios growing. We hope this will translate into further dynamic growth. We intend to continue to increase the scale of our operations – says Krzysztof Borusowski, President of the Management Board, BEST S.A.

- We do realize that the debt management market is becoming more and more competitive. With this in mind, we are constantly working on improving our operational efficiency. Recent months have been particularly busy as we have been implementing SIGMA, a proprietary operating system designed to support the debt management process across the Group. For us, this marks a huge change, not only at the technological level, but also quality-wise – adds Krzysztof Borusowski.

Debt portfolios acquired by BEST Group entities and repayments under the acquired debt portfolios

(PLN million)

Q1 2017

Q1 2016

Movement YOY

Nominal value of debt portfolios acquired

418.5

321.8

+30%

Acquisition cost of debt portfolios

78.4

44.7

+75%

Total value of repayments under debt portfolios

61.6

52.5

+17%

Repayments under debt portfolios due to BEST Group 1)

50.7

41.0

+24%

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

***

General information about BEST

BEST S.A. specialises in trading in and managing non-performing debt and has been listed on the Warsaw Stock Exchange since 1997. BEST Group actively invests in debt portfolios (especially 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.

The combination of expertise in debt collection and in the establishment and management of investment funds has allowed the entity to concentrate all elements of the business model within a single capital group.

The total nominal value of own debts and third party debts managed by BEST exceeds PLN 12.8 billion (as at 31 December 2016). In 2016, BEST Group generated a net profit of PLN 38.8 million with operating income amounting to PLN 210.3 million.

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

Joanna Sokołowska

CC Group Sp. z o.o.

22 440 14 40, 605 959 539

j.sokolowska@ccgroup.com.pl

 

 

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

The biggest ever repayments and investments in new debt portfolios in 2016

In 2016 the Group recorded the biggest ever repayments from the debt portfolios managed by the Group as well as investments in new debt portfolio.

According to the report published by BEST, last year repayments due to the Group totalled PLN 180 million compared to PLN 139 million in 2015, which means an increase of 30% YoY. Throughout 2016 the Group earmarked PLN 258.3 million for investments in new debt portfolios, as a result acquiring debt portfolios with a total nominal value of PLN 2.3 billion, i.e. three times more than in 2015. Thanks to a consistently implemented strategy providing for systematically increasing the market share, the Group at present has a share of nearly 20 percent in the Polish debt market. As of 31 December 2016, the nominal value of the debt managed by the Group stood at PLN 12.8 billion, which places BEST among the leaders of the debt management market in Poland.

In 2016 the Group posted revenues from operating activities of PLN 210.3 million and a net profit of PLN 38.8 million. BEST Group delivered worse financial performance year-on-year mainly as a result of a decision to recognise impairment losses of PLN 69.3 million on the investment in Kredyt Inkaso. Excluding the impairment losses, the net profit would have been PLN 108 million in 2016 compared to PLN 82.2 million in 2015, and so would have increased by 31 percent YoY.

In 2016 the profit from operating activities rose to PLN 133.6 million compared to PLN 88.2 million in the preceding year as a result of expanding business as well as implementing technological and operating improvements.

“We had a successful year. At present the Group is in a very good condition, both in financial and operating terms. First of all, we are pleased with record growth in repayments from the debt portfolios managed by the Group, which enabled us to generate total operating revenues of PLN 210.3 million in 2016, so nearly 50% more than in the preceding year. Record high growth in investments in new debt portfolios deserves attention too. Last year we purchased 18 portfolios with a total nominal value of PLN 2.3 billion. Although we failed to complete the merger with Kredyt Inkaso announced in early 2016, we proved that we are able to set ambitious goals for ourselves and perform them consistently”, says Krzysztof Borusowski, President of the Management Board of BEST S.A.

“In December, we successfully migrated data and implemented SIGMA, our original operating system supporting the debt management process in the entire Group, finally adopting it for use from January 2017. Thanks to using innovative technological solutions provided by SIGMA, we have improved our operating efficiency considerably, which will enable us to continue expanding our business scale. There is no doubt that not only in operating and financial terms, but also in technological terms we are prepared to continue expanding the operations of the Group dynamically in Poland, but abroad too”, adds Krzysztof Borusowski.

BEST’s series R3 bonds go to over 645 investors

BEST allotted series R3 bonds with a total value of 60 million PLN, which go to 645 investor portfolios. Due to the very high demand for debt securities offered by the company, the subscription period was shortened to two days and all subscriptions were reduced by 28.57% on average.

 

The subscriptions for BEST’s series R3 bonds were accepted only for two days, 2 and 3 March, not until 16 March as originally planned. However, investors had already subscribed for more bonds than the company was offering on the first day of subscription. Subscriptions made on 2 and 3 March totalled approx. PLN 84 million. According to the final terms of issue, all subscriptions were reduced proportionately, with the average reduction rate amounting to 28.57%.

As a result of the early subscription closure, BEST also accelerated the date of bond allotment from 17 March to 6 March. The series R3 bonds were allotted to 645 investors.

“We consider the very high demand for BEST’s bonds to be a sign of the investors’ trust in our company and strategy. It is also a very important and optimistic indication that we may plan subsequent bond issues as a form of financing for the further development of BEST Group. Within the current bond issue programme, we may still offer debt securities with a value of PLN 60 million and, as announced, we intend to implement the programme in full,” says Krzysztof Borusowski, President of the Management Board of BEST.

BEST has offered investors 600,000 series R3 bonds with a nominal value of PLN 100 each and a total nominal value of 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.

A distribution consortium of brokerage houses accepting subscriptions was established to support investor participation in the offering of BEST’s series R3 bonds. Subscriptions for the company’s bonds were accepted at Dom Maklerski PKO Banku Polskiego, being the issuing agent for the current programme of BEST’s bond issue, and at Biuro Maklerskie Alior Banku as well as Dom Maklerski Banku Handlowego. In total, they operate nearly 250 branches across the country.

The company plans to introduce series R3 bonds as well as all bonds offered under the public programme of BEST’s bond issue into trading on the regulated market operated by the Warsaw Stock Exchange as part of Catalyst.

***

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

***

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).

Another series of BEST bonds sold

Subscriptions for BEST bonds worth a total of PLN 60 million have already reached the subscription limit on the first day of subscriptions. This means that subscriptions are closing today and all subscriptions are subject to reduction.

Once again, the offering of BEST bonds has closed early, this time due to the very high demand for the series R3 bonds. Due to the fact that the subscriptions already exceeded the number of bonds offered on the first subscription day, we are ending the subscription today, on 3 March, instead of 16 March, as originally planned. Furthermore, according to the final terms of issue, all subscriptions will be reduced proportionately.

Similarly, the subscription period for series R2 bonds offered in January was also shortened.

Within the current issue BEST offers investors 600,000 series R3 bonds with a nominal value of PLN 100 each, totalling PLN 60 million. These 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.

BEST’s bonds under the current second programme of the public bond issue are offered by the brokerage firm Dom Maklerski PKO Banku Polskiego. A novel feature was the establishment of a distribution consortium of brokerage houses accepting subscriptions. As before, subscriptions for BEST’s series R3 bonds are accepted by the brokerage firm Dom Maklerski PKO Banku Polskiego and additionally by Biuro Maklerskie Alior Banku S.A. and Dom Maklerski Banku Handlowego S.A. In total, they operate nearly 250 branches across the country.

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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).