BEST: KREDYT INKASO SHARES MAY BE WORTH MORE

BEST upholds its plans to merge with Kredyt Inkaso and believes that the results of the shareholders' harmonious cooperation could be an attractive alternative to the tender offer announced by the Waterland fund. It is possible that the value of Kredyt Inkaso will increase significantly in comparison with the price in the tender offer.

"I still think that the merger of BEST and Kredyt Inkaso is the most favourable scenario for all parties. The companies are essentially complementary and the synergy effects resulting from the merger could generate a significant value in a short time. We are open to cooperation with other shareholders in every configuration. Therefore, we are patiently waiting for the completion of the tender offer announced by Waterland, when we get to know who will be our partner in the company," said Krzysztof Borusowski, President of BEST.

Last year BEST and Kredyt Inkaso for the first time estimated the benefits that the merger would bring. They assessed that the merger would make it possible to double the fundamental value of the merged entity within two years in comparison to the best cumulative scenarios for each entity separately.

"I believe that the successful completion of the tender offer will allow us to reach an agreement with the new shareholder. Waterland is a professionally managed, international investment fund and I am sure that we will have the same aim: to develop and build the value of the company. If the tender offer is unsuccessful, then after 12 September we intend to present our offer to the existing shareholders," added Krzysztof Borusowski.

BEST has been experiencing an unprecedented growth for several years, resulting in achieving a leading position in the receivables management market in Poland. It has been consistently achieving excellent results and expanding the range of its activities. The value of the company on the WSE has increased sixteen times within the last five years, but in the opinion of PwC it is still underestimated.

"The company has excellent prospects for dynamic growth. Its foundations are: advanced­ technologies, high standard of management, effectiveness of activities and an excellent team of professionals. Currently, we intend to successfully transfer our competencies developed on the domestic market onto the international market," said Krzysztof Borusowski.

The consolidation of two large domestic entities creates a unique opportunity to build the value in the same way it was carried out in the most developed markets. The implementation of the above scenario ensures higher returns on investments, cheaper ways of obtaining the capital necessary for further development, and, consequently, the creation of the joint leading operation in Poland and one of the leading entities in the prospective receivables market in Central and Eastern Europe.

BEST is the largest shareholder in Kredyt Inkaso, with 32.99% of the shares.

A presentation reflecting the benefits resulting from the merger of the companies (December 2015): http://best.com.pl/files/39/RB65.pdf.

BEST S.A. DECLARATION

In connection with the receipt from Kredyt Inkaso SA of the payment demand for the sum of PLN 60.7 mln to cover losses related to the termination of the receivables portfolio management agreements by funds from the Trigon and Agio groups, we announce that accusations made against the largest shareholder of the company are unfounded, and just compromise the present Management Board of Kredyt Inkaso, which firstly regularly blames BEST for the poor situation of the company, secondly demands compensation from its largest shareholder, and thirdly cannot guarantee the company the proper running of its interests.

In fact, putting the blame on BEST for problems in the company is aimed at covering up the inefficiencies in managing it. The dispute between shareholders is used as a convenient excuse for all failures and the loss of trust by key business partners.

Blaming BEST for the alleged situation proves the Management Board's inability to manage the company with due attention devoted to shareholders' interests, and its lack of responsibility for its current situation and problems it generates.

We would like to point out that KI has not made public the details concerning the termination of the agreements by Trigon and Agio. Nevertheless, our long experience in managing receivables unambiguously indicates that investment funds care about the portfolio servicing quality, which directly translates into their financial results. It is probable that a poor quality of service resulted in the termination of the agreements.

Moreover, actions carried out by Paweł Szewczyk should be deemed to have been aimed at causing the widest possible media repercussion in connection with the tender offer for shares of Kredyt Inkaso announced by the Waterland fund. Currently, the President of Kredyt Inkaso is taking part in the active promotion of the tender offer and in encouraging shareholders to sell their shares. Submitting the payment demand and filing a statement of claim against Krzysztof Borusowski should also be considered as a way of influencing the shareholders' decisions on participation in the tender offer. The aim is to impact investors who hesitate to resell the shares.

Mariusz Kloska joins BEST S.A. - A new Foreign Investment Division established

Mariusz Kloska joins BEST as a manager with international experience in the financial and debt collection industry. He takes the position of Director of the new Foreign Investment Division, to be responsible for readying BEST for international expansion.

"The expansion of activities outside Poland constitutes a natural direction for the company's development, helping to strengthen the position of BEST as a leader in the debt collection industry in the region. I am convinced that Mariusz Kloska with his knowledge and experience gained on international markets is the right person to contribute to the BEST successful commencement of a new phase in the company's history said Krzysztof Borusowski, President of BEST.

Mariusz Kloska is a manager with more than twenty years of experience in senior positions within the debt collection industry in Poland and abroad. In his last position he acted as the president of the DTP debt collection agency, while earlier, for almost a decade, he worked in Russia, where he was in charge of the debt collection division of Alfa Bank. Then, as the Managing Director, he was responsible for establishing a base for the company EOS Russia, the Russian branch of the international EOS Group, which is currently one of the top players on the Russian receivables market. Mariusz Kloska worked for EOS Russia until September 2015.

BEST has established a Foreign Investment Division to help prepare a strategy concerning the development and execution of activities on foreign markets.

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General information about BEST

BEST S.A. has been listed on the Warsaw Stock Exchange since 1997, and specialises in the trading and management of irregular receivables. The BEST Group invests actively in receivable portfolios (including banking portfolios) with the use of securitisation funds and provides debt recovery services on a contract basis – for the benefit of banks, telecommunications and energy companies, as well as other entities offering mass services.

BEST is also the only shareholder of BEST TFI, which manages investment funds whose assets amount in total to PLN 984 mln (as of 30 December 2015). The combination of competencies in the scope of debt collection and the creation and management of investment funds has allowed the company to concentrate all elements constituting the business model into one capital group.

The total nominal amount of own receivables and receivables belonging to other entities managed by BEST is PLN 10.6 billion (as of 30 December 2015). In 2015 the BEST Group generated a net profit of PLN 82.2 mln with an operating income of PLN 140.1 mln.

 

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More Information:

Mariusz Ilnicki

+48 668 48 36 73

mariusz.ilnicki@best.com.pl

BEST has produced a significant increase in claims repayments, invested in new portfolios and submitted the prospectus for a second bond issue programme to the PFSA.
  • In H1 2016, the funds managed by BEST invested almost PLN 85 million in claims portfolios with a total par value of more than PLN 520 million. This constitutes an increase by 31% and 21%, respectively, in comparison with the corresponding period of 2015.
  • Total repayments from the purchased claims portfolios in Q1 2016 amounted to almost PLN 112 million, of which PLN 87.4 million was obtained by the BEST Group, and that was 35% more than in the previous year.
  • BEST submitted the issue prospectus regarding the second programme of public bond issue with a total value of up to PLN 200 million to the Polish Financial Supervision Authority. The Group intends to continue with its dynamic development and it will obtain money for further investments primarily from bond issues.

“In line with our announcements we have begun intensive work to launch the second programme of public bond issue with a total value of up to PLN 200 million. This week, we have submitted the issue prospectus to the Polish Financial Supervision Authority,” said Krzysztof Borusowski, CEO of BEST. “The dynamically growing profit is the best proof that we can efficiently use money obtained from investors, strengthening the image of the BEST Group as a desired and reliable issuer of corporate bonds. We are counting on a repeat of the success of our first programme of public bond issues through which we obtained a total of PLN 300 million in the last two years and some of the offered bond series sold out practically on the spot. We intend to continue the strategy assuming that the development of our business will occur primarily through an increase of investment in non-performing debt portfolios,” Krzysztof Borusowski added.

Q2 2016 was yet another quarter in which the BEST Group registered a significant increase in key operating results. Total repayments from the purchased claims portfolios in part attributable to the BEST Group amounted to PLN 46.4 million in Q2 2016, i.e. they increased by 41% as compared to the corresponding period in 2015. Cumulatively, over the first half of 2016, repayments from claims portfolios amounted to PLN 87.4 million, which means an increase by 35% year-on-year. “In terms of repayments obtained, the second quarter was the best in the history of our group. It is primarily the result of a larger scale of operations, investment in a modern IT system and implementation of new effective solutions and products in the area of amicable debt collection,” stressed the CEO.

At the same time, BEST invested in new non-performing debt portfolios. In H1 2016, group entities purchased claims portfolios with a total par value of more than PLN 520 million for a price close to PLN 85 million. To compare, in the first half of 2015, the funds managed by BEST purchased claims portfolios with a total par value of PLN 431 million by investing more than PLN 64 million.

The BEST Group began publishing cyclical information on the par value of purchased claims portfolios and investment expenditure on their purchases in mid-2015. Starting today, these data will be also supplemented with information on the total value of repayments from the purchased claims portfolios (including the portion attributable to the BEST Group) and the fair value of claims portfolios.

Claims portfolios purchased by BEST Group entities and repayments from the purchased claims portfolios

(PLN million)

Q2 2016

Q2 2015

Y/y change

H1 2016

H1 2015

Y/y change

Par value of purchased claims portfolios

198.3

431.4

-54%

520.1

431.4

21%

Cost of acquisition of claims portfolios

39.7

64.3

-38%

84.4

64.3

31%

Total value of repayments from claims portfolios

52.5

44.5

18%

111.7

87.7

27%

Repayments from claims portfolios owed to the BEST Group 1)

46.4

32.8

41%

87.4

64.7

35%

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

The Management Board decided not only to extend the scope of published information but also to increase reporting frequency from semi-annually to quarterly. Information on investments in claims portfolios and repayments from the purchased portfolios will now be published on the 15th day of the month following the end of each quarter.

“By caring about the transparency and effectiveness of our actions in the area of investor relations, we consistently develop an information policy, setting the best market standards. Thanks to the changes being introduced currently, investors will receive more of the important information regarding our activities, and with higher frequency, even before the publication of the relevant periodic reports. At the same time we will ensure equal, common access to this information,” underlined Krzysztof Borusowski.

Full information regarding the financial results that the BEST Group achieved in the first half of 2016 will be presented in a consolidated periodic report with a planned publishing date of 26 August.

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General information about BEST

BEST S.A. is a company listed on the Warsaw Stock Exchange since 1997, specialising in trading in and managing non-performing debt. The BEST Group actively invests in debt portfolios (mainly bank portfolios) using securitisation funds; it also provides debt collection services on a commission basis: to banks, telecoms, power sector companies and other providers of mass-market services.

BEST is also the sole shareholder of BEST TFI, which manages investment funds with total assets of over PLN 984 million (as of 30 December 2015). With its combined expertise in debt collection and in the creation and management of investment funds, BEST has been able to aggregate every component of the business model within one capital group.

The total nominal value of own debt and debt of other entities managed by BEST is over 10.6 billion PLN (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.

For further information visit www.best.com.pl or contact:

Krzysztof Woch

NBS Communications

tel. 22 826 74 18 / mobile 516 173 691

e-mail: kwoch@nbs.com.pl

Maciej Szczepaniak

NBS Communications

tel. 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 document containing information on the bond issue programme developed by BEST S.A. (the Company) and bonds issued within the programme will be the base prospectus which will be published on the Company's website (www.best.com.pl) after it has been approved by the Polish Financial Supervision Authority and the relevant final terms of bond issue which will also be published on the Company's website (www.best.com.pl). The bonds will not constitute a bank deposit and will not be covered by the deposit guarantee scheme.

BEST plans public issue of bonds od the value of up to PLN 200 million

As announced, the company will continue to obtain funding by issuing bonds, and has also decided to launch a new programme of debt securities issues. BEST intends to obtain up to PLN 200 million in this way.

 

The programme envisages the issue of bonds of a total nominal value not exceeding PLN 200 million in one or more series. The bonds will be offered by way of a public offer and will be introduced to trading on the regulated market operated by Giełda Papierów Wartościowych w Warszawie S.A.

"The success of this year's public issues was a clear sign for us that investors want to invest their money in this way, and that for them BEST is a credible and desired partner in this process. Therefore, we have started preparations for the next programme. We believe that despite increasing competition on the debt securities market, the issues planned by us will find their purchasers. We are one of the oldest entities on the corporate bonds market, and have no difficulties in repaying our liabilities on this account. For example, in the previous month, we repaid PLN 39 million," Krzysztof Borusowski, President of BEST, said.

In relation to the programme's implementation, the Company has prepared a prospectus which will be submitted to the Polish Financial Supervisory Authority along with a request for its approval. Issues of individual bond series issued under the programme will take place during the prospectus validity period.

In 2014, a programme of public issues of bonds to the value of PLN 300 million was launched. Individual investors also took part in it. Seven issues were conducted under the programme. The last issue was conducted in May this year. All issues were introduced to trading on the Catalyst market.

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BEST: Company Overview

BEST S.A. is a company that has been listed on the Warsaw Stock Exchange since 1997, specialising in the trading in and managing of non-performing debts. The BEST Group actively invests in debt portfolios (mainly bank portfolios) using securitisation funds; it also provides debt collection services on a commission basis to banks, telecoms, power sector companies and other providers of mass-market services.

BEST is also a shareholder of BEST TFI, which manages investment funds with total assets of PLN 984 million (as at 30 December 2015). With its combined expertise in debt collection and the creation and management of investment funds, BEST has been able to aggregate all components of the business model within a single capital group.

The total nominal value of own debt and debt of other entities managed by BEST is over PLN 10.6 billion (as at 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.

BEST has redeemed bonds with the value of PLN 39 million

The BEST Group has redeemed series G bonds with the value of PLN 39 million. It has been the biggest redemption of bonds to date.

"The bonds issued in November 2012 were the first such big series of financing acquired by BEST Group with the use of debt securities. They have become an important driving force for our development and growth of our activity. Four years ago, corporate bonds were reasonably popular, and BEST was in a totally different place than today. Therefore, we truly appreciate the investors who put faith in us at that time”.saidKrzysztof Borusowski, President of BEST.

Series G bonds were offered by Noble Securities SA as part of the public offering which did not require drawing up a prospectus as it was addressed exclusively to investors acquiring securities for the amount not lower than PLN 210 thousand. Series G bonds were 3.5-year bonds, maturing at the end of May 2016. As a result, this is the biggest issue redeemed by BEST Group. The next such big redemption will take place in the second quarter of 2018. The closest redemption will take place in the third quarter of this year and the Group will allocate PLN 17 million for this purpose.

In total, since 2010, the Company and funds managed by BEST TFI have carried out issues with the nominal value of about PLN 671 million. So far, bonds with a value of about PLN 304 million have been redeemed, often before their maturity. Initially, the issues were addressed first and foremost to institutional investors. In 2014, a programme of public issues of bonds with the value of PLN 300 million was launched, in which individual investors took part as well. Seven issues took place under the programme. The last issue was conducted in May this year. The majority of the bonds issued were introduced into trading on Catalyst.

***

General information about BEST

BEST S.A. is a company listed on the Warsaw Stock Exchange since 1997, specialising in trading in and managing of non-performing debt. BEST Group actively invests in debt portfolios (mainly bank portfolios) using securitisation funds; it also provides debt collection services on a commission basis: to banks, telecoms, power sector companies and other providers of mass-market services.

BEST is also the only shareholder of BEST TFI, which manages investment funds with the total assets of PLN 984 million (as at 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 elements of the business model within one capital group.

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

 

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More information:

Mariusz Ilnicki

+48 668 48 36 73

mariusz.ilnicki@best.com.pl

Mirosław Gronicki and Andrzej Klesyk join the Supervisory Board of BEST S.A.

Mirosław Gronicki, former Minister of Finance, and Andrzej Klesyk, former President of PZU have become members of the Supervisory Board of BEST S.A. by way of a resolution adopted on 18 May by the General Assembly of Shareholders.

 

“The experience of Mirosław Gronicki and Andrzej Klesyk in financial markets cannot be overrated. I am glad that we will be able to take advantage of the support and knowledge of experienced managers in the course of the currently observed dynamic expansion of our operations”,said Krzysztof Borusowski, President and majority shareholder of BEST.

 

Mirosław Gronicki was Minster of Finance in the years 2004-2005, in the government of Marek Belka. In the years 2000-2003, he was Chief economist of Millenium bank, and also worked as an advisor in Goldman Sachs investment bank. He advised the governments of Bulgaria, Turkmenistan and Slovakia. He worked for the Market Economy Research Institute (IBnGR) and Social and Economic Analyses Centre (CASE), where he supervised research programs regarding macro-economic analyses and economic projections for Poland, Ukraine, Georgia and Kyrgyzstan. Mirosław Gronicki graduated from the Faculty of Economy at the University of Gdańsk. He has worked for renowned scientific institutions, i.a. the University of Pennsylvania in Philadelphia, Charles University in Prague, and international organisations, such as the World Bank, UN and European Union.

Andrzej Klesyk was the President of PZU Management Board in the years 2007-2015. Previously, he worked at the Ministry of Ownership Transformations. Co-founder of Handlobank and Bank Inteligo, which is his original project. In the years 1993-2000, he worked for the consulting company McKinsey & Company in London, thereafter, for four years he was a partner at the Boston Consulting Group with its seat in Warsaw. He was Member of the Economy Council at the Council of Ministers (2010-2012). He graduated from the Catholic University of Lublin, and has an MBA title from the Harvard Business School.

The newly appointed members have replaced Katarzyna Borusowska and Patrycja Kucner in the Supervisory Board. BEST S.A. Supervisory Board has seven members - six of them meet the criteria of independence referred to in the Best Practices of WSE Listed Companies.

“We thank the previous Members of the Supervisory Board for their many years’ work and their contribution to company expansion and competent supervision over continuous improvement and observance of the highest standards of operations” added Krzysztof Borusowski.

This is not the only recent change in BEST. On 9 May 2016, the Supervisory Board appointed Jacek Zawadzki, with 20 years of experience in IT, to the Management Board. He shall take up his position on 1 July 2016.

 

 

 

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General information about BEST

 

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 (mainly bank portfolios) using securitisation funds; it also provides debt collection services on a commission basis: to banks, telecoms, power sector companies and other providers of mass-market services.

 

BEST is also a shareholder of BEST TFI, which manages investment funds with total assets of PLN 984 million (as at 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 elements of the business model within one capital group.

 

The total nominal value of own debt and debt of other entities managed by BEST is over PLN 10.6 billion (as at 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.

 

More information:

Mariusz Ilnicki

+48 668 48 36 73

mariusz.ilnicki@best.com.pl

A good start to the year for the BEST Group with a 146% increase in Q1 profit

In Q1 2016, the BEST Group achieved record results with a net profit of 34.3 million PLN and revenues of 65.5 million PLN. This is, respectively, an increase of 146% and 68% over the previous year. Debt repayment figures, which are of key importance for the Group, have considerably improved as well, increasing by 28% to reach 40.9 million PLN.

 

Q1 of this year was by far the best in the Group's history. Two- and three-digit growth dynamics were recorded by key indicators: revenue, profit, debt repaid and investments in the purchase of new debt portfolios.

 

"We are constantly developing and expanding our operations. We are most happy about the fact that the huge dynamics from the last three months of 2015 still continue this year. This proves that our investments in our IT system and the changes in the strategy of amicable debt collection are starting to deliver some tangible results. I am convinced that the upcoming months will also abound in good news for the Group," said Krzysztof Borusowski, President of BEST.

 

In Q1, the repayments of debt portfolios benefitting the BEST Group totalled 40.9 million PLN, which was 28% more than in the same period of the previous year. The dynamic growth in this area began at the end of last year, and Q4 was the best in the entire year for 2015. One of the reasons for the significant improvement in the growth rate is the partial implementation of a new IT system, which has facilitated the debt management process. The system, whose development has already cost 7 million PLN, will become fully operational in H2 2016.

The Group is consistently heading towards a planned increase in investments. Once it had doubled its outlays on the purchase of debt portfolios last year, in Q1 2016, the Group purchased portfolios with a nominal value of 321.7 million PLN for 44.7 million PLN – this is more than half the funds allocated for that purpose throughout the whole of 2015, when spending amounted to 85.9 million PLN (with a nominal value of the portfolios purchased of 897 million PLN). Investments in debt portfolios are treated as an organic path for the Group's development. Such a large scale investment is also possible because of the BEST programme of public bond issues, which brought in 300 million PLN over 2 years.

Already in 2016, the company has managed to place programme bonds worth 90 million PLN. In February and April, as part of two public issues addressed to retail investors, more than 2000 investors acquired the company's bonds. In fact, on two occasions the company had to close the lists after two days due to significant oversubscription.

 

"The bond programme is one of the most important incentives for the Group's development, which proved very helpful in increasing the scale of operations. Investors' interest in the two issues we have made this year was so high that we had to apply reductions of 64% and 50%, which is, in turn, tangible proof of their trust in our debt securities as an interesting and safe investment. On the other hand, for us, bonds make an attractive source of funding, which is why we will return to the market with another bond programme in H2," said Krzysztof Borusowski.

 

Despite the large investments, the Group maintains a low debt ratio. This is possible thanks to a systematic increase in equity. In Q1 2016 it was increased by one fourth, to 354 million PLN, which was not only related to the retained earnings but also the issue of shares. In March, the main shareholders increased the company’s capital by 36.5 million PLN. The new issue of shares were taken for 26.78 PLN, which accounts for the valuation of 600 million PLN, almost twice that of the current company share price on the Warsaw Stock Exchange.

 

 

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BEST Company Overview

 

BEST S.A. is a company listed on the Warsaw Stock Exchange since 1997. It specialises in trading in and management of non-performing debt. The BEST Group actively invests in debt portfolios (mainly bank portfolios) using securitisation funds; it also provides debt collection services on a commission basis: to banks, telecoms, power sector companies and other providers of mass-market services.

 

BEST is also a shareholder of BEST TFI, which manages investment funds with total assets of 984 million PLN (as at 30 December 2015). With its combined expertise in debt collection and the creation and management of investment funds, BEST has been able to aggregate all the components of its business model within one capital group.

 

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

 

For more information:

Mariusz Ilnicki

+48 668 48 36 73

mariusz.ilnicki@best.com.pl

BEST S.A. once again sells its bonds in a single day

As early as on the first day of subscriptions, BEST S.A. found investors willing to buy the offered pool of bonds with a value of PLN 50 million.As a result, the subscription period has been shortened, and all the subscriptions will be reduced proportionately.

 

As a result of a strong interest among investors, the subscriptions will end today, on 13 April, and not on 22 April as was originally planned.According to the final issue terms for L3 series bonds, all subscriptions will be reduced proportionately. The reduction rate will be published next week.

 

‘Investors have once again bought our bonds instantaneously, which is the best proof that they trust the company and believe in its future and further growth.For us, this is a very positive sign, which shows that we can take into consideration subsequent bond issues as a form of financing when planning our further development’, said Krzysztof Borusowski, President of BEST S.A.

BEST S.A. has offered to retail investors bonds with a total nominal value of PLN 50 million.These are 4-year bonds with a variable interest rate equivalent to WIBOR 3M increased by a margin of 3.5% (which is equivalent to 5.2% per annum in the first interest period).Interest will be paid to investors every three months.The company is going to apply for admitting the bonds to trading on Catalyst.

All the information on the current issue of the bonds is available at:

http://best.com.pl/publiczna-oferta,117,pl.html

***

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 and power companies, and other mass service providers.

 

BEST is also the sole shareholder of BEST TFI, which manages investment funds with total assets of over 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 elements of the business model within one capital group.

 

The total nominal value of own debt and 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.

 

 

More information:

Mariusz Ilnicki

+48 668 48 36 73

mariusz.ilnicki@best.com.pl

Subscriptions launched for BEST bonds with a value of PLN 50 million

From today to 22 April you can subscribe for BEST bonds. However, those interested should not delay their subscriptions, as the company is offering a discount – the sooner you subscribe, the lower the price you will pay.

 

The 4-year BEST bonds with a total value of PLN 50 million are addressed to retail investors. The company is offering bonds with a variable interest rate equal to WIBOR 3M increased by a margin of 3.5%.This means a profit of almost 5.2% in the first interest period.

The subscription for L3 series bonds is conducted by the Brokerage House of mBank and the Brokerage House of PKO Bank Polski, but it is enough to hold an investment account in any brokerage house. Investors can choose from the total of 49 facilities located across the country. Subscriptions can also be placed online and by phone.

 

Similarly to previous offerings, the bonds are offered with a discount, the value of which depends on the date of subscription. The sooner an investor subscribes, the lower the price they will pay. Moreover, in the event of reducing subscriptions, the investors who were the first to subscribe will receive the full pool.

BEST is offering to retail investors 500,000 bonds with a nominal value of 100 PLN each. PLN 100 is enough to subscribe. Interest will be paid to investors every three months, and the Company expects the bonds to debut on Catalyst on 23 May.

All the information on the current issue of the bonds is available at:

http://best.com.pl/publiczna-oferta,117,pl.html

***

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 and power companies, and other mass service providers.

 

BEST is also the sole shareholder of BEST TFI, which manages investment funds with total assets of over 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 elements of the business model within one capital group.

 

The total nominal value of own debt and 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 or be covered by the deposit guarantee scheme.

 

More information:

Mariusz Ilnicki

+48 668 48 36 73

mariusz.ilnicki@best.com.pl

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

BEST increases its capital by PLN 36.5 M and reduces its net debt ratio

The main shareholders of BEST S.A. have increased the company’s capital by PLN 36.5 M. The new share issue price reached PLN 26.78, which is almost twice as much as the current company share price on the Warsaw Stock Exchange.

 

BEST S.A. has issued 1.36 M of new class D shares with a par value of PLN 1 each and issue price of PLN 26.78 per share.New shares have been taken up by the largest shareholders: Krzysztof Borusowski and Marek Kucner, who are also the President and the Vice-President of the management board respectively. As a result of the new issue, BEST Group’s share capital calculated as at the end of 2015 inclusive of the new issue is PLN 320 M, which is 60% more than at the end of 2014.The capital increase was recorded on 30 March 2016.

“The issue of new shares means the whole Company is worth PLN 600 M.  We believe that such a price well reflects the development potential of BEST S.A. As the main shareholders of BEST S.A., we consistently develop and wish to keep developing the company. Increasing the share capital of BEST S.A. is among the actions taken with a view to further market expansion, in particular for the purchase of new credit portfolios,” explains Krzysztof Borusowski, CEO and main shareholder of BEST S.A.

 

Increasing the company’s share capital, due to the funds obtained from the issue of class D shares, will reduce the debt ratios of the company and the whole BEST group.  At the end of 2015, the net debt to equity ratio was 1.26. After re-calculation, the lower ratio should result in better terms for bond issues, the bonds being among the main sources for financing the development and reinforcement of the company's market position. BEST S.A. is planning to end the two-year issue programme worth PLN 300 M before June.So far debt securities of PLN 250 M have been subject to placement.

***

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

 

For more information:

Mariusz Ilnicki
+48 668 48 36 73
mariusz.ilnicki@best.com.pl

More than PLN 82 million profit of BEST Capital Group in 2015

Increase in revenue by one third and increase in net profit by 39%, recorded by BEST Capital Group in 2015, is a continuation of the positive growth trend from the previous years. Revenue in the key receivables repayment sector has increased significantly, whereas the value of receivables in its portfolio has already exceeded PLN 10.6 billion.

BEST Group has closed yet another financial year with an increase in key indicators. Revenue and net profit both recorded a double-digit increase. The Group has spent more than 100% than in 2014 for the purchase of new receivable portfolios, which allows for a dynamic development of the Group. Net profit of BEST Group achieved PLN 82.2 million and was higher by 39% than in the previous year, when it achieved PLN 59.2 million. Revenue from operating activities increased by one third from PLN 106.2 million to PLN 140.9 million.

'It was a very successful year for us. The most important indicators achieved record levels. A large growth in the receivables repayment area, and in particular its dynamic increase in the last quarter, is cause for satisfaction. Repayments allocated to funds owned by BEST increased by 35% to reach PLN 40.6 million. Additionally, at the end of the year we introduced new operational solutions which allow us to expect further growth in the coming quarters', said Krzysztof Borusowski, President of the Board of BEST.

In the whole year, the  repayment of receivables brought the Group PLN 138.6 million. Its dynamic growth results from the development of amicable collection, as well as investments in a modern management system. Since the beginning of 2013, the construction of a modern SIGMA system supporting receivables management, which is just about to finish, has consumed about PLN 7 million. Full implementation of this project will allow for even more efficient management of receivables repayment and further increase in revenue in this key area.

In the whole of 2015, BEST Group purchased 15 debt packets with a total nominal value of over PLN 897 million, spending over PLN 85 million on their purchase. This is 110% more than in the previous year. Moreover, for PLN 171 million the Group acquired 33% of shares in Kredyt Inkaso S.A. Despite these investments, the debt ratio remains relatively low; at the end of 2015 the debt to own capital ratio was 1.26. After accomplishing the capital increase, the recalculated ratio will drop to about 1.0. An increase in the Group's own capital, thanks to financial resources obtained from issuing shares for major issuers, will improve the debt ratio and translate into even more attractive conditions for issuing bonds.

Bond issues are a basic source of revenue and financing development. In 2015, PLN 153.8 million have been sourced in this way. The bond placement programme  will be continued with success in 2016; in February as part of the third public offering programme addressed to retail investors the Group sold bonds of nominal value of PLN 40 million. In two days, more than 1000 investors reported demand for bonds worth PLN 112 million.

The previous year was also very successful from the point of view of the Group's presence on the Warsaw Stock Exchange. Our shares completed their eighteenth year on the Warsaw Stock Exchange with an almost 100% increase, whereas main indexes were negative. During this period, WIG 20 lost 19.7% and WIG lost 9.6%.

 

'An increase in the Company's value is always good news for all investors. As major shareholders, we are currently increasing our engagement by acquiring new issue shares for a price of PLN 26.78, as resulting from a valuation made by PwC. This level is almost twice the current price on the Warsaw Stock Exchange which, in our opinion, mirrors a significant investment potential. At this price BEST capitalization would have yielded almost PLN 600 million', says Marek Kucner, Vice-President of the Board.

***

General information about BEST

 

BEST S.A. is a company that has been listed on the Warsaw Stock Exchange since 1997. It specialises in the trading and management of non-performing debts. The BEST Group actively invests in debt portfolios (primarily in bank debt portfolios) with the use of securitisation funds and provides debt collection services on commission – for banks, telecommunication operators, power companies, and other mass service providers.

 

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

For more information:

Mariusz Ilnicki

+48 668 48 36 73

mariusz.ilnicki@best.com.pl

BEST L2 series bonds go to over 1000 investors

On Tuesday, 9 February, BEST allotted its L2 series bonds. BEST moved the deadline forward for allotting bonds, from 19 February to 9 February, due to the faster completion of requests than had originally been planned. The exceeding of the number of offered bonds took place on the first day of the subscription.

 

  •          The subscriptions ended on 5 February rather than on the 17 February originally planned.
  •          The average reduction rate was 64.31%.
  •          The L2 series bonds were allotted to the portfolios of over 1008 investors.

As part of the third public offering programme addressed to retail investors, BEST offered 400,000 bonds of a nominal value of PLN 100 each, totalling PLN 40 million. The subscriptions were accepted between February 4 and 5. As the requests for bonds exceeded the total number available on the first day of subscription (4 February), in accordance with the terms and conditions of Bond issue, the subscription period was shortened and the subscriptions made on that day and the following day were reduced pro rata. Correct subscriptions were placed by 1013 investors, who were ready to purchase bonds worth PLN 112 million. Finally the bonds were allocated to 1008 investors. The average reduction rate was 64.31%.

The L2 series bonds are 4-year bonds bearing variable interest equivalent to 3M WIBOR increased by a 3.8% annual margin. Interest will be paid to investors every 3 months.

"Our aim is to ensure financing of the Company on the best terms and conditions possible, while at the same time making an attractive offer for the investors. In setting the issue parameters of the L2 series bonds we took into consideration the investors' expectations, as well as events taking place on the financial markets regarding, for example, the Polish rating. We are glad that BEST L2 series bonds have gained so much trust. We see it as proof of the investors' trust in our company and our development plans, as well as being confirmation that there is demand for corporate bonds offered by reliable issuers in the capital market," said Krzysztof Borusowski, president of BEST.

As part of the issue programme of bonds totalling PLN 300 million, so far BEST has issued a total value of PLN 250 million. The company is planning to conduct more bond issues and thereby carry out the entire programme.

 

"Such a large demand for our bonds expressed by individual investors is a good forecast for our future planned issues. Under the current bond issue programme we still wish to issue bonds totalling a further PLN 50 million, and hence fully execute our programme amounting to PLN 300 million," Krzysztof Borusowski added.

Similarly to all previous series issued under the public programme, the L2 bonds shall be listed by Catalyst. BEST expects the L2 series bonds to debut on Catalyst on 18 March.

***

General information about BEST

BEST S.A. is a company that has been listed on the Warsaw Stock Exchange since 1997. It specialises in the trading and management of non-performing debts. The BEST Group actively invests in debt portfolios (primarily in bank debt portfolios) with the use of securitisation funds and provides debt collection services on commission – for banks, telecommunication operators, power companies, and other mass service providers.

BEST is also the sole shareholder of BEST TFI, which manages investment funds with assets totalling PLN 984 million (as of 30 December 2015). The combination of expertise in the field of debt collection and in the establishment and management of investment funds has made it possible 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 exceeds PLN 10 billion (as of 30 September 2015).

In 2014, the BEST Group generated a net profit of PLN 58.9 million attributable to the Company's shareholders, with operating revenues of PLN 124 million.

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

Krzysztof Woch

NBS Communications

tel. 22 826 74 18 / mobile 516 173 691

e-mail: kwoch@nbs.com.pl

Maciej Szczepaniak

NBS Communications

tel. 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 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 updates to the Base Prospectus, and the Final Terms of the Bond Issue. The Base Prospectus, addenda and 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 and will not be covered by the deposit guarantee scheme.

President of BEST S.A. about situation on market offering of bonds and plans [ interview ]

 Serdecznie zachęcamy do obejrzenia wywiadu z Prezesem BEST Krzysztofem Borusowskim dla portali StrefaInwestorów.pl oraz Obligacje.pl. Tematem rozmowy są plany Grupy BEST związane z trwającą publiczną ofertą obligacji. 

Wywiad opublikowany w serwisie Obligacje.pl  

Wywiad opublikowany na portalu StrefaInwestorów.pl

All BEST bonds find buyers already on the first subscription day

The demand for BEST L2 series bonds exceeded the number of debt securities offered as early as on the first subscription day. Accordingly, the subscription period has been shortened and subscriptions placed on 4 and 5 February will be reduced proportionately.

 

Subscriptions for L2 series bonds, offered as part of public offering addressed to retail investors, started on Thursday, 4 February. On the same day, the total number of bonds for which the investors had placed subscriptions exceeded the offered pool (on 4 February, i.e. the Oversubscription Day). Accordingly, the subscription period has been shortened. The subscription end date, originally set for 17 February, has been moved to 5 February 2016.

In accordance with the Final Terms of the issue of L2 series bonds, subscriptions placed on the Oversubscription Day and on the last day of the subscription period, i.e. on 4 and 5 February, will be reduced proportionately.

"We are very happy to see that all retail bonds in our offer found their owners as early as on the first subscription day. In our view this proves that investors trust our company and put confidence in the development strategy consistently implemented by BEST Group. According to our announcements, we plan to complete the public issue programme for bonds with the total value of up to PLN 300 million launched in 2014. As part of the programme, we will be able to offer additional bonds with a value of up to PLN 50 million. The success of the current issue enables us to look at these plans with optimism", saysKrzysztof Borusowski, President of BEST.

As part of the current offering, BEST has offered retail investors bonds with a total nominal value of PLN 40 million. These are 4-year bonds bearing variable interest equivalent to 3M WIBOR increased by 3.8% margin (which constitutes 5.5% per year in the first interest period). Interest will be paid to investors every 3 months.

For the purposes of the issue of L2 series bonds, a new consortium of brokerage houses has been established. Subscriptions are placed to the mBank Brokerage Hose (Offering) and the Brokerage House of PKO Bank Polski (Member of the Consortium).

The offer of L2 series bonds is the sixth issue conducted by BEST under the public issue programme for bonds with a total nominal value of up to PLN 300 million. As part of this programme, the company has already conducted two issues with a total nominal value of PLN 210 million, including three series with a total value of PLN 130 million addressed to retail investors. All the bonds issued under the programme are listed by Catalyst.

***

General information about BEST

BEST S.A. is a company that has been listed on the Warsaw Stock Exchange since 1997. It specialises in the trading and management of non-performing debts. The BEST Group actively invests in debt portfolios (primarily in bank debt portfolios) with the use of securitisation funds and provides debt collection services on commission – for banks, telecommunication operators, power companies, and other mass service providers.

BEST is also the sole shareholder of BEST TFI, which manages investment funds with assets totalling PLN 984 million (as of 30 December 2015). The combination of expertise in the field of debt collection and in the establishment and management of investment funds has made it possible 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 billion (as of 30 September 2015).

In 2014, the BEST Group generated a net profit of PLN 58.9 million attributable to the Company's shareholders, with operating revenues of PLN 124 million.

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

Krzysztof Woch

NBS Communications

tel. 22 826 74 18 / mobile 516 173 691

e-mail: kwoch@nbs.com.pl

Maciej Szczepaniak

NBS Communications

tel. 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 press release is for promotional purposes only. The only legal sources of information on 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, addenda and updates to the Base Prospectus, and the Final Terms of the Bond Issue. The Base Prospectus, addenda and 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 and will not be covered by the deposit guarantee scheme.

Registration for bonds have been started

From today, you can subscribe for the bonds BEST series L2 a total value of 40 million PLN.

BEST launches the retail bond offer worth PLN 40 million

This Thursday will the mark the launch of the offer of 4-year bonds of BEST with a total value of PLN 40 million, addressed to retail investors. In addition to mBank's Brokerage House, bond subscriptions will also be accepted by the Brokerage House of PKO Bank Polski. The consortium will enable the investors to choose from 47 facilities located across the country. Subscriptions can also be placed online and by phone.

"According to our strategy, we are gradually increasing the scale of operations, investing in receivables portfolios, both directly and indirectly, on the secondary market. This year we also intend to be more active on the debt trading market. This is why we are launching a new offer of bonds within our bond issue programme, which has been in progress since 2014" said Krzysztof Borusowski, CEO of BEST.

"This will be our fourth issue addressed to retail investors. In response to the signals we receive from investors, we wish to make it easier to subscribe to the bonds we have on offer. For that purpose, we have created a consortium to make it possible to purchase BEST'S bonds through the distribution networks of the Brokerage House of mBank and the Brokerage House of PKO Bank Polski, that is two leading brokerage houses on the Polish market. We expect the attractive terms and greater availability of the bonds to attract considerable interest of investors," Krzysztof Borusowski added.

4-year bonds with variable interest

According to the final issue terms for class L2 bonds, BEST will offer retail investors 400,000 bonds of par value PLN 100 each. Consequently, the total par value of the issue may amount to PLN 40 million.

Class L2 bonds are 4-year bonds. They will bear interest at a variable rate, equalling WIBOR 3M plus an annual margin of 3.8%. Interest will be paid to investors every 3 months.

BEST expects class L2 bonds to debut on Catalyst on 18 March this year.


 

Issue price with a discount

The issue price of class L2 bonds will include a discount in respect of the par value, the value of the discount depending on the day of subscription. The earlier an investor subscribes, the lower the price they will pay. This mechanism has been successfully used with the previous issue of BEST'S bonds addressed to retail investors (class K3). Moreover, the interest is accrued on the bonds as of 19 February 2016, i.e. as of the allotment date. These solutions completely eliminate the consequences of a non-interest period, i.e. the period between the subscription and the issue date.

Subscription date

Issue price of class L2 bonds (PLN)

4 February 2016

99.77

5 February 2016

99.79

6 February 2016

99.80

7 February 2016

99.82

8 February 2016

99.83

9 February 2016

99.85

10 February 2016

99.86

11 February 2016

99.88

12 February 2016

99.89

13 February 2016

99.91

14 February 2016

99.92

15 February 2016

99.94

16 February 2016

99.95

17 February 2016

99.97

 

Bonds easily available across the country

Subscriptions to class L2 bonds will be accepted from 4 to 17 February this year. As promised, a consortium of brokerage houses has been created for the issue of class L2 bonds to make it easier for investors nationwide to participate in the offering. It will be possible to acquire BEST'S bonds through the distribution networks of the Brokerage House of mBank (Offerer) and the Brokerage House of PKO Bank Polski (consortium member). Thus, the bonds will be available from 47 customer service points across the country. Investors can also subscribe via remote access channels, i.e. by phone or online.

Investors with an account in any brokerage house can also participate in the bonds offering.

To receive more information about subscriptions and the list of customer service points of the Brokerage House of mBank and the Brokerage House of PKO Bank Polski, visit www.mdm.pl and www.dm.pkobp.pl respectively, as well as www.best.com.pl.

The order of subscriptions matters

The subscription date will be taken into consideration not only while establishing the issue price to be paid by an investor for class L2 bonds. Bonds will also be allotted based on the order of subscriptions. This will be relevant in a situation where investors subscribe to a greater number of bonds than the offered pool. In this case, some subscriptions will be reduced.

The key date here will be the day on which the number of the bonds subscribed to exceeds the offered pool (Oversubscription Day). Investors who place their subscriptions before that day will be allotted the bonds in accordance with their subscriptions. 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.

Schedule for the public offering of BEST'S class L2 bonds:

 

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

4 February 2016

Subscription End Date:

17 February 2016

Allotment date:

19 February 2016

Anticipated Issue Date:

4 March 2016

Anticipated date for public announcement of the Offering results:

as of 19 February 2016

Anticipated date of the Bonds being admitted to trading:

18 March 2016

 

The public offering of class L2 bonds is the sixth issue conducted by BEST under the public issue programme for bonds of a total par value of up to PLN 300 million. Within this program, the Company has hitherto conducted two issues of a total par value of PLN 210 million, where three classes for a total of PLN 130 million were addressed to retail investors. All the bonds issued under the programme are listed by Catalyst.

***

General information about BEST

BEST S.A. is a company that has been listed on the Warsaw Stock Exchange since 1997. It specialises in the trading and management of non-performing debts. The BEST Group actively invests in receivables portfolios (primarily in bank receivables portfolios) with the use of securitisation funds and provides debt collection services on commission – for banks, telecommunication operators, power companies, and other mass service providers.

BEST is also the sole shareholder of BEST TFI, which manages investment funds with assets totalling PLN 984 million (as of 30 December 2015). The combination of expertise in the field of debt collection and in establishment and management of investment funds has made it possible 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 billion (as at 30 September 2015).

In 2014, the BEST Group generated a net profit of PLN 58.9 million attributable to the Company's shareholders, with operating revenues of PLN 124 million.

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

Krzysztof Woch

NBS Communications

tel. 22 826 74 18 / mobile 516 173 691

e-mail: kwoch@nbs.com.pl

Maciej Szczepaniak

NBS Communications

tel. 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 press release is for promotional purposes only. The only legal sources of information on 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, addenda and updates to the Base Prospectus, and the Final Terms of Bond Issue. The Base Prospectus, addenda and 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 and will not be covered by the deposit guarantee scheme.

New issue of BEST retail bonds to come soon

BEST plans to launch a new offering of bonds for individual investors in the nearest future. The company is working to establish a consortium of brokerage houses to make subscriptions easier for investors from across the country.

"In the weeks to come, we plan to conduct a new offering of bonds as part of the public bond issue programme. This offering will be addressed to retail investors," announcesKrzysztof Borusowski, President of BEST. "This new issue will be conducted together with the mBank Brokerage House, our long-term partner. At the same time, in order to make access to bonds on offer easier for interested investors, we are working to establish a consortium so that new securities can be purchased in our branches all over the country," addsthe President.

As part of the programme with a total value of up to PLN 300 million, the company has so far issued five series of bonds with a total nominal value of PLN 210 million, including three series with a total value of PLN 130 million addressed to retail investors. All the bonds issued under the programme are listed by Catalyst.

Bonds are the main source of financing the development of the BEST Group. In 2015, the BEST Group purchased debt portfolios with a total nominal value of PLN 897 million, spending over PLN 85 million. This constitutes an increase by 44% and 53% respectively in comparison with 2014. The BEST Group also incurred expenditures related to the indirect purchase of debt portfolios (in the secondary market) through the purchase of almost 33% shares of Kredyt Inkaso. The total investment expenditures related to the direct and indirect purchases of debt portfolios in 2015 exceeded PLN 238 million as compared to approximately PLN 147 million in the previous year.

"We predict that 2016 will see further development of the debt market in Poland. We expect that the supply of bank debt portfolios will be at least at the same level as in 2015, when, according to our estimates, its nominal value amounted to about PLN 16 billion. I think that portfolios of higher quality may be placed on the market. We can also expect an increase in the value of mortgage portfolios put for sale. Their share in the whole debt market can be estimated at about one quarter," indicates Krzysztof Borusowski.

What may be another factor increasing the supply of debt portfolios is the so-called bank tax, in force from February. The tax may encourage banks to organise their assets and encourage decisions to sell portfolios of non-performing loans.

"The year of 2016 may be another year in which the debt collection market in Poland undergoes consolidation. We are still intent on merging with Kredyt Inkaso. It is possible that other smaller companies will attract the attention of large international players. It should be emphasised at the same time that the development of the debt collection market clearly indicates that, apart from access to capital, it is experience and knowledge of the local market that play a key role in our sector. Moreover, success is also determined by access to transactions and effective operations. We have managed to concentrate all these elements within the BEST Group. In addition, this year we are completing the implementation of an ultramodern IT system, thanks to which the effectiveness of our operations is bound to rise," summarises the President of BEST.

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General information about BEST

BEST S.A. is a company that has been listed on the Warsaw Stock Exchange since 1997. It specialises in the trading and management of non-performing debts. The BEST Group actively invests in debt portfolios (primarily in bank debt portfolios) with the use of securitisation funds and provides debt collection services on commission – for banks, telecommunication operators, power companies, and other mass service providers.

BEST is also the sole shareholder of BEST TFI, which manages investment funds with assets totalling PLN 984 million (as of 30 December 2015). The combination of expertise in the field of debt collection and in the establishment and management of investment funds has made it possible 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 exceeds PLN 10 billion (as of 30 September 2015).

In 2014, the BEST Group generated a net profit of PLN 58.9 million attributable to the Company's shareholders, with operating revenues of PLN 124 million.

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

Krzysztof Woch

NBS Communications

tel. 22 826 74 18 / mobile 516 173 691

e-mail: kwoch@nbs.com.pl

Maciej Szczepaniak

NBS Communications

tel. 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 press release is for promotional purposes only. The only legal sources of information on 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, addenda and updates to the Base Prospectus, and the Final Terms of the Bond Issue. The Base Prospectus, addenda and 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 and will not be covered by the deposit guarantee scheme.

BEST publishes its company valuation related to the planned merger with Kredyt Inkaso

In order to ensure that our investors have access to the information they need, the Management Board of BEST has decided to make the document with an estimate of the Company's market value publicly available. The document has been prepared by PwC Polska, a renowned independent audit company, as part of preparations for the merger of BEST with Kredyt Inkaso.

"Following the previous announcements and the cooperation agreement concluded as part of preparations for the planned merger of BEST with Kredyt Inkaso, both companies commissioned PwC Polska, a renowned independent audit company, one of the Big Four, to prepare a valuation of each company, i.e. the valuation of BEST for the Management Board of BEST and the valuation of Kredyt Inkaso for the Management Board of Kredyt Inkaso", said Krzysztof Borusowski, CEO of BEST."We would like to ensure that our investors, particularly the shareholders of BEST and Kredyt Inkaso, have a full and accurate view of the situation. We take the equal access of investors to information really seriously. We are also aware of the potential cost-generating character of the prepared valuation, which is why we have decided to make it publicly available", added Krzysztof Borusowski.

The summary of the valuation prepared by PwC Polska is available on the following website of the Company: http://best.com.pl/wycena-spolki.

Please read carefully the disclaimer available at the foregoing address.

***

General information about BEST

BEST S.A. is a company that has been listed on the Warsaw Stock Exchange since 1997. It specialises in the trading and management of non-performing debts. The BEST Group actively invests in debt portfolios (primarily in bank debt portfolios) with the use of securitisation funds and provides debt collection services on commission – for banks, telecommunication operators, power companies, and other mass service providers.

BEST is also the sole shareholder of BEST TFI, which manages investment funds with assets totalling PLN 984 million (as of 30 December 2015). The combination of expertise in the field of debt collection and in the establishment and management of investment funds has made it possible 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 billion (as of 30 September 2015).

In 2014, the BEST Group generated a net profit of PLN 58.9 million attributable to the Company's shareholders, with operating revenues of PLN 124 million.

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

Krzysztof Woch

NBS Communications

tel. 22 826 74 18 / mobile 516 173 691

e-mail: kwoch@nbs.com.pl

Maciej Szczepaniak

NBS Communications

tel. 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