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.
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:
tel. 22 826 74 18 / mobile 516 173 691
tel. 22 826 74 18 / mobile 514 985 845
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.