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Erste Group successfully places Participation Capital with private and institutional investors

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Autor: Bancherul.ro
2009-05-03 10:25

During the Subscription and Offer Period from 15 to 29 April 2009 Participation Capital in a nominal amount of EUR 540 Mio has been subscribed for by private and institutional investors, said Erste Group in a press release.

Thus, Erste Group Bank AG's goal of placing Participation Capital in a nominal amount of at least EUR 400 Mio with private and institutional investors has been exceeded.

In accordance with the Agreement in Principle concluded with the Republic of Austria, the dividend on the Participation Capital
will amount to 8.0% per annum and Erste Group's distribution policy with regard to dividend payments on its ordinary shares will not be restricted in future business years.

The Republic of Austria has already subscribed for Participation Capital in a nominal amount of EUR 1.0 bn in March 2009 and will subscribe for additional Participation Capital in accordance with the Agreement in Principle.

The volume of the Participation Capital will in aggregate amount to approximately EUR 1.75 bn.

Subsequently, an amount of up to EUR 1 bn of Hybrid Capital is intended to be issued by Erste Bank der oesterreichischen Sparkasssen AG, a 100% subsidiary of Erste Group, to the Republic of Austria.

As previously announced, the aggregate volume of Participation and Hybrid Capital shall therefore amount to EUR 2.7 bn on a consolidated basis of Erste Group.

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