Österreichische Volksbanken-Aktiengesellschaft
EANS-Adhoc: Österreichische Volksbanken-Aktiengesellschaft
European Commission
approves state aid for Österreichische Volksbanken-AG and restructuring measures
-------------------------------------------------------------------------------- ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Company Information 19.09.2012 The European Commission has today (19 September 2012) approved the comprehensive restructuring plan developed by Österreichische Volksbanken-AG (VBAG) in the wake of the financial and economic crisis to restore long-term profitability. The approval encompasses measures that were introduced in 2009 as well as the support measures as agreed with the Republic of Austria in late April 2012 (write-down of participation capital held by the Republic by 70% plus a EUR 250 million recapitalisation). Under the newly-approved restructuring plan, the following measures have to be implemented by VBAG until 31 December 2017 (restructuring phase): - VBAG's total assets will be gradually reduced to EUR 18.39 billion (EUR 30.49 billion as at 30 June 2012) and risk-weighted assets (RWA) are to be gradually reduced to EUR 10.08 billion (EUR 15.54 billion as at 30 June 2012). - Core business will only include business areas that provide services to the regional Volksbanks (key focus: role as central institution of the association of Volksbanks and providing and distributing products and services to Volksbanks and their clients). Business areas that do not constitute core business are to be discontinued as stipulated in the restructuring plan. - Disposal of holdings in Raiffeisen Zentralbank and the following companies: o Volksbank Leasing International o Volksbank Malta o Investkredit International Bank, Malta o Volksbank Romania - Prohibition of dividend payments during the restructuring phase up to and including for the business year ending on 31 December 2017 (moratorium on dividend payments for shares, participation capital and participation capital certificates). - No payments on performance-related equity instruments (such as hybrid financial instruments and non-voting equity securities/Genussscheine) are allowed, unless contractually or legally required. Supplementary capital (upper tier II bonds) issued by VBAG and Investkredit are not affected by the moratorium. VBAG is also required to take all necessary measures to ensure that the Republic of Austria is fully relieved of its participation commitments until 31 December 2017 or immediately after that date. On 18 September 2012, the Austrian Financial Market Authority approved the new association of Volksbanks (Kreditinstitute-Verbund) pursuant to Section 30a of the Austrian Banking Act, which means that now all requirements for establishing the new association comprising the regional Volksbanks and VBAG as the central body are met. The measures concluded at the end of April and approved by the Annual General Meeting on 26 April 2012 are due to be entered in the commercial register and therefore take legal effect at the end of September. Those measures are: (i) Write-down of VBAG shares and participation capital by 70% and VBAG capital increase of EUR 484 million, subscribed by the Republic of Austria (EUR 250 million) and Volksbanks (EUR 234 million); (ii) Merger of Investkredit Bank AG with VBAG which is the acquiring company and sole legal successor. All measures will be applied retroactively, with effect from 31 December 2011. Stock exchange listed participation capital issued by Österreichische Volksbanken-Aktiengesellschaft ISIN: AT0000755665 Österreichische Volksbanken-AG Partizipationsscheine XS0359924643 EUR 500,000,000 Perpetual Non Cumulative Participation Capital Certificates (issued by Banque de Luxembourg in its function as trustee) The five largest listed issues of Österreichische Volksbanken-Aktiengesellschaft in terms of issue volume: ISIN: XS0417722393 AT000B053442 XS0275528627 AT000B061437 AT000B056544 The issues of Österreichische Volksbanken-Aktiengesellschaft are admitted on the following stock exchanges: Regulated market of the Vienna Stock Exchange Official trading of the Vienna Stock Exchange Regulated market of Baden-Württembergische Wertpapierbörse Regulated market of the Prague Stock Exchange RM-SYSTÉM Czech Stock Exchange Regulated market of the Luxembourg Stock Exchange Open Market of Berlin Stock Exchange Open Market of Stuttgart Stock Exchange Open Market of Frankfurt Stock Exchange The five largest listed issues of Investkredit Bank AG in terms of issue volume: ISIN: AT0000A0SNL2 AT0000A0SNJ6 AT0000A0SNG2 AT0000A0SNF4 AT0000A0SNH0 The issues of Investkredit Bank AG are admitted on the following stock exchanges: Second regulated market of the Vienna Stock Exchange Official trading of the Vienna Stock Exchange Regulated market of the Luxembourg Stock Exchange Open Market of Frankfurt Stock Exchange Hybrid capital issues of Österreichische Volksbanken-Aktiengesellschaft and Investkredit Bank AG: XS0201306288 EUR 250,000,000 Fixed/Floating Rate Non-cumulative Non-voting Preferred Securities DE0009576108 Investkredit Funding Ltd. Subordinated Noncumulative Limited Recourse Notes 2002 Further inquiry note: Walter Gröblinger Tel.: +43/ (0) 50 4004-0 E-Mail: walter.groeblinger@volksbank.com end of announcement euro adhoc -------------------------------------------------------------------------------- issuer: Österreichische Volksbanken-Aktiengesellschaft Kolingasse 19 A-1090 Wien phone: +43 0 50 4004-0 WWW: www.volksbank.com sector: Banking ISIN: AT0000755665 indexes: Standard Market Auction stockmarkets: Regulated free trade: Wien, stock market: Prague Stock Exchange language: English