EANS-Adhoc: KA Finanz AG
Private Sector Involvement - Greece
-------------------------------------------------------------------------------- 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. -------------------------------------------------------------------------------- KA Finanz AG / Private Sector Involvement - Greece 09.03.2012 KA Finanz AG / Private Sector Involvement - Greece Today the Republic of Greece published the result of the debt restructuring votes under the Public Sector Involvement (PSI) programme agreed with the Institute of International Finance (IIF) and published on 24 February 2012. KA Finanz AG (KF) has participated in the PSI programme with Greek government bonds of a nominal value of EUR 305 million. For KF, participation in the PSI programme results in an immediate charge of EUR 228.8 million for the business year 2011, of which EUR 163.2 million are realised losses from the 53.5% debt waiver. The remaining EUR 65.6 million are provisions for lower interest on the new bonds, which can again be added to net interest income over the life of the bonds, provided the positions remain in the portfolio. Besides Greek government bonds in the amount of EUR 305 million, KF as of 31 December 2011 holds - as already reported in the 2011 Interim Report - EUR 160 million of bonds of Greek state-owned corporations covered by guarantees of the Republic of Greece as well as EUR 522.8 million of CDS and CDS-type contracts. The Collective Action Clauses (CACs) introduced on 23 February 2012 allow the Republic of Greece to perform a compulsory swap of the instruments held by the non-approving minority, once a certain approval threshold is reached. Today the Republic of Greece announced its intention to activate the CACs. This has been taken note of by the Euro Group. At the time of publication (9 March 2012, 16:00 hrs.) the question of whether this will subsequently be implemented and result in a "credit event" triggering payments under CDS (credit default swap) is still open. For KF, activation of the CDS with an assumed loss ratio of about 80% would mean an additional provisioning charge of EUR 423.6 million. In the event of CDS activation through the CACs, the total amount of risk provisions for the Greek exposure will be in the range of EUR 1 billion. Upon conclusion of the current accounting process and after implementation of the necessary capital measures, the final result for the year will be published after its approval and adoption in April 2012. The owner has already agreed to take the necessary capital measures. Further information: German and English version http://www.kafinanz.at Language: German, English Issuer: KA Finanz AG Tuerkenstrasse 9 1092 Vienna Austria Phone: +43/1/310 06 06-678 E-mail: investorrelations@kafinanz.at Internet:www.kafinanz.at ISIN: XS0285503248, XS0252707624, XS0270579856, AT0000320890, XS0431077550, XS0422281252, AT0000329941, AT0000329768, XS0354530593, XS0354531211, XS0354530916, XS0286975973, XS0279423775, XS0257275098, AT0000441209, XS0185015541, XS0144772927, XS0140045302, XS0518439756, XS0494852717, XS0472796076 Stock exchanges: Vienna, Luxembourg Issuer: KA Finanz AG Further inquiry note: KA Finanz AG Treasury - Investor Relations Dinah Reiss 1092 Vienna, Tuerkenstrasse 9 Phone: +43/1/310 06 06-678 Fax: +43/1/310 06 06-404 E-mail: d.reiss@kafinanz.at end of announcement euro adhoc -------------------------------------------------------------------------------- issuer: KA Finanz AG Türkenstraße 9 A-1092 Wien phone: +43/1/310 06 06 FAX: +43/1/310 06 06 - 404 mail: info@kafinanz.at WWW: www.kafinanz.at sector: Banking ISIN: - indexes: stockmarkets: Regulated free trade: Wien, stock market: Luxembourg Stock Exchange language: English
Original content of: KA Finanz AG, transmitted by news aktuell