Ad-hoc | 15 July 2009 19:22
Raiffeisen International Bank-Holding AG / Corporate Action/Issue of Debt
Release of an Ad hoc announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Vienna, 15th July, 2009. Raiffeisen International Bank-Holding AG decided
to strengthen its core capital by EUR 1.25 billion today. The capital
increase will be carried out in the form of two issuances, of which one is
EUR 600 million in participation rights (Genussrechte), and the other EUR
650 million in hybrid Tier 1 capital. Both of these will be fully
subscribed by Raiffeisen Zentralbank Österreich AG.
The issuance of participation rights with equity characteristic will be
carried out based on the approval of the Annual General Meeting in June
2009 related to the issuance of participation rights and according to §
174 AktG under the exclusion of subscription rights of the shareholder.
Participation rights capital is perpetual (i.e. no fixed maturity),
carrying a call option (i.e. right to early redemption) of the issuer,
whereby there are economic arguments for the issuer for an early redemption
as the participation rights dividend would increase. The participation
rights dividend would amount to 10 percent p.a. in the first five years and
would thereafter progressively increase. The participation rights dividend
becomes payable at the same time as the dividend that is allocated to
Raiffeisen International shares. In the event that dividends are suspended,
there is no requirement to pay non-distributable participation right
dividends at a later date (non-cumulative). As is the case with the share
capital, the participation rights capital participates up to the full
nominal amount in an eventual corporate legal loss made by Raiffeisen
International.
Furthermore, the Board of Management of Raiffeisen International decided to
issue EUR 650 million in perpetual hybrid Tier 1 capital. The Tier 1
capital has no maturity date. The hybrid Tier 1 capital may be redeemed and
repaid by the issuer only after five years, and the coupon amounts to 10
percent p.a.
In the case of both issuances, the repayment is limited to the nominal
amount issued. The investor does therefore not participate in the value
growth of Raiffeisen International; hence there is no dilution of the
existing shareholders.
The calculated core capital (Tier 1) of Raiffeisen International according
to the Austrian banking regulations of the Austrian Banking Act (BWG) will
increase as a result of both measures taken, to a total from EUR 5,367
million to EUR 6,617 million (pro forma as of 31.03.2009). The Tier 1 ratio
(total) will improve from 7.7 percent to 9.5 percent (pro forma as of
31.03.2009) and the Tier 1 ratio (credit risk) will improve from 9.2
percent to 11.4 percent. The proceeds serve above all to further strengthen
the capital base of Raiffeisen International and its Network Banks.
The Semi-Annual Report will be published on the 13th August, 2009 at 7:30
am (CET).
For further information please contact:
Susanne Langer
Vice President Investor Relations
Raiffeisen International Bank-Holding AG
Am Stadtpark 3
A-1030 Vienna
investor.relations@ri.co.at
phone +43-1-71707-2089
http://www.ri.co.at
15.07.2009 Financial News transmitted by DGAP
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Language: English
Issuer: Raiffeisen International Bank-Holding AG
Am Stadtpark 3
A-1030 Vienna
Österreich
Phone: +43-1-71707-2089
Fax: +43-1-71707-2138
E-mail: investor.relations@ri.co.at
Internet:
ISIN: AT0000606306
WKN: A0D9SU
Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market in
Frankfurt; Foreign Exchange(s) Wien
End of News DGAP News-Service
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