EANS-Adhoc: KA Finanz AG / Private Sector Involvement - Greece

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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
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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