Source: http://en.immigon.com/investor-relations/news/ad-hoc-releases
Timestamp: 2019-04-19 20:55:18+00:00

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immigon portfolioabbau ag, Peregringasse 2, 1090 Vienna, FN 116476p ("immigon"), has been operating as a wind-down company pursuant to § 162 of the Austrian Act on Recovery and Resolution of Banks (BaSAG) since July 2015. The equity pursuant the financial statements (solo financial statements in accordance with local Austrian GAAP pursuant to the Austrian Commercial Code) of immigon which received an unqualified audit opinion today has, as a result of the positive results for 2018, increased by 15 percent to approx EUR 775 million.
Since immigon has completed the wind-down of its portfolio in accordance with applicable law and since immigon's liquid funds are sufficient in order to meet immigon's existing and excepted future liabilities, the managing board of immigon resolved today to notify the Financial Markets Authority (FMA) in its capacity as resolution authority of the accomplishment (completion) of the wind-down of its portfolio. The auditors of immigon have submitted their report pursuant to § 84 para 11 BaSAG on the independent review of the fulfilment of those prerequisites. If and as soon as the decision by the resolution authority will be available in which the resolution authority will declare that the operation of the wind-down company has ended, immigon will cease to be a wind-down company.
immigon plans to submit a proposal to the next annual shareholders' meeting of immigon (likely to be scheduled for 15 May 2019) to resolve on the dissolution and liquidation of immigon; such resolution shall be passed under the condition precedent that the resolution authority will declare by a formal decision the ending of the operation of the wind-down company. The supervisory board of immigon will propose to the shareholders' meeting that Ithuba Capital AG, which has been ranked first in a tender process, as liquidator. As planned, Mr. Stephan Koren and Mr. Michael Mendel will resign as members of the managing board at the time when the liquidation will start. Pursuant to immigon's current plans the liquidation of immigon will not be completed before the year 2028 and therefore the company will not be deleted from the companies' register before that date.
immigon portfolioabbau ag, Peregringasse 2, 1090 Vienna, FN 116476p ("immigon"), continues its wind-down process and has resolved today to make an application with Bourse de Luxembourg to withdraw the Perpetual Non Cumulative Participation Capital Certificates, ISIN XS0359924643 (the "Certificates"), from admission to trading at the Euro MTF of the Luxembourg Stock Exchange, on which the Certificates are at present admitted to trading (delisting). The Certificates are the only instruments of immigon still admitted to trading upon the application of immigon. immigon does not influence any listing of the Certificates applied for at German stock exchanges by third parties.
As a consequence of this decision (if approved by the Luxembourg Stock Exchange), immigon will no longer be obliged to disclose inside information. immigon expects that the delisting will become effective only three months after publication of the decision by the Luxembourg Stock Exchange on the latter's homepage.
immigon portfolioabbau ag, Peregringasse 2, 1090 Vienna, FN 116476p ("immigon"), continues its wind-down process and has resolved today to make an application with Bourse de Luxembourg to transfer the listing of the Perpetual Non Cumulative Participation Capital Certificates, ISIN XS0359924643 (the "Certificates"), from the regulated market to the Euro MTF of the Luxembourg Stock Exchange. The Certificates are the only instruments of immigon still listed on a (regulated) market. immigon does not influence the listings of the Certificates applied for at German stock exchanges or at the Vienna Stock Exchange by third parties.
As a consequence of this decision, immigon will no longer be obliged to draw up consolidated financial statements in accordance with IFRS or to draw up and publish a half year report.
In its ad hoc announcement of 9 January 2018, immigon portfolioabbau ag, Vienna ("immigon"), published the intention to terminate by mutual consent and to redeem at par two supplementary capital issues with no maturity which its subsidiaries ÖVAG Finance (Jersey) Limited and Investkredit Funding Ltd, 13 Castle Street, St Helier, JE4 5UT, Channel Islands ("IK Funding") subscribed from the proceeds of their respective hybrid capital issues and still hold in order to allow that the securities issued by ÖVAG Finance and IK Funding (Subordinated non-cumulative Limited Recourse Notes, DE0009576108) be terminated and redeemed at par by the respective issuer.
After being informed that the managing board of immigon today resolved to implement the measures described above the competent corporate bodies of IK Funding have approved the termination and redemption of its hybrid capital issue today. The envisaged repayment date is 29 March 2018.
In its ad hoc announcement of 9 Janaury 2018, immigon portfolioabbau ag, Peregringasse 2,1090 Vienna, FN 116476p ("immigon"), published the intention to terminate by mutual consent and to redeem at par two supplementary capital issues with no maturity which its subsidiaries ÖVAG Finance (Jersey) Limited ("ÖVAG Finance") and Investkredit Funding Ltd ("IK Funding") subscribed from the proceeds of their respective hybrid capital issues and still hold in order to allow that the securities issued by ÖVAG Finance (Fixed/Floating Rate Non-cumulative Non-voting Preferred Securities, XS0201306288) and IK Funding (Subordinated non-cumulative Limited Recourse Notes, DE0009576108) be terminated and redeemed at par by the respective issuer.
After having obtained the approval by the supervisory board of immigon the managing board of immigon today resolved to implement the measures described above. The competent corporate bodies of ÖVAG Finance and IK Funding have approved the termination and redemption of their respective hybrid capital issues today. The envisaged repayment dates are 22 March 2018 (ÖVAG Finance) and 29 March 2018 (IK Funding).
The own funds and liquidity forecast of immigon portfolioabbau ag, Peregringasse 2,1090 Vienna, FN 116476p ("immigon"), drawn up in the course of preparing the annual financial statements for the financial year 2017, supports the assessment that in the case of immigon's liquidation two supplementary capital issues with no maturity which ÖVAG Finance (Jersey) Limited ("ÖVAG Finance") and Investkredit Funding Ltd ("IK Funding"), each a subsidiary of immigon, subscribed from the proceeds of their respective hybrid capital issues and still hold can be repaid at full nominal amount. This will also allow that, in case of immigon's liquidation, the two hybrid capital issues of ÖVAG Finance and IK Funding may also be repaid at the nominal amount.
In accordance with today's resolution by the management board of immigon, immigon intends to initiate steps to redeem the supplementary capital bonds held by ÖVAG Finance and IK Funding by mutual agreement in order to allow the securities issued by ÖVAG Finance (Fixed/Floating Rate Non-cumulative Non-voting Preferred Securities, XS0201306288) and IK Funding (Subordinated non-cumulative Limited Recourse Notes, DE0009576108) to be redeemed by the respective issuer. The respective repayment amount would be the nominal amount. The redemption and the repayment are subject to approval by the supervisory board of immigon and the competent corporate bodies of ÖVAG Finance and IK Funding; immigon will publicly announce the resolutions on the implementation of the intended measures. The envisaged repayment dates are 22 March 2018 (ÖVAG Finance) and 30 March 2018 (IK Funding). The total amount to be repaid to external investors (i.e. excluding the securities held by immigon) will be approximately EUR 43,125,000. immigon as a wind-down company sees the possibility of a further reduction in complexity and cost savings deriving from the subsequent liquidation of the two subsidiaries.
The Preferred Securities of ÖVAG Finance are listed on the Luxembourg stock exchange and the Amsterdam stock exchange. The Limited Recourse Notes of IK Funding are listed in Frankfurt and Vienna.
After certain buyback programs for bonds issued by immigon portfolioabbau ag, Peregringasse 2, 1090 Vienna, FN 116476p ("immigon"), and listed on the second regulated market (geregelter Freiverkehr) of the Vienna Stock Exchange the management board of immigon resolved today to withdraw all bonds issued by immigon and listed on the second regulated market (geregelter Freiverkehr) of the Vienna Stock Exchange pursuant to § 84 para 5 of the Austrian Stock Exchange Act (Börsegesetz) from the second regulated market (geregelter Freiverkehr) of the Vienna Stock Exchange effective as at the end of 20 June 2017. This delisting includes the senior unsecured bonds, subordinated bonds (Lower Tier 2) and supplementary capital notes (Upper Tier 2) of immigon. The delisting of bonds is initiated in view of the statutory obligation to wind down the portfolio of immigon, which is a wind down company (Abbaugesellschaft) within the meaning of § 162 of the Federal Act on the Recovery and Resolution of Banks (BaSAG); the statutory obligation to wind down includes the obligation to terminate legal relationships (also relationships under public law).
The notification pursuant to § 84 Abs 5 of the Austrian Stock Exchange Act to Wiener Börse AG as responsible stock exchange is made simultaneously.
Accordingly, the trading of the bonds as specified above on the stock exchange will be terminated effective as at the end of 20 June 2017.
It was also decided to publish buyback quotes (the "Buyback Quotes") for all outstanding supplementary capital notes (Upper Tier 2) issued by immigon with a maturity date later than 31 December 2017 on the website of immigon http://www.immigon.com. The Buyback Quotes are intended to be published from 02 May 2017 onwards. immigon may suspend, terminate and/or recommence the publication of the Buyback Quotes at any time in its sole discretion. As long as the Buyback Quotes are published, retail and institutional investors are invited to offer the instruments for sale to immigon at the Buyback Quotes, and immigon shall be entitled (but not obliged) to accept such offers at its sole discretion.
Open Market (Freiverkehr) of Frankfurt Stock Exchange.
The management board of immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN 116476p ("immigon"), herewith announces the successful placement of 9,921,965 shares (the "Sale Shares") in Raiffeisen Bank International AG ("RBI"), ISIN AT0000606306, which immigon held indirectly via its 100% subsidiary Unternehmensbeteiligungs Gesellschaft mit beschränkter Haftung. The Sale Shares were placed today with institutional investors by way of an accelerated bookbuilding at a sales price of EUR 21.00 per Sale Share. The Sale Shares represent approximately 3.02% of RBI's stated share capital.
The transaction generated total gross proceeds for immigon as a group of approximately EUR 208 million. Settlement of the transaction and delivery of the Sale Shares (closing) is expected to take place on 24 March 2017.
Following closing of the transaction, immigon will no longer hold any shares (directly or indirectly) in RBI.
The redemption value of the Preferred Securities issued by ÖVAG Finance (Jersey) Limited depends, inter alia, on the amount of the repayment under the supplementary capital (Ergänzungskapital) issued by immigon and held by ÖVAG Finance (Jersey) Limited, i.e. whether the total of the losses attributed to such supplementary capital exceeds the total of the profits allocated to the supplementary capital over the term of the supplementary capital; such net loss needs to be deducted from the redemption amount (nominal value).
Following placement of the Sale Shares, immigon's updated planning shows that upon completion of the liquidation of immigon, a redemption amount of the preferred securities of 100% of the nominal amount can be expected (instead of, as previously assumed, more than 50% but significantly less than 100% of the nominal amount). The inside information published on 20 January 2017 is thus amended accordingly.
immigon is a wind-down company in accordance with the Austrian Federal Act on the Recovery and Resolution of Banks (BaSAG) and is thus exposed to uncertainties and risks in its wind-down process, including risks related to the proceeds achievable in the course of the sale of its assets, outstanding loans, higher expenses and warranty claims.
Geregelter Freiverkehr of the Vienna Stock Exchange (Wiener Börse AG); Regulated Market of Luxembourg Stock Exchange; Open market (Freiverkehr) of Berlin Stock Exchange; Open market (Freiverkehr) of Stuttgart Stock Exchange; Open Market (Freiverkehr) of Frankfurt Stock Exchange.
On 21 March 2017, the management board of immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN 116476p ("immigon"), has decided as part of its statutory obligation to wind down its assets to sell up to approximately 9,92 million shares (the "Offer Shares") in Raiffeisen Bank International AG ("RBI"), ISIN AT0000606306, subject to investor demand. The Offer Shares represent approximately 3.02% of RBI's stated share capital and represent the entire indirect shareholding of immigon (held via its 100% subsidiary Unternehmensbeteiligungs Gesellschaft mit beschränkter Haftung) in RBI.
The Offer Shares are being offered exclusively to institutional investors through a private placement by way of an accelerated bookbuilding (the "Placement"), which will be launched immediately following this announcement. The final number of Offer Shares to be placed will be determined after closing of the bookbuilding process, and the results of the Placement will be announced as soon as practicable thereafter.
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in the United States, Australia, Canada, Japan or in any jurisdiction to whom or in which such offer or solicitation is unlawful. This announcement does not contain an offer of securities for sale in the United States of America. Any securities referred to herein will not be and have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States of America absent registration or an applicable exemption from registration under the Securities Act. There will be no public offer of the securities in the United States of America. The securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan.
In Member States of the European Economic Area, this announcement is only addressed to and directed at persons who are "qualified investors" within the meaning of Article 2(1)(e) of directive 2003/71/EC as amended. Any securities referred to herein will exclusively be offered or sold in reliance on applicable exemptions from prospectus or registration requirements.
immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, Republic of Austria, FN 116476p ("immigon"), has decided today to publish on its website http://www.immigon.com quotes (the “Buyback Quotes”) for any and all of its outstanding non-subordinated and senior subordinated liabilities with a maturity date later than 31 December 2017 (the “instruments”). The Buyback Quotes are intended to be published from 1 February 2017 onwards. immigon may suspend, terminate and/or recommence the publication of the Buyback Quotes at any time in its sole discretion. As long as the Buyback Quotes are published, retail and institutional investors are invited to offer the instruments for sale to immigon at the Buyback Quotes, and immigon shall be entitled (but not obliged) to accept such offers at its sole discretion.
On 5 July 2016 immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft; "immigon") disclosed as inside information that a redemption value of less than 30 % of the nominal value (instead of zero as expected at the beginning of 2015) in respect of the Preferred Securities (ISIN XS0201306288) issued by ÖVAG Finance (Jersey) Limited may be expected. The redemption value of the Preferred Securities issued by ÖVAG Finance (Jersey) Limited depends, inter alia, on the amount of the repayment under the supplementary capital (Ergänzungskapital) issued by immigon and held by ÖVAG Finance (Jersey) Limited, i.e. whether the total of the losses attributed to such supplementary capital exceeds the total of the profits allocated to the supplementary capital over the term of the supplementary capital; such net loss needs to be deducted from the redemption amount (nominal value).
In the course of the preparation of the drawing up of the annual financial statements of immigon as at 31 December 2016 immigon has reached the conclusion that the outlook published ad hoc on 5 July 2016 needs to be revised due to better results than expected in the wind down of immigon. At present, immigon's wind-down plan shows that upon completion of the liquidation of immigon a redemption value of the Preferred Securities of more than 30 % of the nominal value can be expected. From today's perspective it is more likely than not that the redemption value will be more than 50 % but significantly less than 100 % of the nominal value. It is noted that the amount and the point in time of the payment cannot be predicted more precisely at present, because the results of the wind-down and of the formal liquidation of immigon will have to be available. Having said this, in the specific situation of immigon as wind-down company there are also scenarios conceivable resulting in a redemption value of up to 100 %, but also of less than 50 %.
immigon is a wind-down company in accordance with the Federal Act on the Recovery and Resolution of Banks (BaSAG) and is thus exposed to uncertainties and risks in its wind-down process, including risks related to the proceeds achievable in the course of the sale of its assets, outstanding loans, higher expenses and warranty claims.
immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, Republic of Austria, FN 116476p ("immigon"), has decided to early redeem the fixed callable subordinated bond with ISIN: AT000B053558 according to conditions at par value.
immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, Republic of Austria, FN 116476p ("immigon") announced on 1 December 2016 the start of a purchase tender for the outstanding pieces of the hybrid capital notes issued by Investkredit Funding Ltd. (ISIN DE 0009576108) (the "Hybrid Capital Notes") which was published on 1 December 2016. The holders of the Hybrid Capital Notes were invited to offer Hybrid Capital Notes to immigon for purchase for cash at a price of 75 per cent. of the nominal value of the Hybrid Capital Notes. On 22 December 2016, 17:00 CET, the offer period expired.
Following an evaluation of the offers received, the management board (Vorstand) of immigon resolved on 23 December 2016 to accept the received offers for a total nominal value of EUR 1.955.000. The Settlement Date in respect of the Hybrid Capital Notes accepted for purchase was set to be on 29 December 2016.
Furthermore, the already existing purchase offer of two investors (affiliated with each other), as disclosed in the ad-hoc release dated 1 December 2016, was accepted and a nominal value of a total of EUR 12.618 million was purchased.
As a result of the above, the outstanding nominal value of the present Hybrid Capital Notes is reduced to EUR 10.496.000.
immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN116476p ("immigon"), is a wind-down company in ac-cordance with § 162 of the Federal Act on the Recovery and Resolution of Banks ("BaSAG"). immigon reviews the legally required wind-down plan on a regular basis. On 6 December 2016, the management board (Vorstand) of immigon has resolved to adopt an updated plan based, inter alia, on the results successfully achieved so far in the wind-down. According to this updated plan immigon expects that it will have a positive annual net profit (Jahresüberschuss) despite negative interest income in the solo financial statements in accordance with the Austrian Commercial Code (UGB) (i.e. results before changes in reserves). Such profit is expected to be sufficient to pay interest on the out-standing supplementary capital (Ergänzungskapital), subject to the respective terms and conditions, but not on other profit dependent own funds instruments, as for example the issues of ÖVAG Finance (Jersey) Limited and Investkredit Funding Limited.
immigon as wind-down company continues to be exposed to uncertainties and risks in its wind-down process, including, inter alia, risks related to the proceeds achievable in the course of the sale of its assets, outstanding loans, higher expenses and warranty claims.
The management board (Vorstand) of immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN116476p ("immigon") has, in compliance with the statutory wind-down obligation, resolved to accept a purchase offer from two holders (affiliated with each other) of a total nominal value of at least EUR 12,538,000.00 and a maximum of EUR 12,618,000.00 of the hybrid capital notes (ISIN DE 0009576108) (the "Hybrid Capital Notes") issued by Investkredit Funding Ltd. for cash at a price of 75 per cent. of the nominal value of the Hybrid Capital Notes, which totals more than 50 per cent. of the total outstanding issue of Hybrid Capital Notes. The principal held by the other investors in respect of the totally issued amount of the Hybrid Capital Notes amounts to at least EUR 12,451,000.00 and a maximum of EUR 12,531,000.00 after immigon's purchase.
Furthermore, on 1 December 2016, the managing board of immigon has resolved to invite the holders of the Hybrid Capital Notes to offer Hybrid Capital Notes to immigon for purchase for cash at a price of 75 per cent. of the nominal value of the Hybrid Capital Notes on the terms and subject to the conditions set out in an Invitation Memorandum.
The offer period starts on 2 December 2016 and is due to expire on 22 December 2016 by 5.00 pm CET on such date.
The invitation to offer the Hybrid Capital Notes for purchase by immigon is solely based on the Invitation Memorandum dated 1 December 2016 which is – subject to the invitation and distribution restrictions – available on immigon's homepage (http://www.immigon.com) under the headings "Emissions" and "Buyback offers" and may be obtained from Citibank, N.A., London Branch as Tender Agent or under treasury@immigon.com.
On 6 October 2016, immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, Republic of Austria, FN 116476p ("immigon") announced the launch of a buyback programme for supplementary capital notes and published the same on 6 October 2016. Creditors of 9 series of supplementary capital notes (the "Notes") were addressed and invited to offer immigon their outstanding Notes for repurchase. On 28 October 2016, 17:00 CET the offer period expired. The intended total consideration amount was EUR 55 million.
Offers received from investors comprised Notes with a total nominal volume of around EUR 67.5 million. Following an evaluation of the offers received and prices offered, the management board (Vorstand) of immigon resolved on 2 November 2016 to accept offers for a total consideration amount including accrued interest of EUR 55.1 million.
The Settlement Date in respect of those Notes accepted for repurchase was set to be on 4 November 2016.
 Expressed as a percentage of the principal amount of the relevant Notes.  The amount of Notes of the relevant Series in the relevant currency elected for repurchase.
On 6 October 2016 the managing board of immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN116476p ("immigon"), has resolved to invite the holders of certain outstanding supplementary capital notes, as indicated in Annex A (Anlage A) of the Tender Offer Memorandum (the "Notes"), to offer the Notes to immigon for repurchase for cash on the terms and subject to the conditions set out in a Tender Offer Memorandum. Further, the managing board of immigon has resolved on the Minimum Tender Prices for each Series of Notes which are contained in Annex A to the Tender Offer Memorandum.
The Notes comprise in total 9 issuances of supplementary capital in the form of bonds. The intended total consideration amount including accrued interest according to the current market and trade convention is EUR 55,000,000. The offer period starts on 7 October 2016 and is due to expire on 28 October 2016 by 5.00 pm CET on such date.
The invitation to offer the Notes for repurchase by immigon for cash is solely based on the terms and subject to the conditions contained in the Tender Offer Memorandum dated 6 October 2016 which may – subject to the invitation- and distribution restrictions – be obtained from Ithuba Capital AG, Vienna (the "Dealer Manager").
Details on the repurchase programme, including details on the Notes and their ISINs and ID numbers are, subject to the invitation- and distribution restrictions, available on immigon's homepage under (http://www.immigon.com) under the heading "Emissions" and "Buyback offers" or from the Dealer Manager.
immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN116476p ("immigon") has decided to publish on its website http://en.immigon.com/emissions quotes (the "Buyback Quotes") for any and all of its outstanding senior subordinated liabilities with a maturity date later than 31 December 2016 (the "Instruments"). The Buyback Quotes are intended to be published from 11 July 2016 (expected) until 11 August 2016 (expected). immigon may omit, suspend, terminate and/or recommence the publication of the Buyback Quotes at any time in its sole discretion. As long as the Buyback Quotes are published, retail and institutional investors are invited to offer immigon purchasing the Instruments at the Buyback Quotes, and immigon shall be entitled to accept such offers at its sole discretion.
Due to market reasons, immigon currently does not publish any buyback quotes for senior liabilities. immigon has decided not to recommence for the time being the publication of buyback quotes for senior liabilities even if the mentioned market reasons should fall away.
On 14 January 2015 and on basis of the then prevailing situation of assets and liabilities and earnings of Österreichische Volksbanken-Aktiengesellschaft (now: immigon portfolioabbau ag; "immigon") ÖVAG Finance (Jersey) Limited published an ad hoc release (this ad hoc release was also published by immigon) that ÖVAG Finance (Jersey) Limited expects a redemption value of zero in respect of the Preferred Securities issued by ÖVAG Finance (Jersey) Limited (ISIN XS0201306288). The basis for this expectation was that the losses attributed to the supplementary capital (Ergänzungskapital) issued by (now:) immigon and subscribed for by ÖVAG Finance (Jersey) Limited would be that high that the total of nominal value plus profits attributed to the instrument and less losses attributed to the instrument would result in a (maximum) amount of zero. The amount of the losses to be attributed to the instrument was that high for the foreseeable future that those losses could not be covered any more even by considering the perpetual nature of the instrument.
In the course of the drawing up of the interim accounts of immigon as at 30 June 2016 (and the preparation of the interim report of immigon for the 2nd quarter of 2016) immigon has reached the conclusion that the above forecast needs to be revised due to changed circumstances (i.e. better results of immigon in its wind-down than expected). At present, immigon's wind-down plan shows that it is more likely than not that immigon will generate a liquidation surplus and that immigon will be able to make a repayment on the supplementary capital (Ergänzungskapital) issued by it and subscribed for by ÖVAG Finance (Jersey) Limited out of immigon's liquidation proceeds. In such case ÖVAG Finance (Jersey) will be able to generate a positive redemption value in respect of the Preferred Securities issued by it. The amount and the point in time of the payment cannot be predicted at present because the results of the wind-down and of the formal liquidation of immigon will have to be available; according to immigon's present business plan a positive amount can be expected, however of less than 30 percent of the nominal value of the supplementary capital (Ergänzungskapital) and also of the Preferred Securities.
On 12 April 2016 immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN116476p ("immigon") announced the launch of a buyback programme for subordinated notes and published the same on 13 April 2016. Creditors of a total of 14 subordinated notes (the "Notes") were addressed and invited to offer immigon their outstanding Notes for repurchase. On 18 May 2016, 17:00 CET the offer period expired. The anticipated total consideration amount was EUR 150 million.
Offers received from investors comprised Notes with a total nominal volume of around EUR 195 million. Following evaluation of offers received and prices offered, the management board (Vorstand) of immigon resolved on 20 May 2016 to accept offers for a total consideration amount including accrued interest of EUR 162 million.
Details of the results of the tender offer, of offers accepted as well as of the Notes and their ISINs are, subject to access and offer and distribution restrictions, available on immigon's homepage under http://www.immigon.com/investorrelations under the heading "Ad-hoc releases" or from the Tender Agent VB Services für Banken Ges.m.b.H.
On 30 March 2016 the managing board of immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN116476p ("immigon"), has resolved to invite the holders of certain outstanding subordinated notes, as described below (the "Notes"), to offer the Notes to immigon for repurchase for cash on the terms and subject to the conditions set out in a Tender Offer Memorandum. Today, the managing board of immigon has resolved on the Minimum Tender Prices for each Series of Notes which are contained in Annex A to the Tender Offer Memorandum.
The Notes comprise in total 14 issuances of subordinated liabilities in the form of bonds. The intended total consideration amount is EUR 150,000,000. The offer period starts on 13 April 2016 and is due to expire on 18 May 2016 by 5.00 pm CET on such date.
The invitation to offer the Notes for repurchase by immigon for cash is solely based on the terms and subject to the conditions contained in the Tender Offer Memorandum dated 12 April 2016 which may – subject to the invitation- and distribution restrictions – be obtained from Ithuba Capital AG, Vienna (the "Dealer Manager").
Details on the repurchase programme, including details on the Notes and their ISINs and ID numbers are, subject to the invitation- and distribution restrictions, available on immigon's homepage under http://www.immigon.com under the heading "Emissions” and “Buyback offers" or from the Dealer Manager.
immigon portfolioabbau ag, Peregringasse 2, 1090 Wien, FN116476p ("immigon") has resolved a buyback programme of subordinated liabilities that have a maturity date past 31.12.2017 (the “instruments”). In the coming days a buyback programme in the form of a Reverse Modified Dutch Auction will begin that includes instruments with nominal value of roughly EUR 229 Mio. Private as well as institutional investors will separately be invited to offer the instruments to immigon who in turn is entitled to accept such offers at its sole discretion.
Since 4 July 2015 immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft (ÖVAG)) is no longer a credit institution and no longer part of the permanent affiliation of credit institutions in the Volksbanken-Verbund. Immigon is a wind-down company (Abbaugesellschaft) pursuant to section 162 of the Austrian Federal Act on the Restructuring and Resolution of Banks (Bundesgesetz über die Sanierung und Abwicklung von Banken - BaSAG) with the purpose of actively realizing its assets in an orderly manner and at the best conditions achievable and to meet its obligations when due and payable.
immigon's first financial year as wind-down company pursuant to section 162 BaSAG was successful in light of immigon's mandate and purpose. In 2015, immigon group completed more than 80 wind-down transactions which led to a significant reduction of assets. At the same time, outstanding liabilities were reduced by way of buyback programmes. The IFRS consolidated accounts of immigon group report total assets of EUR 3.8 billion. On single entity basis immigon portfolioabbau ag's total assets were reduced by fifty percent compared to 1 January 2015 (status after the de-merger) and amount only to EUR 3.4 billion at year end 2015.
Almost all of the proceeds from the wind-down transactions is held in accounts with Oesterreichische Nationalbank (Austrian National Bank) as short-term liquidity; the account balance was EUR 1.3 billion as at 31 December2015 (pursuant to the IFRS consolidated accounts of immigon group as at 31 December 2015).
immigon group's liabilities towards clients and credit institutions as well as securitized debt of immigon group (pursuant to the IFRS financial statements as at 31 December 2015) have been reduced by way of buyback programmes to slightly less than EUR 2 billion.
As a result of the de-merger of the central body function to Volksbank Wien AG, major parts of operational income as well as operating expenses of immigon have ceased to exist in the financial year 2015. immigon was able to earn extraordinary income from buyback programmes and from the termination of connected interest rate swaps which have been executed in the second half of 2015, which led to an annual profit after tax of EUR 196 million pursuant to the IFRS financial statements and of EUR 305 million pursuant to the single entity financial statements pursuant to the Austrian Commercial Code (Unternehmensgesetzbuch – UGB), in each case as at 31 December 2015.
As wind-down company, immigon continues to be exposed to uncertainties and risks related to the proceeds achievable in the course of the sale of its assets, outstanding loans, higher expenses and warranty claims. Therefore, in accordance with immigon's mandate of wind down and against the background that the annual profit substantially results from one-time effects, the annual profit on single entity basis has been entirely allocated to immigon's reserves. Consequently, no balance sheet profit (Bilanzgewinn) is shown. Own funds of immigon group increased to EUR 726 million pursuant to the IFRS financial statements (without minority interests) and own funds of immigon portfolioabbau ag increased to EUR 330 million pursuant to the annual financial statements pursuant to UGB (without participation capital 2008 (Partizipationskapital 2008)).
From a current perspective, immigon does not expect comparable results for the financial year 2016, because the profits of the financial year 2015 are significantly due to extraordinary income; a two-digit million amount should be expected on single entity basis at best. immigon could incur losses from the financial year 2017 onwards, because of expected negative interest income and because expenses can be reduced only partly.
Based on the annual profit, immigon will pay interest on supplementary capital instruments in accordance with their respective terms and conditions (therefore, pursuant to its terms and conditions, not in respect of the supplementary capital held by ÖVAG Finance (Jersey) Limited), but not on other instruments which are dependent on a balance sheet profit.
immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN116476p ("immigon"), has decided to early redeem the floating callable subordinated bond with ISIN: XS0275528627 according to conditions at par value.
The early redemptions will be effected at the redemption amounts calculated in accordance with the terms and conditions of the Certificates, which will be published on the website of immigon http://www.immigon.com/investor-relations on or about 23 February 2016.
immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN116476p ("immigon") has decided to publish on its website http://www.immigon.com quotes (the "Buyback Quotes") for any and all of its outstanding non-subordinated liabilities with a maturity date later than 31 December 2015 (the "Instruments"). The Buyback Quotes are intended to be published from 9 November 2015 on. immigon may suspend, terminate and/or recommence the publication of the Buyback Quotes at any time in its sole discretion. As long as the Buyback Quotes are published, retail and institutional investors are invited to offer immigon purchasing the Instruments at the Buyback Quotes, and immigon shall be entitled to accept such offers at its sole discretion.
The early redemptions will be effected at the redemption amounts calculated in accordance with the terms and conditions of the Certificates, which will be published on the website of immigon http://www.immigon.com/investor-relations on or about 10 December 2015 as well as on or about 18 December 2015.
On 7 September 2015, immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN116476p ("immigon") announced and published the launch of a buyback programme for non-subordinated liabilities. Creditors of a total of 95 non-subordinated liabilities in the form of bonds (Anleihen) (the "Instruments") were invited to offer such Instruments to immigon for repurchase against payment in cash. This invitation to submit offers for repurchase was primarily targeted at retail investors, because (among other factors), in accordance with the terms and conditions of the buyback programme, immigon treats tender instructions in respect of Instruments in an aggregate principal amount or unit value not surpassing EUR 250,000 (or the equivalent amount in another currency, if applicable) as priority 1 tender instructions ("Priority 1 Tender Instructions") and thus accepted in priority. The offer period expired on 14 October 2015 at 16:00 hours London time/ 17:00 hours CET.
The offers received from investors comprised Instruments with a total principal amount or unit value of approximately EUR 49 m. Following evaluation of offers received, the management board (Vorstand) of immigon resolved on 15 October 2015 to accept offers for a total consideration amount including accrued interest of approximately EUR 53 million. Therefore, offers that do not qualify as Priority 1 Tender Instruction have also been accepted for repurchase.
Details of the results of the tender offer, of offers accepted as well as of the Instruments and their ISINs or ID-Numbers (as applicable) are, subject to access and offer and distribution restrictions, available on immigon's homepage under http://www.immigon.com/investorrelations under the heading "Ad-hoc releases" or from the Tender Agent Citibank, N.A., London Branch.
On 04 September 2015 immigon portfolioabbau ag released that the Wiener Börse AG (Vienna Stock Exchange) had initiated proceedings to repeal the admission of the participation certificates ISIN AT0000755665 to trading on the Vienna Stock Exchange (see ad-hoc-release dated 04 September 2015). The Wiener Börse AG (Vienna Stock Exchange) has closed these proceedings and repealed today the admission of the participation certificates ISIN AT0000755665 to official trading (Amtlicher Handel) on the Vienna Stock Exchange as per 30 November 2015. As a result, the participation certificates ISIN AT0000755665 will not be admitted to official trading (Amtlicher Handel) on the Vienna Stock Exchange as from 01 December 2015.
The early redemptions will be effected at the redemption amounts calculated in accordance with the terms and conditions of the Certificates, which will be published on the website of immigon http://www.immigon.com/investor-relations on or about 07 October 2015.
On 7 September 2015 the managing board of immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN116476p ("immigon"), has resolved to invite the holders of certain outstanding instruments (as described below) to offer their instruments to immigon for repurchase against consideration in cash.
The instruments subject to the tender offer comprise in total 95 non-subordinated liabilities in the form of bonds (the "Instruments"). The anticipated maximum total consideration amount is EUR 400,000,000. The offer period starts on 7 September 2015 and is due to expire on 14 October 2015, offers to be received by 4.00 pm London time/ 5.00 pm CET on such date.
The invitation to offer the Instruments for repurchase is primarily targeted at retail investors and provides a fixed purchase/tender price for each series of the respective Instruments. In respect of each series of Instruments, Investors who offer to immigon Instruments up to EUR 250,000 in aggregate principal amount (or unit value, as the case may be) (or its equivalent in another currency in which the Instruments are denominated) of the relevant Instruments will receive preferential treatment, as further described in the Tender Offer Memorandum dated 7 September 2015 (the "Tender Offer Memorandum"). Further, immigon will pay an amount corresponding to the accrued and unpaid interest for each purchased Instrument (as applicable).
The invitation to offer the Instruments for repurchase is solely based on the terms and subject to the conditions contained in the Tender Offer Memorandum which may – subject to access and offer and distribution restrictions – be obtained from the tender agent Citibank, N.A., London branch.
Details on the buyback programme, including details on the Instruments and their ISINs and ID numbers are, subject to access and offer and distribution restrictions, available on immigon's homepage under http://www.immigon.com/investor-relations under the heading "Ad-hoc releases" or from the tender agent Citibank, N.A., London branch.
On 28 May 2015, in preparation of its de-merger, the general meeting of Österreichische Volksbanken-Aktiengesellschaft (ÖVAG), the legal predecessor of immigon portfolioabbau ag and issuer of the participation certificates ISIN AT0000755665, resolved to reduce its registered share capital and its participation capital. The de-merger and reduction of the registered share capital and the participation capital became effective as of 4 July 2015.
As a result of the reduction of the registered share capital, the total nominal value of the participation certificates ISIN AT0000755665 listed on the Official Market of the Vienna Stock Exchange (Amtlicher Handel der Wiener Börse) fell below the statutory minimum requirement of EUR 750,000. The Vienna Stock Exchange has thus initiated proceedings to repeal the admission to trading of the participation certificates ISIN AT0000755665 on 03 September 2015.
Pursuant to section 162 of the Federal Act on the Recovery and Resolution of Banks (BaSAG), it would be contrary to the purpose of immigon portfolioabbau ag as a wind-down company to increase its participation capital again. It must thus be expected that the Vienna Stock Exchange will repeal the admission to trading of the participation certificates ISIN AT0000755665 and that the participation certificates ISIN AT0000755665 will not be listed on a stock exchange in the future.
immigon portfolio ag has achieved a positive effect on its results deriving from the buyback programme for non-subordinated liabilities offered from 10 July through 28 July 2015 resulting from the repurchase below the repayment amount and the subsequent termination of derivatives (see ad hoc release dated 31 July 2015). Following the final calculation of the amounts due resulting from the termination of the derivatives, which were entered into in connection with the repurchased issuances, and determination of the effects thereof on the profit and loss statement and taking into account the results of the wind-down measures, the sale of shareholdings and further valuation assessments, the management board has prepared a new forecast for 2015 on 27 August 2015.
Based on its current estimate, the management board is expecting a low three-digit million figure as annual net profit after taxes for immigon portfolioabbau ag's individual financial statements (Austrian Commercial Code – UGB). So far, an amount of approximately EUR 25 million was expected as annual net profit after taxes for immigon portfolioabbau ag's individual financial statements (see the presentation Neuordnung Volksbanken-Verbund, Spaltung, Abbaugesellschaft published on immigon portfolioabbau ag's homepage – as referred to in the ad hoc release dated 24 June 2015).
immigon portfolioabbau ag is a wind-down company in accordance with the Federal Act on the Recovery and Resolution of Banks (BaSAG) and is thus exposed to uncertainties and risks of its wind-down process, such as risks related to the proceeds achievable in the course of the sale of its assets, outstanding loans, higher expenses and warranty claims.
As far as the likelihood of payments in respect of certain profit-related instruments (in accordance with the terms and conditions of such instruments) for the financial year 2015 is concerned, immigon portfolioabbau ag may refer to its ad hoc release dated 31 July 2015. As of today, it is envisaged that, in order to protect itself against the risks in the wind-down process, immigon (in particular due to its business activity as wind-down company) will transfer its net profit to its reserves to the largest extent possible.
immigon portfolioabbau ag agreed to sell its 100% stake in VB Leasing Finanzierungsgesellschaft m.b.H., which it held via its subsidiary Unternehmensbeteiligungs Gesellschaft mit beschränkter Haftung, to BAWAG PSK Leasing GmbH. The relevant sale and purchase agreement was executed on 12 August 2015. The closing is anticipated for 4Q2015, subject to customary conditions, including regulatory approvals. VB Leasing Finanzierungsgesellschaft m.b.H.-Group held net customer receivables of EUR 653 million as at 30 June 2015. The Purchaser will replace 100% of the refinancing of VB Leasing Finanzierungsgesellschaft m.b.H.-Group of approx. EUR 650 million at closing. The deal economics were not disclosed.
The sale of the stake in VB Leasing Finanzierungsgesellschaft m.b.H. is part of immigon’s wind down plan.
On 9 July 2015 immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN116476p ("immigon") announced the launch of a buyback programme for non-subordinated liabilities and published the same on 10 July 2015. Creditors of a total of 268 non-subordinated liabilities in the form of bonds (Anleihen), registered notes (Namensschuldverschreibungen) and Schuldscheine (the "Tender Securities") were addressed and invited to offer immigon their outstanding instruments for purchase or prepayment (as applicable). On 28 July 2015, 16:00 London time / 17:00 CET the offer period expired. The anticipated total consideration amount was EUR 850 mn.
Offers received from investors comprised Tender Securities with a total nominal volume of around EUR 1.456 bn. Following evaluation of offers received and prices offered, the management board (Vorstand) of immigon resolved on 31 July 2015 to accept offers for a total consideration amount including accrued interest of EUR 933 million. Details of the results of the tender offer, of offers accepted as well as of the Tender Securities and their ISINs or ID-Numbers (as applicable) are, subject to access and offer and distribution restrictions, available on immigon's homepage under http://www.immigon.com/investorrelations under the heading "Ad-hoc releases" or from the Tender Agent Citibank, N.A., London branch.
Following implementation of the buyback programme within the next few days, the management board of immigon expects a positive effect on immigon's results.The results planning for 2015 presumed in the resolution plan (Abbauplan) has intensified further as the management board's current expectation is that a positive result may likely be recorded at single entity level in immigon's single entity annual financial statements for the financial year 2015. This could potentially lead to subsequent payments by immigon in respect of certain profit-related instruments in accordance with the terms and conditions of such instruments. Whether this will in fact be the case, can only be determined after expiry of the financial year 2015.
On 28 November 2013 Österreichische Volksbanken-Aktiengesellschaft (now immigon) has announced via EANS-Adhoc that a negative result is to be expected at single-entity level in any event until the end of the financial year 2015. Due to the changed expectations of the management board on 31 July 2015 in relation to its year-end results, immigon hereby revises its previous ad hoc release for the financial year 2015 in the sense that pursuant to current expectations held by the management board it is rather likely that immigon may record a positive result for the financial year 2015 in its annual financial statements at single entity level.
immigon portfolioabbau ag (formerly Österreichische Volksbanken-Aktiengesellschaft), Peregringasse 2, 1090 Vienna, FN116476p ("immigon") announced on 24 June 2015 that it began preparing a buyback programme for non-subordinated liabilities. Following the implementation of the demerger of ÖVAG and the continued operation of immigon as wind-down company (Abbaugesellschaft) pursuant to section 162 of the Austrian Federal Act on the Restructuring and Resolution of Banks (Bundesgesetzes über die Sanierung und Abwicklung von Banken) on 4 July 2015 the management board (Vorstand) of immigon has resolved on 9 July 2015 on the launch, of an invitation to holders or creditors of certain instruments to offer their outstanding instruments for purchase or prepayment (as applicable).
Instruments the subject of the tender offer constitute in total 268 non-subordinated liabilities comprising the following instruments: bonds (Anleihen), registered notes (Namensschuldverschreibungen) and Schuldscheine (the "Tender Securities"). The anticipated maximum total consideration amount is EUR 850,000,000. The offer period is expected to begin on 10 July 2015 and expire at 16.00 (London time)/ 17.00 (CET) on 28 July 2015.
The invitation to offer the Tender Securities for purchase or prepayment is solely based on the terms and subject to the conditions contained in the Tender Offer Memorandum dated 10 July 2015 which can (subject to access and offer and distribution restrictions) be obtained from the Tender Agent Citibank, N.A., London branch and the Dealer Manager Citigroup Global Markets Limited.
Details on the tender offer, the Tender Securities and their ISINs or ID-Numbers (as applicable) are, subject to access and offer and distribution restrictions, obtainable on immigon's homepage under http://www.immigon.com/investor-relations under the heading "Ad-hoc releases" or from the Tender Agent Citibank, N.A., London branch.
Oesterreichische Volksbanken-Aktiengesellschaft, Kolingasse 14-16, 1090 Wien, company register number 116476p (VBAG) is now in the process of preparing for the demerger and continued operation of VBAG as a wind-down entity pursuant to Section 162 of the Federal Act on the Recovery and Resolution of Banks (Bundesgesetz über die Sanierung und Abwicklung von Banken). The regulatory and official approvals needed for this purpose are not yet available. Concerning the envisaged procedure for the demerger and continued operation of VBAG as a wind-down entity, VBAG refers to information published on its website.
Provided the demerger is legally effective and the continued operation of VBAG as a wind-down entity is approved by the relevant authorities, VBAG must reduce the portfolio optimally and as quickly as possible. Therefore, VBAG’s Managing Board has today prudentially decided to begin preparing a buyback programme for liabilities. In this context, VBAG is also publishing updated information about the institution, particularly planning assumptions for those business areas that will remain part of the wind-down entity “immigon portfolioabbau ag” after the demerger. Due to the fact, that the demerger of VBAG is still subject to regulatory approval, and it will not be known until the end of the 2015 business year whether the planning assumptions have been realised, no definite statement can be made at the present time regarding the development of earnings set out in the planning.
The information mentioned above is available on VBAG's website, http://www.volksbank.com/investor-relations under Group information/Presentations. VBAG will continually update this information about the institution and publish it on VBAG’s website as appropriate. Any buyback will take place by way of a public offer to investors and will only concern non-subordinated liabilities. VBAG will make a separate announcement in due course regarding the actual implementation of a buyback programme, including the liabilities concerned.
ÖVAG Finance (Jersey) Limited invested the proceeds of its EUR 32.629 million Fixed/Floating Rate Non-cumulative Non-voting Preferred Securities in supplementary capital (upper tier 2 capital) issued by Österreichische Volksbanken-AG (VBAG).
Upper tier 2 capital is loss-absorbing according to section 23 (7) of the Austrian Banking Act (version before entry into force of federal law BGBI. I Nr. 184/2013 on 01 January 2014) and can be redeemed at maturity before liquidation of the bank only after deduction of net losses allocated on a pro-rata basis over the life of the securities.
Net losses are the negative sum of annual results after taxes (profits or losses) before changes in reserves on the single entity level of the bank incurred over the life of the securities. Yearly results are allocated on a pro rata basis, the amount of profit or loss allocated to a specific upper tier 2 security is determined by the volume of the respective issue in relation to the total volume of loss-absorbing instruments (upper tier 2 securities, participation capital, share capital) then outstanding. When redeeming an upper tier 2 security, the results allocated over its life are summed up and in case of net losses these have to be deducted from the redemption amount.
VBAG’s current demerger plan envisages that supplementary capital of VBAG together with other equity capital instruments will remain in the future wind-down unit after completion of the demerger. The amount of net losses currently allocated to the supplementary capital of VBAG, held by ÖVAG Finance (Jersey) Limited, exceeds the amount of the securities’ nominal value and as no future profits are to be expected in the wind-down unit there is no potential to decrease allocated net losses through theoretical future profits. Therefore a redemption value of zero should be expected for VBAG’s supplementary capital. Consequently the management of ÖVAG Finance (Jersey) Limited expects that the redemption value of the Preferred Securities issued could as well be zero.
Within the framework of the supervisory review and evaluation process (SREP), the European Central Bank today announced a draft decision requiring the Association of Volksbanks to maintain a CET1 ratio of 14,63 % from 26 July 2015.
The Management Board of Oesterreichische Volksbanken-Aktiengesellschaft (VBAG) took the decision in principle to split VBAG and to establish a run down unit in October 2014. This represents one of the central measures included in the capital plan which has been sent to the ECB.
The establishment of a run down unit also was an item on the agenda of the General Meeting held by VBAG today. The EGM unanimously took the decision in principle that VBAG’s business model is to be changed. The aim is for VBAG to become a “run down company” (Abwicklungsgesellschaft) in particular as per Section 162 of the draft Federal Law on Bank Recovery and Resolution (Banken Sanierungs- und Abwicklungsgesetz). When VBAG is put into run down status, it is also planned for central institution functions and related assets and liabilities to be taken over by Volksbank Wien-Baden.
The run down of VBAG is subject to approval from a number of bodies, notably the European Commission for Competition, the European Central Bank and the national authorities.
An Extraordinary General Meeting of Österreichische Volksbanken-Aktiengesellschaft (VBAG) today unanimously took the decision in principle that VBAG’s business model is to be changed. The aim is for VBAG to become a “run down company” (Abwicklungsgesellschaft) in particular as per Section 162 of the draft Federal Law on Bank Recovery and Resolution (Banken Sanierungs- und Abwicklungsgesetz). When VBAG is put into run down status, it is also planned for central institution functions and related assets and liabilities to be taken over by Volksbank Wien-Baden AG.
OVAG Finance Jersey therefore assumes that VBAG will, subject to the necessary approval mentioned above, cease to be a going concern in the future. OVAG Finance Jersey’s sole asset is supplementary capital issued by VBAG which is loss absorbing according to the Austrian Banking Act and may only be repaid before liquidation after deduction of allocated net losses. Depending on the success and timing of the run down of VBAG, this might lead to further impairment of OVAG Finance Jersey’s asset and thus have a negative impact on the value and ultimately the potential repayment of the preferred securities issued by OVAG Finance Jersey.
An Extraordinary General Meeting of Österreichische Volksbanken-Aktiengesellschaft (VBAG) today unanimously took the decision in principle that VBAG’s business model is to be changed. The aim is for VBAG to become a “run down company” (Abwicklungsgesellschaft) in particular as per Section 162 of the draft Federal Law on Bank Recovery and Resolution (Banken Sanierungs- und Abwicklungsgesetz). When VBAG is put into run down status, it is also planned for central institution functions and related assets and liabilities to be taken over by Volksbank Wien-Baden AG .
Investkredit Funding therefore assumes that VBAG will, subject to the necessary approvals mentioned above, cease to be a going concern in the future. Investkredit Funding’s sole asset is supplementary capital issued by Investkredit Bank AG, a company merged into VBAG in 2012, which is loss absorbing according to the Austrian Banking Act and may only be repaid before liquidation after deduction of allocated net losses. Up to now no net losses have been allocated to this instrument. Depending on the success and timing of the run down of VBAG, this might lead to further impairment of Investkredit Funding’s asset and thus have a negative impact on the value and ultimately the potential repayment of the limited Recourse Notes issued by Investkredit Funding.
In the run-up to the transfer of supervisory duties for the EU’s 130 largest banks, the European Central Bank (ECB) has subjected these institutions to a series of extensive tests, known as the comprehensive assessment or CA. The Austrian Association of Volksbanks is one of six Austrian banking groups undergoing this assessment.
The aggregate capital shortfall calculated by the ECB for the Association of Volksbanks amounts to euro 864,72 million. This is in line with previous announcements by VBAG that the Association of Volksbanks may require further capital in the future.
The stress test did not take into account the wind-down measures actually taken in 2014 or the planned restructuring of the Association of Volksbanks, as these came after the test’s cut-off date of 31 December 2013. Under the restructuring plan, VBAG will be split up and the Volksbank sector strengthened by mergers to create nine regional banks and three specialist institutions. This plan remains subject to approval by the authorities and VBAG’s executive bodies. There is currently no prospect of dividend payments on VBAG’s profit-related instruments (participation capital, hybrid capital, supplementary capital).
The Executive Board of Österreichische Volksbanken-AG (VBAG) decided in principle today to restructure VBAG. Those assets and tasks that are currently allocated to VBAG´s non-core business areas are to be fully liquidated. Assets and service units belonging to the core business, together with all tasks undertaken by VBAG in its capacity as the central organisation of the Association of Volksbanks, are to be merged into a new top institution of the Association.
VBAG's objective is to deal swiftly with all remaining transactions that are not part of the core business, to meet its liabilities to creditors on the relevant maturity dates and to avoid any additional burden on taxpayers.
The concrete plan together with the relevant legal aspects will be worked out in more detail over the coming weeks. Final implementation will require official and supervisory approval.
A meeting of all cooperative bank members of the Association of Volksbanks took place today; there was a large majority in favour of implementing a fundamental restructure and accepting the "9+3" structure model with more than 95%. Small and medium-sized banks will merge together to form nine strong regional banks that will cooperate closely with one another in future. These will be augmented by three specialist institutions.
The purpose of this package of measures is to significantly strengthen the profitability of Austrian Volksbanken and to make it possible for them to raise funds on the capital markets.
Oesterreichische Volksbanken-AG( VBAG) as central organisation of Volksbanken-Verbund announces that it was informed by the Austrian Financial Market Authority (FMA) on the result of the draft report of the Joint Risk Assessment and Decision-Process (JRAD) as per 31 Dec. 2012.
The FMA notes in this draft decision that Volksbanken-Verbund will have to ensure fulfillment of a total capital ratio of 13.6%. The exact date as per which Volksbanken-Verbund will have to comply with the ratio will be set by the FMA at a later stage.
In its last reporting to the Austrian National Bank on 31 Oct. 2013 Volksbanken-Verbund had a total capital ratio according to Basle II of 15%. This ratio will decline in future due to the changeover from Basel II to Basel III, as well as the loss of VBAG on a single entity level for the business year 2013, which will likely exceed euro 200 million. Additional capital measures are being evaluated in order to meet a possible capital requirement.
The Board of Management of Österreichische Volksbanken-AG (VBAG) is currently preparing a new medium-term plan for 2014 and subsequent years. It indicates that, in view of restructuring measures, a negative result is to be expected at the single-entity level at any rate until the end of the 2015 business year, so that interest payments on supplementary capital should not be anticipated at least until 2016 (for the business years 2014 and 2015).
The interim report for the first three quarters of 2013 was completed at the same time.
Detailed results for the first three quarters of 2013 will be published on Friday 29 November 2013 on the VBAG website (www.volksbank.com/investor_relations).
Since temporary tax differences related to the 2008 participation capital ceased to apply, conditions for recognition of deferred tax liabilities as at 31 December 2012 were no longer met. The difference in the result caused by this changes increases the IFRS result after tax by euro 95.7 million in the fourth quarter of 2012.
The board of directors of Österreichische Volksbanken-Aktiengesellschaft (VBAG) announces that the single entity result (according to local GAAP) for the business year 2012 will be negative within a clearly double-digit million euro bandwidth.
Due to different accounting rules between the single entity accounts (local GAAP) and the consolidated group accounts (IFRS), the latter will show a triple-digit million euro profit. Mainly responsible for the difference between the single entity result (local GAAP) and the IFRS result is the different accounting treatment and timely realization of the capital reduction on the participation capital issue 2008. Contrary to the single entity result, the participation capital issue 2008 is treated as a liability in the IFRS consolidated group accounts. The capital reduction on this instrument is therefore realized in the IFRS consolidated profit and loss statement as per September 28, 2012. In the single entity accounts the capital reduction was realized retroactively as per December 31, 2011.
Due to the expected difficult economic environment and the resulting deductions on the run-down portfolio, interest payments on supplementary capital (Ergänzungskapital) should not be expected for the years 2013 and 2014.
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).
• 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.
• 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.
(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.
ÖSTERREICHISCHE VOLKSBANKEN–AG AND INVESTKREDIT ANNOUNCE RESULTS OF INVITATION FOR OFFERS TO SELL NOTES NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO ANY PERSON RESIDENT AND/OR LOCATED IN THE UNITED STATES OR TO ANY U.S. PERSON (29 June 2012) On 14 June 2012, Österreichische Volksbanken–Aktiengesellschaft ("ÖVAG") and Investkredit Funding Ltd ("Investkredit") announced that ÖVAG was inviting holders of the €50,000,000 subordinated non-cumulative Limited Recourse Notes (ISIN: DE0009576108 and WKN: 957 610) issued by Investkredit on 28 November 2002 (the "Notes") to offer to sell any and all of their Notes to ÖVAG for cash (the "Invitation"). The terms and conditions of the Invitation are set out in the Invitation Memorandum dated 14 June 2012 (the "Invitation Memorandum"). Capitalised terms used in this announcement have the meanings ascribed to them in the Invitation Memorandum. Invitation The Invitation expired at 5 p.m., CET, on 28 June 2012. ÖVAG intends to accept for purchase all Notes validly offered for sale. Accordingly, ÖVAG accepts for purchase €24,931,000 in aggregate nominal amount of the Notes. Noteholders whose offers to sell have been accepted by ÖVAG will receive €400 per €1,000 nominal amount of the Notes and the Accrued Interest Payment, in immediately available funds in cash on the Settlement Date. Following the completion of the Invitation, the aggregate nominal amount of the Notes that will remain outstanding will be €25,069,000. The Settlement Date is expected to be 4 July 2012.
For clarification purposes VBAG announces that due to the strategic corporate decision agreed by the Republic of Austria, the owners and VBAG to approve a cut in capital effective 31 December 2011 and to reduce the participation capital held by the Republic of Austria not more than 70 %, this cut in capital will as well affect the investors of other participation capital issues of VBAG (ISIN AT0000755665, XS0359924643 and AT0000A018V0). These issues will be reduced by the same ratio as the participation capital held by the Republic of Austria.
Österreichische Volksbanken-AG (VBAG), Deutsche Zentral-Genossenschaft, Ergo Versicherung AG, Raiffeisen Zentralbank AG, Österreichische Volksbanken Holding eGen, the Volksbanks and the Republic of Austria have concluded a joint agreement on the long-term stabilisation of VBAG.
the creation of a joint liability scheme (Haftungsverbund) in accordance with the new section 30a of the Austrian Banking Act, which still has to be passed into law by the Austrian Parliament.
DZ Bank, Ergo, RZB, Österreichischer Genossenschaftsverband and Volksbanken Holding will approve a cut in capital effective 31 December 2011 and ensure that the holding accounted for by the participation capital of the Republic of Austria is reduced to not more than 70%.
This capital decrease will also entail a capital increase of around €480 million. The capital increase will be performed by the Republic of Austria in the amount of €250 million and the Austrian Volksbanks in the amount of at least €230 million. The Volksbanks will remain the majority owner of VBAG.
Asset guarantee from the Republic of Austria for VBAG in the amount of €100 million with a fee of 10% from the time of a legally binding resolution by the Volksbanks to form a cooperative bank in accordance with section 30a BWG expiring 31 December 2017 at the latest.
The Volksbanks undertake to ensure and pay the fee for the asset guarantee issued by the Republic of Austria for VBAG. Furthermore, the Volksbanks will ensure the repayment of the participation capital of the Republic of Austria from the 2009 issue after the capital reduction as at 31 December 2011.
Presentation of a restructuring and reorganisation concept by the Management Board of VBAG.
In order to strengthen VBAG’s capital ratios, RZB will ensure best efforts in order to assist VBAG in its disposal of RZB shares and in any case guarantees to implement adequate measures that will improve capital ratios and liquidity at VBAG. DZ Bank and ERGO undertake to leave all liquidity held in VBAG Group unchanged until further notice. In particular, this relates to the refinancing of VB Romania and VB Leasing International by DZ Bank. In addition, DZ Bank will assume a portfolio of the Frankfurt branch of Investkredit in the amount of €400 million. RWA.
The total capital buffer shortfall as calculated by the EBA for Österreichische Volksbanken-Aktiengesellschaft VBAG is 972 mn. EUR. This is a preliminary and indicative figure which is subject to change on the basis of end September data and will be reviewed by banks and supervisory authorities. It is the revised, latter figure that will form the basis for any plans required to increase levels of capitalisation in the period to June 2012. Furthermore EBA in its press release yesterday takes into account the current restructuring process at VBAG and its withdrawal from the CEE area which has been set in motion with the sale of Volksbank International already. The board of directors of VBAG with these and further measures is undertaking all efforts in order to realise the required capital buffer per June 30, 2012.
Annual loss (according to guidance) in the VBAG single entity financial statements is expected to amount to approximately EUR 900 million (+/- EUR 150 million depending on the development of the markets. We expect a loss ranging from EUR 500 million to EUR 750 million on the consolidated group level (IFRS). The main drivers are significant write-downs in the amount of EUR 700 million on the book value of the participations in Investkredit Bank AG and Volksbank Romania S.A. in the single entity accounts of VBAG.
The planned combination of VBAG and Investkredit Bank AG will not take place this year.
Currently no repayment of EUR 300 million participation capital held by the Republic of Austria.
Despite of the expected loss, capital ratios according to pillar I are clearly exceeding regulatory requirements. In addition, VBAG Group strengthened capital ratios through the sale of Volksbank International to Sberbank, resulting in an expected increase of the core capital ratio to 10.4% and a rise of the equity ratio to 13.7% by year end 2011.
Currently the board of directors and the core shareholders of VBAG are discussing measures to strengthen VBAG’s capitalization. Part of these discussions is the modification of the Schultze-Delitzsch Genossenschaftsverbund in the form of a cooperation under Article 3 of the directive 2006/48/EC (part of the European application of Basel II) or the Article 9 of the CCR I draft (Capital Requirements Regulation I, which is the directly applicable regulatory part of the Basel III execution on the European level). A resolution to implement such modification was adopted today.
The board of directors of Investkredit Bank AG announced today, that the planned transfer of the banking business of Österreichische Volksbanken-Aktiengesellschaft to Investkredit Bank AG by way of demerger (announced on April 15, 2011) will not be effected in 2011. Regarding a possible future combination of both companies no statement can be made at present.
The management board of Österreichische Volksbanken AG (VBAG) announces that due to the increasingly difficult economic environment a payment on profit-related instruments (shares, participation capital, hybrid capital and supplementary capital) in 2012 for the 2011 business year is unlikely from today´s viewpoint.
According to a current forecast the main reasons for the profit warning are an increasingly difficult economic environment which negatively affected the valuation of participations (VB Romania), the sale of participations as well as an earnings forecast impacted by potential additional financial burdens (e.g. measures by the Hungarian government with respect to foreign currency loans).
The owners of Volksbank International AG (VBI) and the representatives of the Sberbank of Russia (Sberbank) signed an agreement relating to the acquisition of the VBI Group today in Vienna. Until now, Österreichische Volksbanken-AG (VBAG) has held a 51% shareholding in VBI, whereas the German banking groups DZ BANK AG / WGZ BANK AG and the French BPCE S.A. have each held a 24.5% stake in VBI. With the signing of the agreement, Sberbank agreed to acquire a 100% stake in Volksbank International AG. VB Romania is not included in the transaction. The deal price will be 1.0x VBI equity (excluding VB Romania) ranging from EUR 585 million to EUR 645 million depending on business performance of VBI in 2011. In addition to the sales price, Sberbank will assume financings provided by the current owners in an amount of almost EUR 2.5 billion. Also at closing, VBAG or a group of banks led by VBAG will provide Sberbank with five-year funding in an amount of EUR 500 million. Closing of the transaction is expected by the end of the year – after certain conditions precedent are fulfilled.
VBAG result half year 2011: Group result declining as a result of write downs on sovereign risk.
The management board of Österreichische Volksbanken AG (VBAG) announces, that group operating result for the half year 2011 amounted to euro 199 mio. Write downs on sovereign risk led to a group result before taxes of euro 11 mio.
As a result of the difficult economic environment and of the current degree of implementation of VBAG´s “Strategy 2015” a payment or a full payment on dividend-carrying securities (shares and participation capital) in 2012 for the 2011 business year is unlikely from today´s viewpoint.
Oesterreichische Volksbanken-AG (VBAG) participated in the EU-wide bank stress test conducted by the European Banking Authority (EBA). VBAG´s unstressed, baseline core tier I ratio as of 31 December 2010 is 6.4%. In the simulated worst case scenario the core tier I ratio would be 4.5% as of 31 December 2012 which is 0.5 percentage points below the benchmark defined by EBA. Taking into account the measures that are currently being implemented, the core tier I ratio as of 31.12.2012 is 6.6%. When capital instruments which are loss-absorbing according to the Austrian banking law are also fully factored in, the stressed tier I ratio is 9.8%.
It is planned that in the General Assembly on 19 May 2011 a resolution will be passed on the transfer of VBAG´s banking business to Investkredit Bank AG by means of a proportional de-merger. The draft of the de-merger agreement stipulates (as set forth in detail in the agreement) that VBAG as transferor company intends to transfer its banking business to Investkredit Bank AG as assuming company by way of an universal succession. The remaining EUR 700 million of the state participation capital will be transferred to Investkredit Bank AG. The company name of the unified bank will be changed to Österreichische Volksbanken-AG. The de-merger is subject to approval by the General Assemblies of both companies involved and by the FMA (Austrian Financial Market Authority).The de-merger will be legally effective when registered in the commercial register at the Vienna Commercial Court which is expected to take place in the second half of 2011.
A separate notice will be published pursuant to the Austrian De-Merger Act regarding the disclosure of the de-merger agreement as required by law.
The core shareholders of VBAG made the fundamental decision on 15 April 2011 to acquire in 2011 part of the participation capital of the Republic of Austria in an amount of EUR 300 million. This decision is subject to final approval by the General Assembly in 2011 May.
In accordance with its “Strategy 2015”, Österreichische Volksbanken-AG (VBAG) will be focusing on its core business. This includes VBAG’s function as the central institution of the Volksbank sector, the corporate business and the real estate activities. Austria and its neighbouring countries constitute the core regions for these activities. For business activities and participations which are not part of VBAG´s core business, various options are currently being evaluated. In this context, the Management Board resolved at today's meeting to review the possible sale of the stakes in Volksbank International AG and VB-Leasing International Holding GmbH and to initiate the respective process. The corresponding steps, which will take place over the course of the next few months and are to be supported by the mandated consultants, could result in the sale of these stakes.
* Assumption: payments on the participation capital issued in 2008 are presented as dividend payments (as under Austrian GAAP).
It is expected that dividend payments on the participation capital held by the Republic of Austria and all other profit-related instruments will be made from 2012 onwards (i.e. for the fiscal years 2011 onwards). The government participation capital is expected to be redeemed starting in 2011 as stipulated by the agreement.
Österreichische Volksbanken-Aktiengesellschaft (VBAG) and CA Immo AG have agreed on the sale of 100% of shares in the VBAG subsidiary Europolis AG to CA Immo. The Management Board and Supervisory Board of ÖVAG approved the sale in their meetings today. CA Immo AG will pay € 272 million for all shares in Europolis AG. Among other things, the sale is subject to the suspensive conditions of approval by the responsible authorities and the implementation of internal restructuring measures agreed within the Group. To further streamline the Group’s structure, the Management Board and Supervisory Board of VBAG today resolved to combine the banking operations of VBAG and those of Investkredit Bank AG. Details of the combination will be analysed and drawn up in the coming weeks. Legal implementation will occur in the first half of 2011. The implementation of these strategic options will serve to further strengthen the business model of VBAG.
During the business year 2009, Österreichische Volksbanken-AG (VBAG) has introduced comprehensive restructuring measures. One of these was the sale of the retail subsidiaries VB Wien, Immobank, Ärztebank and VB Linz-Mühlviertel to the Volksbank sector which has been put on track successfully. During the Group´s repositioning in 2010 VBAG continues with the implementation of further measures. A formal process to evaluate all strategic options including strategic partnerships was established. Lazard & Co GmbH was mandated to accompany VBAG in this evaluation process.
In the course of today’s Managing Board meeting and Supervisory Board meeting respectively, the boards passed the resolution to sell 3 subsidiaries of Österreichische Volksbanken-AG (Volksbank Wien-AG, Bank für Ärzte und freie Berufe-AG, Immobank-AG) unless otherwise provided in the pending agreement to be given by the Austrian Financial Market Authority by the end of 2009. Unless otherwise provided in the pending agreement to be given by the Austrian Financial Market Authority (FMA) a majority stake in Volksbank Linz Mühlviertel reg. Gen. mbH, will be sold as well. This sale is expected to generate sales proceeds in total of some EUR 210 million.
With a view to the semi-annual report of Österreichische Volksbanken-AG currently being drawn up and following notification of the rating of Baa1/E+ released by Moody´s on 24 July 2009, we can no longer expect a positive result for 2009. Our subsidiary Investkredit Bank AG likewise does not expect to post any profit for 2009. As a result, the dividends and coupons for the 2009 business year which are due for payment in 2010 for all profit-related securities of both institutions (equities, participation capital, hybrid capital, supplementary capital) will almost certainly not be paid out.
After a week of intensive negotiations, a decision was made today regarding the future of Kommunalkredit Austria AG. Volksbank AG will surrender all of its shares (50.78%) in Kommunalkredit. These will be taken over by the Republic of Austria.
“This solution ensures that Kommunalkredit Austria will be sustainably stabilised and will also have sufficient liquidity and capital strength during the further course of the financial crisis, in order to continue successfully financing Austrian municipalities and other institutions governed by public law”, commented Franz Pinkl, Chief Executive of Volksbank AG, on the result of the negotiations. “With this step, the Republic of Austria is following the approach of other European states with public financiers".
The shares held by Dexia and VBAG in Kommunalkredit are to be transferred to the federal government for a total consideration of EUR 2. With this, the federal government will hold 99.78 percent of Kommunalkredit in the future. Until further notice, the Austrian Association of Municipalities will remain a shareholder, with 0.22 percent of the shares.
Dexia and VBAG will be obligated to strengthen the capital of Kommunalkredit and underwrite participation capital, as an owners’ contribution. For VBAG, this means a share of EUR 173 million. A share of EUR 200 million in participation capital is attributable to Dexia. The participation capital is to be furnished with a dividend of 8 percent and is to be granted for a term of at least 5 years. Through these measures and additional equity capital from the federal government, the core capital ratio of Kommunalkredit will be increased to 8 to 9 percent. VBAG and Dexia will issue guarantees for possible future losses in Kommunalkredit. Confidentiality has been agreed regarding the amount of the respective guarantees.
The Kommunalkredit shares of 49.16 percent in Dexia Kommunalkredit Bank (DKB) will be transferred to Dexia for EUR 1. No further liability obligations will arise from the surrender of DKB for KA.
The Republic of Austria will ensure that Kommunalkredit has sufficient liquidity by guaranteeing future issues of Kommunalkredit.
At today’s Supervisory Board meeting it was resolved to strengthen the capital base of Volksbank AG. This will increase the core capital ratio to at least 9%. This value has established itself internationally as a benchmark for banks. The existing shareholders of Volksbank AG will participate in the capital increase to the necessary extent, and the utilisation of a government package is also being reviewed. “With the upcoming measures to strengthen capital we are sustainably strengthening our position in national and international competition, in a market environment that is known to be difficult. Surrendering the shares in Kommunalkredit Austria AG relieves VBAG’s financial situation. It means we can further expand our position as a reliable financing partner for private and corporate customers”, says the Supervisory Board of Volksbank AG.

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