Vienna Insurance Group plans to issue subordinated bond worth up to EUR 500 million




Vienna Insurance Group AG Wiener Versicherung Gruppe plans to issue a subordinated bond (after implementing Solvency II, this is expected to be recognised as Tier 2 capital, from today’s perspective) of a probable volume of up to EUR 500 million and the optional increase by a maximum of EUR 70 million. The bond will have a basic maturity of 30 years and will be callable after ten years by the issuer.
The proceeds from the bond issue will be used to further strengthen the financial base of Vienna Insurance Group, to finance continuing growth in Central and Eastern Europe as well as to prepare for meeting the capital adequacy requirements under the Sovency II Directive.

The main target group of the bond issue are institutional investors. Moreover, the Group also intends to offer the bond in the retail segment in Austria, the Czech Republic, Germany, Luxembourg and perhaps in Switzerland. Vienna Insurance Group has an “A+“ rating with stable outlook. The international rating agency Standard & Poor´s has awarded a probable “A-“ rating to the planned issue of the subordinated bond.

In the next few days, road shows will be held for institutional investors. The terms of the bond will then be laid down in accordance with demand determined in the book building process based on current market conditions. The issuing banks are Erste Group Bank AG as well as BNP Paribas.

This announcement is for information only and is neither an offer to sell nor a solicitation to buy securities of VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe. A public offering in Austria may be made only after publishing a capital market prospectus. Any securities orders received prior to the commencement of the offer period will be rejected. If a public offering is made in Austria, a capital market prospectus will be published, which you will receive free of charge from VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe, Schottenring 30, 1010 Vienna. The information contained in this announcement is not binding.

The distribution of this announcement and any public offerings of the bond are forbidden by law in specific countries. Persons gaining access to this announcement shall inform themselves of and comply with the relevant legal provisions. The bond has not been registered in accordance with the U.S. Securities Act of 1933 as amended ("US Securities Act") and may be subject to US tax laws. The bond may not be offered, sold, resold or supplied, neither directly nor indirectly (subject to specific exceptions provided for in the law), in the United States of America and their territories and/or to US persons (as defined in the US Securities Act) or in any other country where this would be illegal; furthermore, it is forbidden to disseminate any documents related to this bond in these countries.

24 VIG Bond Eng
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