Vienna Insurance Group

euro adhoc: Vienna Insurance Group
Capital measures
Vienna Insurance Group plans the issue of EUR 250 million hybrid bonds

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Not for distribution in the United States, Canada, Japan and Australia.

Please note: this is a translation; only the German version of this release is legally binding

Wiener Städtische Versicherung AG Vienna Insurance Group plans to issue hybrid bonds with an expected volume of EUR 250 million. Presumably, the bonds will have a perpetual maturity and a fixed coupon* for the first ten years. The company is entitled to call the bonds at the end of the first ten years.

The proceeds of the bonds will be used for general funding purposes, to further strengthen Vienna Insurance Group´s equity capital and to finance acquisitions in Central and Eastern Europe. The financial flexibility of Vienna Insurance Group for further expansion will be increased. The Vienna Insurance Group has an "A+" rating with positive outlook. The proposed issue of hybrid bonds was assigned with an "A-"rating by Standard & Poor´s, an internationally renowned rating agency. The hybrid bond issue is a continuation of Vienna Insurance Group´s capital market strategy. Private investors will have the opportunity to directly invest in hybrid bonds as was the case in connection with preceding capital markets issues.

Vienna Insurance Group CEO Günter Geyer comments: "The continuation of our growth strategy and the strengthening of our equity capital are key parameters for the Vienna Insurance Group with its group companies in 23 countries to secure its sustainable long-term financial strength, stability and independence. Our focus is on the growth markets in CEE and we have demonstrated this with the results of our first quarter: Our premiums show a double-digit increase. We expect that the demand for insurance products securing the standard of living during old age will become increasingly stronger in this region."

It is planned to start with road shows in Austria and abroad for selected institutional investors, e.g. on May 26, 2008, in Vienna. The exact terms of the offer will be determined subsequently in a book-building process, based on the demand for the hybrid bonds as well as on the actual market conditions. Retail investors in Austria will have the opportunity to subscribe the bonds following the determination of the terms (during the subscription period expected for June 2 to 4, 2008 and subject to the right of early termination of the subscription period). An application for the listing of the bonds on the Second Regulated Market of the Vienna Stock Exchange will be submitted. Lead-Manager of the hybrid bond issue is Erste Bank der oesterreichischen Sparkassen AG ("Erste Bank").

The terms and conditions of the bonds are explained in the base prospectus of the Hybrid Debt Issuance Programme and will be determined in detail in the final terms. The bonds will be accounted for as equity.

* The final coupon, margin at the start of the subscription period and the margin if the hybrid bonds are not called after 10 years will be determined in the final terms and announced immediately prior to the start of the subscription period.


This information does not represent an offer or invitation to purchase securities of WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group ("VIG"). Any public offer will only be made pursuant to and on the basis of the base prospectus published for the purpose of the hybrid debt issuance programme. The base prospectus together with any supplements is available free of charge at the headquarters of VIG, Schottenring 30, 1010 Wien, during ordinary business hours. Prior to and during any public offer the final terms of the issue will also be made available free of charge during ordinary business hours at the headquarters of VIG. In connection with the offer of securities by the issuer, only the information provided in the base prospectus is binding; the information provided in this press release is not binding.

This release and the information contained herein are not for distribution in or into the United States of America and must not be distributed to U.S. persons (as defined in Regulation S of the U.S. Securities Act of 1933, as amended ("Securities Act")) or to publications with a general circulation in the United States. This press release does not constitute an offer to sell or a solicitation of an offer to purchase any securities in the United States. The securities of Vienna Insurance Group have not been and will not be registered under the Securities Act and may not be offered, sold or delivered within the United States or to U.S. persons absent registration under or an applicable exemption from the registration requirements of the Securities Act. There will be no public offer of securities of Vienna Insurance Group in the United States.

This release is directed only to persons (i) who are outside the United Kingdom or (ii) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (as amended) (the "Order") or (iii) who fall within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations, etc.") of the Order (all such persons together being referred to as "Relevant Persons"). Any person who is not a Relevant Person must not act or rely on this communication or any of its contents. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

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ots Originaltext: Vienna Insurance Group
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Further inquiry note:
Mag. Barbara Hagen-Grötschnig
Vienna Insurance Group
A-1010 Wien, Schottenring 30
Tel.: +43 (0)50 350-21027
Fax: +43 (0)50 350 99-21027

Branche: Insurance
ISIN:      AT0000908504
WKN:        A0ET17
Index:    WBI, ATX Prime, ATX
Börsen:  Prague Stock Exchange / stock market
              Wiener Börse AG / official market

Weitere Meldungen: Vienna Insurance Group

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