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KA Finanz AG

EANS-Adhoc: KA Finanz AG

  Disclosed inside information pursuant to article 17 Market Abuse Regulation
  (MAR) transmitted by euro adhoc with the aim of a Europe-wide distribution.
  The issuer is solely responsible for the content of this announcement.

Supervisory board authorises management board to negotiate a
refinancing facility with governmental ABBAG - first step towards the potential
handing back of banking licence and constitution of the company as a "run-off
company" in accordance with the BaSAG (Austrian Banking Restructuring and
Resolution Act)
Today, the supervisory board of KA Finanz AG (KF) authorised KF's management
board to negotiate with ABBAG - Abbaumanagementgesellschaft des Bundes (ABBAG),
the sole owner of which is the Republic of Austria, on a refinancing facility
that is to fully replace KF's current refinancing.
A condition of such refinancing by ABBAG would be that KF constitutes itself as
a run-off company in accordance with section 162 of the Austrian Banking
Restructuring and Resolution Act (BaSAG). In this process, the banking licence
of KF would expire. Constituting KF as a run-off company is subject to the
proviso that a number of currently uncertain conditions will be complied with,
in particular approval by the FMA (the Austrian Financial Market Supervision
Agency) and, from today's perspective, is still uncertain, just as ABBAG's grant
of refinancing to KF.
Being continued as a run-off company would enable KF to create an efficient and
cost-effective structure in a changed regulatory environment. The regulatory
framework and capital requirements for credit institutions within the EU, which
are continuously being tightened, provide for constraints aiming at active
commercial banks that can be complied with by a run-off bank such as KF only
with difficulty and at higher costs. Upon its reconstitution as a run-off
company, the run-off horizon for KF's portfolio is envisaged to be shortened as
well. Initially, a complete wind-down by 2040 had been agreed on with the
European Commission. As a run-off company, KF would strive at achieving this
objective as early as within ten years. KF will continue to aim at making use of
the market opportunities and potential impairment reversals arising in the
course of the run-off.
KF is currently obtaining a portion of approximately 59% of its refinancing from
the market without any direct supporting governmental measures. If the
negotiations with ABBAG are successful, refinancing in the future would be fully
provided by ABBAG, which in turn would obtain the funds required for that
purpose from the Republic of Austria.
Also in case ABBAG undertakes to refinance KF and KF is constituted as a run-off
company, existing bonds, loans and private placements of KF will continue to be
honoured and redeemed at their full nominal value at their relevant due dates.

ISIN(s):                      AT0000329859; AT0000441209; XS0140045302;
                              XS0144772927; XS0185015541; XS0236776877;
                              XS0257275098; XS0279423775; XS0973424152;
                              XS1013581274; XS1033673440; XS1270771006;
                              XS1288050799; XS1288050872; XS1325164132;
                              XS1331664679; XS1460837732
Stock Exchange(s):            Vienna, Luxembourg

Further inquiry note:
KA Finanz AG
Dr. Helmut Urban, CEO
A-1092 Wien, Türkenstraße 9
Phone: ++43(0)1/310 06 06-600

end of announcement                               euro adhoc 

issuer:      KA Finanz AG
             Türkenstraße 9
             A-1092 Wien
phone:       +43/1/310 06 06
FAX:         +43/1/310 06 06 - 404
sector:      Banking
ISIN:        -
stockmarkets: stock market: Luxembourg Stock Exchange, Wien 
language:   English

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