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Erste Paid Back € 1.22 to Austrian State

Published: August 8, 2013; 12:18 · (Vindobona)

On Thursday, Erste Group announced that the participation capital in the amount of € 1.76 was paid back completely.

Erste Paid Back € 1.22 to Austrian State / Picture: © Vindobona.org

Hence, Erste Group has paid back the participation capital in the amount of € 1.76bn, which was emitted in 2009. € 1.22 was subscribed by the Austrian state and € 530m by private investors.

From 2009 until 2012, the Austrian state received an annual dividend payment in the amount of € 98m while private investors received € 43m, according to the bank. Including the aliquot dividend for 2013, which will in all likelyhood be paid in June 2014, according to a respective decision during the general meeting, the Republic of Austria will receive a total of € 448m from the security measures. Private investors will receive € 198m.

“We have a lot of respect for the Austrian federal government, which five years ago took swift action, and we would also like to thank Austrian taxpayers and private investors that kept their faith in us,” stated Andreas Treichl, CEO of Erste Group. “The 8% dividend was a really good deal for all investors and tax payers”.

“With a dividend of 8 percent, the participation capital of Erste Group was a really good bargain for all investors and taxpayers,” he said.

The participation capital was issued in 2009 in order to enable Erste Group to remain a strong partner for its clients even in times of economic crisis. In the meantime, Erste Group has substantially strengthened its capital base and already meets all regulatory requirements.

However, the return of funding from other supported banks like nationalized Hypo Group or KA Finanz, outsourced bad bank of Kommunalkredit, is highly unlikely.