Hybrid Bond for Hypo Group

Professional ServicesBanks ♦ Published: November 3, 2012; 19:57 ♦ (Vindobona)

In order to cover the capital shortfall of Hypo Group, the Austrian state may inject € 500m into the nationalized bank. Furthermore, the bank plans to issue bonds worth € 1.0bn.

Hybrid Bond for Hypo Group / Picture: © Wikipedia / JJ55 (30 March 2008)

 

The Austrian state has to equalize Hypo Group´s capital shortfall until March 2013. In total, the Austrian bank needs € 2.2bn. In November, the bank is said to issue hybrid bonds worth up to € 1.0bn. According to the news agency Reuters, the bond issue will not be enough. The Austrian state will have to inject cash contributions worth € 500m. This is substantially more…