Kommunalkredit Bring € 455m to Greek Swap

Businessn.a. ♦ Published: March 8, 2012; 13:18 ♦ (Vindobona)

Kommunalkredit AG and KA Finanz AG, two nationalized Austrian banks, said they will join Greece’s debt swap with a total of € 455m ($600 million) to avoid triggering default swaps.

Kommunalkredit Bring € 455m to Greek Swap / Picture: © Vindobona.org

Kommunalkredit will tender its € 150m of Greek government bonds in the exchange, while KA Finanz will participate with € 305m of its holdings, Alois Steinbichler, the chief executive officer of both lenders, said. While Kommunalkredit had previously said it might join, KA Finanz changed its mind to help boost the total take-up and avoid it being forced to pay out credit-default…