Ithuba Capital advises Republic of Austria on successful agreement with Heta creditors

Utl.: First successful partial bail-in of creditors holding debt of
a failed bank benefitting from a statutory guarantee by a
European sub-sovereign entity =

Vienna/Austria (OTS) - Ithuba Capital has acted as financial advisor
to the Republic of Austria in the course of the recently implemented
agreement with creditors of Heta Asset Resolution (the wind-down unit
of former Hypo Alpe-Adria International) and the related capital
markets transactions for a total volume of approximately EUR 10.9
billion. This was made public today, October 13th 2016, by Ithuba
Capital.

We are delighted to have been involved in structuring and executing
these transactions which represent the first successful partial
bail-in of creditors holding debt of a failed bank benefitting from a
statutory guarantee by a European sub-sovereign entity. The offer of
Kärntner Ausgleichszahlungs-Fonds, which had been pre-negotiated upon
the initiative of and was now financed by the Republic of Austria,
was accepted on 7 October 2016 by an overwhelming creditor majority
of 97.8% of affected debt instruments, thereby eliminating
potentially devastating liabilities of the Austrian Province of
Carinthia.

Heta is a wind-down unit and since 1 March 2015 in the process of
resolution according to BaSAG (the Austrian implementation of the EU
Bank Recovery and Resolution Directive). In the course of this
transaction the Republic of Austria acted through the Ministry of
Finance and ABBAG - Abbaumanagementgesellschaft des Bundes. Ithuba
Capital is a private and independent securities firm located in
Vienna, specializing in restructuring financial institutions and the
disposal of wind-down portfolios.

ORIGINAL APA-OTS TEXT - THE INFORMATION CONTAINED IN THIS PRESS RELEASE IS SUBJECT TO THE EXCLUSIVE RESPONSIBILITY OF THE ISSUER | DKA

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