EANS-News: Kommunalkredit issued the first Austrian Social Covered Bonds

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EUR 300 m issuance size Issuance significantly oversubscribed Coupon of 0,375 per cent, tenor of 4 years

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Vienna, 04/07/2017 - Kommunalkredit Austria AG (Kommunalkredit) today has successfully issued the first Austrian EUR 300 m Social Covered Bonds with a tenor of 4 years and a coupon of 0,375 per cent. The issuance was preceded by a euro-wide roadshow. The issuance was significantly oversubscribed with the order book totaling EUR 531 m (from more than 40 investors). Kommunalkredit was also capable of broadening its investor base by this transaction. This bond has been the first issuance since the privatization of the Bank in 2015.

The issued bond is a Social Covered Bonds based on the Green Bond Principles by the International Capital Market Association (ICMA). The net proceeds of the Social Covered Bond are exclusively used for the financing of projects in the field of social infrastructure, namely education, health and social housing -both for the refinancing of Kommunalkredit's existing social infrastructure portfolio and for new projects.

The renowned sustainability rating agency Sustainalytics has audited the implementation of the social framework for Social Covered Bonds in Kommunalkredit and confirms that Kommunalkredit is fulfilling all prerequisites for the issuance of this bond. The complete report has been published by Sustainalytics in the form of a so-called "Second Opinion" under following link: http://www.sustainalytics.com/green-social-bond-services/ [http:// www.sustainalytics.com/green-social-bond-services/] and on Kommunalkredit's own webpage in the investor relations section.

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issuer: Kommunalkredit Austria AG Türkenstraße 9 A-1092 Wien phone: +43 1 31 6 31 FAX: +43 1 31 6 31 105 mail: kommunal@kommunalkredit.at WWW: www.kommunalkredit.at ISIN: - stockmarkets: Wien, SIX Swiss Exchange, Luxembourg Stock Exchange language: English

Digital press kit: http://www.ots.at/pressemappe/409/aom

Rückfragen & Kontakt:

Kommunalkredit Austria AG
Ingo Rieger
Head of Treasury
1092 Vienna, Tuerkenstrasse 9
Tel.: +43 (0) 1/31 6 31-620, Fax: -99620
investorrelations@kommunalkredit.at
www.kommunalkredit.at

Kommunalkredit Austria AG
Martin Hehemann
Head of Corporate Communications
1092 Vienna, Tuerkenstrasse 9
Tel.: +43 (0) 1/31 6 31-532, Fax: -99532
m.hehemann@kommunalkredit.at
www.kommunalkredit.at

ORIGINAL APA-OTS TEXT - THE INFORMATION CONTAINED IN THIS PRESS RELEASE IS SUBJECT TO THE EXCLUSIVE RESPONSIBILITY OF THE ISSUER | CNE0001