In accordance with the Rules of Ljubljanska borza, d.d., Ljubljana, and applicable law, Družba za upravljanje terjatev bank, d.d. ("BAMC"), Davčna ulica 1, Ljubljana, hereby makes the following announcement:
On 15 December 2016 maturing DUT02 bonds were repaid in full in the amount of 503.2 million EUR, together with interest from all three bond issues in the amount of 26.7.5 million EUR.
After selection of the best bidders in a transparent and competitive process, BAMC draw-down a long-term 150.0 million EUR loan to repay the DUT02 bond from Erste Group Bank AG Vienna, and a 355.0 million EUR syndicated loan from Nova Ljubljanska banka d.d., Banka Koper d.d., NKBM d.d., Unicredit Banka Slovenije d.d. and Abanka d.d. with Nova Ljubljanska banka d.d. as the agent. Both loans have an amortizing structure, maturing in mid-December 2021. BAMC has the option of early repayment, which gives it flexibility in managing its liquidity until 2021. The loans are secured with a state guarantee, subject to a 1% guarantee fee payable to the Republic of Slovenia.
By refinancing the DUT02 bond, BAMC was able to significantly reduce the costs of financing. The interest rates for the two loans is significantly lower than the 4.5% interest rate on the matured DUT02 bond, which came as a result of the situation at the end of 2013, when the measures to strengthen the stability of the banks were taken. The BAMC's cost of financing in 2017 will thus be decreased by over 20 million EUR.
On 15 December 2016, BAMC also fully repaid the remaining 53.6 million EUR matured obligations to the Ministry of Finance from the Factor banka and Probanka merger, created in the context of the orderly winding-down of Factor banka and Probanka in 2013. Thus, BAMC has repaid a total of 369.0 million EUR of the relevant financial liabilities to the Ministry of Finance in 2016.
The refinancing and repayment of financial liabilities marks an important step in the fulfilment of the BAMC's mission, as defined by the ZUKSB. BAMC thus reduced its future costs of financing and reduced its debt leverage and repaid invested funds, reducing the burden on the Republic of Slovenia and the taxpayers.