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 issues the following notice:

On 13 October 2014, BAMC and Abanka Vipa d.d., Ljubljana (“Abanka”), signed the contract on implementation of measures to strengthen the stability of the bank, as approved by the Government of the Republic of Slovenia, the asset management agreement with regard to the measures to strengthen the stability of the bank, and a service agreement with regard to the measures to strengthen the stability of the bank.

On 18 July 2013, in accordance with the first paragraph of Article 4 of the Decree on the Implementation of Measures to Strengthen Bank Stability (Official Gazette of the RS no. 103/13), the Government of the Republic of Slovenia decided that Abanka Vipa d.d. (“Abanka”) qualifies as a beneficiary of said measures under the Act Defining the Measures of the Republic of Slovenia to Strengthen Bank Stability (Official Gazette of the RS no. 105/12, as amended).

On 25 September 2014, the Government of the Republic of Slovenia was informed that , based on the European Commission’s decision dated 13 August 2014 regarding compliance of the measures to strengthen the stability of the bank with EU state aid regulations, the required conditions have been met for final implementation of measures to strengthen the stability of Abanka, i.e. recapitalization, transfer of exposures to BAMC and issuance of a state guarantee for obligations undertaken. 

In accordance with the provisions of the contract on implementation of measures to strengthen the stability of the bank, Abanka sold these contracts to BAMC on the date of signing the said contract, effectively transferring assets with a value of EUR 423,816,345.58. The subject of the transfer includes mainly nonperforming loans with a transfer value of EUR 421,816,345.58 and bonds and equity shares with a transfer value of EUR 2,000,000.00. The combined gross value of all transferred assets was €1,143.7 million.

The physical transfer of the files is scheduled to be executed in two stages and expected to complete by the end of December 2014.

BAMC will pay for the acquisitions using government-backed bonds maturing in December 2017, which are scheduled to be issued and delivered to Abanka by 20 October 2014.

This notice will also be posted on the company website, www.dutb.eu, for 5 years following the date of publication.

BAMC