REG - Komercni Banka - Tier 2 increase

Komercni Banka asAnnouncement

29/11/2023 16:00

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RNS Number : 1112V  Komercni Banka  29 November 2023

Komercni banka, a.s. http://www.kb.cz/en (http://www.kb.cz/en)

Prague 1, Na Prikope 33, building identification number 969, Post Code 114 07

Identification No.: 45 31 70 54

LEI Code: IYKCAVNFR8QGF00HV840

incorporated in the Commercial Register maintained with the Municipal Court in
Prague,

section B, insert 1360

Disclosed on 29 November 2023

The Information is available also at the following link:
https://www.kb.cz/en/about-the-bank (https://www.kb.cz/en/about-the-bank)

 

Regulatory information

 

Komerční banka increases Tier 2 regulatory capital by EUR 100 million

 

Prague, 29 November 2023 - Komerční banka, a.s., with registered office at
Na Příkopě 33/969, 114 07 Prague 1, registration No. 45317054, entered in
the Commercial Register maintained with the Metropolitan Court of Prague,
section B, file No.1360 (hereinafter also Komerční banka), announces that

On 28 November 2023, Komerční banka as a borrower concluded the agreement
with Société Générale, a société anonyme incorporated under  French
law,  with its registered office at 29 Boulevard Haussmann, 75009 Paris,
France, registered with the Trade and Company Registry of Paris under number
552 120 222 (Société Générale) as a lender on provisioning of a Tier 2
subordinated loan in the amount of EUR 100 million, the value date 29 November
2023, with 10 year maturity and a call option for the benefit of Komerční
banka after 5 years, at an interest rate of EURIBOR 3M plus 2.82% p.a. As of
the contract date, Société Générale holds 60.35% ownership stake in
Komerční banka.

The increase in Komerční banka's regulatory capital on account of the
subordinated loan represents approximately 0.46% of consolidated risk-weighted
assets as of 30 September 2023. The subordinated loan is denominated in EUR to
better align currency structures of KB's capital and assets. Komerční banka
evaluates on a continuous basis the debt capital market for bank issuers and
concluded that the loan from Société Générale provides the most effective
option for Komerční banka, also considering the resolution strategy applied
in Société Générale Group.

As of 30 September 2023, i.e., not including the above-mentioned Tier 2
subordinated loan, total consolidated regulatory capital of Komerční banka
for the capital adequacy calculation reached CZK 106.5 billion. Capital
adequacy stood at 20.2%. Core Tier 1 (CET1) capital totalled CZK 103.6 billion
and the Core Tier 1 ratio was 19.6%. Tier 2 capital summed to CZK 2.9
billion, which was 0.5% of risk-weighted assets.

 

 

 

 

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