KBC Groep : KBC Group : KBC successfully placed 1 billion USD of contingent capital notes

 KBC Groep : KBC Group : KBC successfully placed 1 billion USD of contingent
                                capital notes

Press release - During trading hours
Brussels, 18 January 2013

Today, following a  very successful  investor roadshow  throughout Europe  and 
Asia from Monday 14  through Thursday 17  January 2013, KBC  Bank NV placed  1 
billion  USD  of  tier-2  contingent  capital  notes  which  was  targeted  at 
institutional and high-net-worth investors. The  issue met with strong  demand 
and was more than 8 times oversubscribed.

Johan Thijs, KBC Group  CEO commented on the  successful issuance as  follows: 
'On 10 December 2012, we announced  our intention to issue contingent  capital 
notes for approximately  0.75 billion EUR  in the first  quarter of 2013.  The 
successful transaction underscores the Group's capability to access capital on
a global  basis  and  reflects  its  strong  capital,  liquidity  and  funding 
position. This notes  issue further  strengthens our  existing robust  capital 

The notes  were offered  in minimum  denominations of  USD 200  000 and  were 
widely placed  with institutional  and high-net-worth  investors in  Asia  and 
Europe. They will carry  a coupon of 8%  per annum and have  a maturity of  10 
years,  with  an  optional  call  at  year  5.  Furthermore,  the  notes   are 
subordinated and will  qualify as  tier 2  capital under  Basel III  standards 
(based on the  CRD IV draft  of 20 July  2011). They carry  an expected  'BB+' 
rating from  Standard &  Poor's and  will be  listed on  the Luxembourg  stock 
The transaction will close and the notes will be issued on 25 January 2013.

Geographical distribution was well spread across Europe and Asia.

J.P. Morgan (structuring adviser), BofA Merrill Lynch, Credit Suisse,  Goldman 
Sachs International and Morgan Stanley were mandated as Joint Bookrunners  and 
Joint Lead Managers, and KBC Bank acted as Joint Lead Manager.

KBC remains one  of the best  capitalised banks in  Europe. Its reported  core 
tier-1 ratio stood at 13.4% at the end of September 2012. Including the impact
of the signed divestments of Absolut  Bank, Nova Ljubljanska banka and a  full 
exit from Kredyt Bank, the capital increase  of 1.25 billion EUR and the  sale 
of 350 million EUR worth of treasury  shares, as well as the reimbursement  of 
the remaining 3  billion EUR in  state aid to  the Belgian Federal  Government 
(including the 15% penalty), the pro forma core tier-1 ratio came to 12.7%  at 
the end of September 2012. Furthermore,  as announced on 10 December 2012,  it 
is KBC Group NV's intention to maintain a fully loaded Basel III common equity
target ratio of minimum 10% as from 1 January 2013.

For further information, please contact:

Wim Allegaert, General Manager, Investor Relations, KBC Group
Tel. +32 2 429 40 51 E-mail wim.allegaert@kbc.be

Viviane Huybrecht,  General  Manager,  Corporate  Communication  /  KBC  Group 
Tel. +32 2 429 85 45 E-mail pressofficekbc@kbc.be

Important information

This announcement is for information purposes only and does not constitute  an 
offer to sell or a solicitation of an offer to purchase any contingent capital
notes in the  United States. The  contingent capital notes  have not been  and 
will not  be registered  under the  U.S. Securities  Act of  1933, as  amended 
(the"Securities Act"), or the laws of any  State within the U.S., and may  not 
be offered or sold in the United States, except in a transaction which is  not 
subject to,  or pursuant  to an  applicable exemption  from, the  registration 
requirements of  the  Securities  Act  or  any  State  securities  laws.  This 
announcement may  not  be distributed  or  sent  into the  United  States.  No 
offering of the contingent capital notes is being made in the United States.

This announcement may not be distributed,  directly or indirectly, in or  into 
Australia, Canada, Japan, South Africa or  any other jurisdiction where to  do 
so would be a breach of laws.

KBC press releases are available at www.kbc.com or can be obtained by sending
an e-mail to pressofficekbc@kbc.be



This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.

Source: KBC Groep via Thomson Reuters ONE
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