(The following press release from SNS Reaal NV was received by e-mail. The
sender also posted the statement on www.snsreaal.nl)
SRLEV postpones coupon payment on CHF105,000,000 undated callable subordinated
bonds (ISIN code CH0130249581)
SRLEV has issued CHF105,000,000 undated callable subordinated bonds in July
2011 under the ISIN code CH0130249581 (the Bonds), the terms and conditions of
which are set out in a prospectus dated 15 July 2011 (the Terms and
Conditions). The European Commission has recently decided not to allow SRLEV to
pay the coupon due on the Bonds on the next interest payment date, i.e. 19
Therefore, SRLEV makes use of its optional deferral right based
on Condition 4(e) of the Terms and Conditions not to pay such coupon. This
decision confirms the decision of the European Commission of 22 February 2013
in which the State aid measures as a result of the nationalization of SNS
REAAL, the holding company of SRLEV, on 1 February 2013 have been preliminary
approved with the provision that a coupon ban applies for those payments that
do not stem from a legal obligation.
Since the interest payment by SRLEV due on 19 December 2013 is not compulsory
based on the Terms and Conditions, the European Commission does not allow SRLEV
to pay this coupon. Pursuant to Condition 7 of the Terms and Conditions, such
non payment of the coupon will not constitute an event of default. Unpaid
interest shall as long as it remains unpaid constitute arrears of interest and
shall bear the same rate of interest as is payable on the Bonds.
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