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BAMC repays €168 million of its debt1.2.2017

On 1 February 2017, BAMC executed early repayment of its syndicated loan granted by Slovenian banks in the amount of €168.0 million. After this early repayment, the remaining balance of the syndicated loan amount to €187.0 million.

BAMC had acquired the liquidity necessary to repay its financial liabilities from the €50.0 million recapitalization, provided by the Republic of Slovenia in late December 2016, and through its asset management operations in December 2016 and January 2017, after BAMC successfully finalized several sale transactions.

After the €168.0 million repayment, BAMC's financial liabilities stemming from issued bonds and loans received decreased by 12% and the current remaining balance (excluding accrued interest) amounts to €1,106.4 million.

This constitutes BAMC's partial repayment of the funds invested by the Republic of Slovenia into rehabilitation of the Slovenian banking sector, in line with its mission laid out in the Act Defining the Measures of the Republic of Slovenia to Strengthen Bank Stability.

Announcement about the decisions of the BAMC General Meeting10.1.2017

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:

At of 5 January 2017, the Government of the Republic of Slovenia, acting in the capacity of the General Meeting of BAMC, passed the following decisions:

1. The Government of the Republic of Slovenia, acting in the capacity of the General Meeting of BAMC, took note of the request of dr. Marko Simoneti for removal from the post of member of the Management Board BAMC.

 2. The Government of the Republic of Slovenia, acting in the capacity of the General Meeting of BAMC, recalled dr. Marko Simoneti from the post of non-executive director of the Management Board BAMC, effective as of the date of expiry of the three-month notice period, that is 27 January 2017.

3. The Government of the Republic of Slovenia, acting in the capacity of the General Meeting of BAMC, appointed dr. Miha Juhart as non-executive director of the Management Board BAMC, for the period from 28 January 2017 until 27 January 2022.

4. The Government of the Republic of Slovenia, acting in the capacity of the General Meeting of BAMC, appointed Mitja Križaj as non-executive director of the Management Board BAMC, for the period from 28 January 2017 until 27 January 2022.

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

BAMC’s strategic plan and recapitalization adopted 27.12.2016

​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:

During the session of 22 December 2016, the Government of the Republic of Slovenia, acting in the capacity of the BAMC General Meeting, passed a decision to subscribe 50 million EUR to increase the capital reserves of BAMC, thereby strengthening BAMC's capital structure. BAMC will use the newly-invested funds for early repayment of BAMC's financial liabilities, effectively decreasing the Republic of Slovenia's guarantee exposure and return the taxpayers' investment.

In addition to the 50 million EUR increase of capital reserves, the Government of the Republic of Slovenia, acting in the capacity of BAMC's General Meeting, also passed a decision on the simplified reduction of BAMC's registered share capital. The registered share capital is to be decreased from 208,235,000 EUR to 104,117,500 EUR, creating an additional capital reserve of 104,117,500 EUR. The capital reserves thus created shall be used to cover the losses from past periods.

The Government of the Republic of Slovenia also approved the BAMC Business Strategy for the 2016-2022 period. BAMC's mission and main strategic plans remain the same as in the previous strategy - to maximize the return on the taxpayers' investment into the rehabilitation of banks, intensive asset management and performing corporate restructuring in cases where this is economically justifiable.

BAMC Business strategy 2016-2022 with Business plan summary.pdf 

BAMC fully repays the DUT02 bond and all obligations vis-a-vis the Ministry of Finance15.12.2016

​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.

Unaudited Half-Year Report for the year 2016 published30.9.2016

​In accordance with the provisions of the Act Defining the Measures of the Republic of Slovenia to Strengthen Bank Stability (ZUKSB), Družba za upravljanje terjatev bank, d. d. ("BAMC") published its unaudited half-year report for the year 2016.

BAMC's operations in the first half-year period of 2016 was predominantly characterized by the merger of Factor banka and Probanka into BAMC and the related reorganization, process- and cost-optimization activities, allowing BAMC to lay solid foundations for successful future operations.

In the first half-year period of 2016, BAMC has either reached or surpassed most of its strategic goals. Despite carrying out the demanding merger process, BAMC generated cash flows from asset management operations in the amount of 124.3 million EUR, which corresponds to 6.2% of the value of acquired and merged assets. BAMC thus surpassed the half-year target set by the Act Defining the Measures of the Republic of Slovenia to Strengthen Bank Stability (ZUKSB), and by August 2016 it had already surpassed the 10% annual target.

The high volume of cash flows generated has allowed BAMC to repay its financial obligations at an increased rate during the first half-year period. In April, BAMC made an early repayment of debt to the Ministry of Finance which was transferred as part of the merger of Factor banka and Probanka, in the amount of 150 million EUR (followed by a further repayment of 120 million EUR in August).

While BAMC had a net loss of 5.6 million EUR in the first half-year period of 2016, this loss stems from the accounting effects which BAMC recognized in the merger of Factor banka and Probanka, originating from the fair value revaluation of assets upon the merger. If these effects were to be excluded, BAMC would generate a net profit of 3.6 million EUR, which would correspond to 8% ROE.

As a result of the merger's financial effects, BAMC's equity decreased by 72.3 million EUR, which is less than the 76 million EUR which was the amount of the approved, but not yet used, state aid intended to cover the potential future losses of the two banks in the orderly winding-down process.

The merger of Factor banka and Probanka to BAMC was a major procedural and organizational challenge for BAMC, as well. Through diligent preparations for the merger and successful implementation of post-merger activities, BAMC was able to increase the efficiency of business processes and optimize costs. The by the half-year mark, the company's headcount had been reduced by 17% compared to the number of employees on the merge date. In the wake of the reorganization process, which was finalized on 1 July 2016, the number of employees is still decreasing. Furthermore, a highly complex process integration exercise was successfully finalized, including measures to decrease the costs of outsourcing.

This has made BAMC a stronger organization, allowing it to implement statutory and other goals asked by the Government of the Republic of Slovenia.

BAMC's unaudited Half-Year Report for the Year 2016 will also be available on the company website, www.dutb.eu, for a period of 5 years following the date of publication.

BAMC’s unaudited Half-Year Report for the Year 2016 

Publication of the annual report of DUTB, d.d. for the year 201523.9.2016

​In accordance with the provisions of the Act Defining the Measures of the Republic of Slovenia to Strengthen Bank Stability (ZUKSB), Družba za upravljanje terjatev bank, d. d. has published the audited 2015 annual report.

BAMC had already published its 2015 Business Report to the National Assembly on 31 May 2016 (http://seonet.ljse.si/default.aspx?doc=SEARCH&doc_id=60913), disclosing the unaudited BAMC financials for 2015, which are the same as the audited financials.

On 29 April 2016, BAMC also published a notice on the BAMC website, announcing that the publication of the 2015 audited annual report has been deferred (http://seonet.ljse.si/default.aspx?doc=SEARCH&doc_id=59666) and explaining the reasons for the delay. Meanwhile, during the period from the public notice of delayed publication of the 2015 audited annual report to present day, BAMC delisted all its bonds from the Ljubljana Stock Exchange regulated market, making it possible to apply the provisions of the third and fifth paragraphs of Article 4 of the Act Defining the Measures of the Republic of Slovenia to Strengthen Bank Stability (ZUKSB), which stipulate that BAMC is released from the obligation to consolidate the financial statements of companies it acquired in a buyout or corporate restructuring procedure; and require BAMC to use International Financial Reporting Standards (IFRS) in its financial reporting and accounting.

After the delisting from the regulated market of the Ljubljana Stock Exchange, BAMC finalized its annual report, in accordance with the ZUKSB. KPMG Slovenija, d.o.o., Železna cesta 8a, Ljubljana, performed the audit of the financial statements, and issued an unqualified opinion.

BAMC's audited annual report will also be available on the company website, www.dutb.eu, for a period of 5 years following the date of publication.

The annual report has not yet been approved by the Government of the Republic of Slovenia as the general meeting of the BAMC.

DUT03 and DUT04 bonds listed on the Third Market at the Vienna Stock Exchange23.8.2016

This is to inform the interested public that on 22 August 2016 BAMC was notified by the Vienna Stock Exchange that its application to list its DUT03 and DUT04 bonds in the Vienna Stock Exchange Third Market quotation and that both bond issues were listed on the Third Market as of 23 August 2016. The Vienna Stock Exchange's Third Market is a MTF (multilateral trading facility), and is not a regulated securities market.

In the context of listing the DUT03 and DUT04 bonds on the Vienna Stock Exchange Third Market, BAMC is planning to delist all three bond issues (DUT02, DUT03 and DUT04) from the regulated market at the Ljubljana Stock Exchange no later than the beginning of September.

The purpose of BAMC's decision to list the DUT03 and DUT04 bonds on the Vienna Stock Exchange Third Market and delist the DUT02, DUT03 and DUT04 bonds from the Ljubljana Stock Exchange organized stock market is to allow the applicability of the third paragraph of Article 4 of the Act Defining the Measures of the Republic of Slovenia to Strengthen Bank Stability (ZUKSB), which stipulates that BAMC shall not include in its consolidated annual report the companies whose equity stakes or shares it had acquired by means of purchase/compensated acquisition of bank assets, or as part of corporate restructuring as per the first paragraph of Article 10a of the ZUKSB.

Notice regarding a change of the BAMC Articles of Association2.8.2016

​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 5 May 2016, the Government of the Republic of Slovenia as the General Meeting of Družba za upravljanje terjatev bank, d. d. (BAMC) mandated the BAMC Board of Directors to make all arrangements necessary to increase the share capital of BAMC and adopt the relevant changes to the Articles of Association.

Acting in accordance with the decision of the Government of the Republic of Slovenia, the company made the arrangements to register the capital increase in the register of companies, which was performed on 4 July 2016; and register the amended Articles of Association of BAMC in the register of companies, which was done on 27 July 2016.

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

BAMC has so far recovered almost a third of the value of transferred assets31.5.2016
After completing asset takeovers from banks undergoing measures to strengthen the stability of banks and concluding the process of setting up the organization in 2014, BAMC focused on managing the transferred assets in 2015.  Cash generated from asset management in 2015 amounted to €356,2 million representing 22,0% of asset transfer value and thus highly exceeded the ZUKSB requirement of yearly liquidation of at least 10% of assets. From inception, BAMC thus generated €493,5 million of cash, meaning that almost one-third of transferred assets’ value was cashed.

BAMC’s core business is managing non-performing assets, mostly NPLs. Thus, BAMC’s operating and financial expenses have to be covered by realized capital gains and revaluation income in order to generate profit. BAMC recorded a net loss of €8,3 million in 2015. Hence, BAMC has not achieved the required 8% return on equity as required by the Guidelines on the Operations of the Bank Assets Management Company.  The loss was the result of revaluations, as income from the increase in the fair value of assets due to revaluation was insufficient to cover all financial expenses and operating costs, despite the positive result of transactions. While realized inflows were mostly in line with expectations, the main difference to previous valuations originated in the lower and more distant estimation of cash flows from the remaining portfolio in future years as a result of economic, investor sentiment and other related factors.

Regardless of the net loss and equity decline in 2015 BAMC has, since its inception, increased the equity value by 20% compared to equity fair value after the takeover of assets from the four state-owned banks which includes the return of capital to the owner in various forms. The economic return on equity (EROE) indicator that takes into consideration also the return of capital to the owner, and therefore more appropriately and comprehensively measures BAMC’s performance, thus stands at an average yearly return on equity of 11.4% for the each of the two years of operations of BAMC.

In accordance with Article 15 of the ZUKSB, BAMC published a BAMC Report to the National Assembly of the Republic of Slovenia for the year 2015.
Notice of merger30.5.2016
In accordance with the Rules of Ljubljanska borza, d.d., Ljubljana, and applicable law, Družba za upravljanje terjatev bank, d.d. (“DUTB”), Davčna ulica 1, Ljubljana, hereby makes the following announcement:

On 23 May 2016, the following four subsidiaries were merged into DUTB: FACTOR-IN d.o.o.; FACTOR PROJEKT d.o.o.; PROBANKA LEASING d.o.o.; and PROBANKA NEPREMIČNINE d.o.o. All four companies were erased from the court commercial register as a result of the merger and at the same time all rights and obligations associated with the absorbed companies passed onto DUTB as the legal successor.

This notice will  be posted on the website for 5 years following the date of publication.
DUTB

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