Erste Group pays back entire participation capital

Today, Erste Group Bank AG fully repaid the participation capital issued in 2009 in the amount of EUR 1.76 billion, whereof EUR 1.22 billion subscribed by the Republic of Austria and EUR 540 million subscribed by private investors. 

From 2009 to 2012 the Republic of Austria received annual dividend payments worth EUR 98 million from Erste Group and private investors received EUR 43 million. Altogether, including the pro rata dividend for 2013, which will be paid in June 2014 once the general shareholders’ meeting passes the respective resolution, the Republic of Austria will receive a total of EUR 448 million and private investors a total of EUR 198 million.

“We have a lot of respect for the Austrian federal government, which five years ago took swift action, and we would also like to thank Austrian taxpayers and private investors that kept their faith in us,” stated Andreas Treichl, CEO of Erste Group. “The 8% dividend was a really good deal for all investors and tax payers”.

The participation capital was issued in 2009 in order to enable Erste Group to remain a strong partner for its clients even in times of economic crisis. In the meantime, Erste Group has substantially strengthened its capital base and already meets all regulatory requirements.