Tatra Banka Plans to Float SKK 500 Mln. Mortgage-Backed Bond

Tatra Banka, a.s. is planning to float an SKK 500 million (SKK 16.6 million) issue of mortgage-backed bonds. The par value per bond is SKK 100 (SKK 3,300). The bank will be issuing the bonds for an estimated one-month period from November 27. The bonds will bear a fixed interest of 5.33 percent p.a. Tatra Banka will pay interest annually on May 7, whereby the par value of bonds will mature on May 7, 2010.

Bonds will be issued only to investors who pay the issue price and respective aliquot part of the interest as of the day set by the bank. The issue price has been set at 90 - 110 percent of the par value. The bonds will be issued as a bearer security in a book-entry form. The bank will use money from repayment of provided mortgages or from reserve coverage for bonds’ redemption. The bank will not apply for admission of the bond for trading on the Bratislava Stock Exchange (BCPB) nor at any other stock exchange.

The majority shareholder in Tatra Banka is Raiffeisen International Bank – Holding AG with a 72.4-percent share of voting rights. Tatra Holding controls 14.1 percent and the remaining stake is in the hands of small shareholders.