KBC Group : KBC successfully priced its inaugur...

Press Release - Outside trading hours - Regulated information*

Brussels, 3 December 2012
  
KBC launched today a highly successful Mortgage Pfandbriefen benchmark issue in EURO, being the inaugural benchmark covered bond issue from KBC.

The Euro 1.25 Billion covered bond issue will mature on 11 December, 2017 and bear a coupon of 1.125 % per annum payable annually. Pricing was at a reoffer spread over euro mid swaps of 30 basis points resulting in an issue price of 99.638%.
Joint bookrunners were  DEUTSCHE BANK, DZ BANK, GOLDMAN SACHS, KBC and NATIXIS.

On 19 November 2012 KBC publicly announced its intention to launch an inaugural issue backed by Belgian residential mortgages. This was followed by an extensive communication process followed by a pan European investor's roadshow to institutional investors from 22 till 28 November 2012.

The issuance was extremely well received in the market as it offers geographical diversification to covered bond investors, particularly with Belgium being the latest European country to adopt a covered bond legislation. The covered bonds are rated Aaa/AAA by Moody's and Fitch and are UCITS and CRD compliant.
The covered bond benchmark issue will further strengthen KBC's name and credit story in the bond markets as a leading issuer in the Belgian market. It also gives KBC the opportunity to further diversify its investor base and long-term funding mix and resources through covered bonds.

Distribution

The orderbook reached EUR 5.2 billion with 200 investors involved.  

Geographical distribution was well spread across Europe, with geographical demand (after allocation) split up as follows : Germany/Austria (43%), Benelux (20%), Nordics (12%), France (11%), UK (8%), Switzerland (3.%), Southern Europe (1%), other (2%)

In terms of different types of investors (after allocation), banks were the most active investors (48%), followed by Asset Managers (36%), Central Banks (3%), Insurance (3%), Pension fund (4%), and others (6%).

For further information, please contact:

Wim Allegaert, General Manager, Investor Relations, KBC Group
Tel [phone] E-mail [e-mail]
Viviane Huybrecht, General Manager, Group Communications/Spokesperson, KBC Group
Tel [phone] E-mail [e-mail]

Important Information

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Covered Bonds, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.

This announcement is not for distribution, directly or indirectly in the United States of America, Canada, Japan or Switzerland, or any other jurisdiction where distribution would not be permitted by law. The Covered Bonds will not be offered in the United States of America.

No announcement or information with respect to the Covered Bonds may be distributed to the public if the applicable legal requirements have not been complied with. KBC Bank is not responsible for non-compliance of applicable legal requirements by other persons.

* This news item contains information that is subject to the transparency regulations  for listed companies.

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

Covered Bonds Pricing

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Source: KBC Groep via Thomson Reuters ONE

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