KBC to pay coupon on hybrid tier-1 securities, ...

In  June  1999,  KBC  Bank  issued  perpetual  non-callable   10-year
preferred securities  through KBC  Bank Funding  Trust II  worth  280
million euros  (ISIN code  XS0099124793).  These securities  carry  a
coupon of 6.875% and qualify as hybrid tier-1 bank capital.  Although
KBC did not pay a dividend on its ordinary shares in 2009, it intends
to pay the coupon on the preferred securities on the next coupon date
of 30 June 2009. However, KBC has decided not to exercise its  option
to redeem the securities on that date.

In accordance  with  the  offering memorandum,  the  coupon  for  the
securities will be adjusted after the call date to a floating rate of
300 basis points above the 3-month  EURIBOR, payable in arrears on  a
quarterly basis. In light of changing market conditions, KBC  intends
to review  the possibility  to  call the  securities on  a  quarterly
basis.

KBC has not yet taken a decision  on its call option for two  similar
transactions issued  by  KBC Bank  Funding  Trust III  and  KBC  Bank
Funding Trust IV and whose first call date is in November 2009.

KBC  is  fully  aware  of  investors'  preferences  regarding  hybrid
securities and will actively follow up the process of exercising call
options applicable  to  such  securities. The  decision  to  call  is
subject to the opinion of the CBFA (the Belgian financial regulator).
Any call notice  will be given  at least  30 days prior  to the  call
date.


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.