GO-HEAD TO CAPITAL INCREASE OF CREDITO VALTELLINESE
Sondrio, Fri. February 20, 2004 - In accordance with the resolutions adopted by the Extraordinary General Meeting held on November 15 last year and after go-ahead from CONSOB to the publication of an informative prospectus the convertible bond issue 'Credito Valtellinese 2004-2007' will be officially launched on March 1, 2004.
The Bond issue now launched will be used to implement the business growth strategy of the parent bank through increases in the main balance-sheet aggregates and a further development of its banking network, as well as of the whole Group, by raising the necessary finance in the years to come.
Bond-offering calendar
Significant increases are expected in net profits for the parent bank while the Group's consolidated results are expected to remain in line with the year ended December 31, 2003.
Details of the prospectus are as follows:
- a new ordinary share is being offered to holders of Credito Valtellinese shares for every 8 shares held. Issue price is € 6.90, of which € 3.00 nominal value and € 3.90 as paid-in surplus. € 0.10 will be paid as refunding of expenses for each newly subscribed share up to a maximum refunding amount of 150 euros. Start of dividend entitlement on January 1, 2004.
- Below are the main characteristics of the bond issue:
Three-year convertible bond issue, of which total amount is around € 293,665,000. Bonds will be offered to holders of Credito Valtellinese shares on the basis of 1 bond (nominal value € 1,000) for every 200 shares held; the Board of Directors of Credito Valtellinese has fixed the annual pre-tax nominal rate of return on convertible bond issue 'Credito Valtellinese 2004-2007' at 2.8%.
Subscription period
March 1 - April 16, 2004
Dealing period
March 1 - April 6, 2004
Bond issue results
within April 21, 2004
Expected results for parent bank and the Group
Credito Valtellinese's results compared with the end of 2002 are as follows: sums receivable from customers recorded + 9%, direct deposits + 11%.
Details of the consolidated balance sheet are as follows: sums receivable from customers have recorded an increase by 11 percent compared with the previous year, direct deposits an increase by 10 percent and net commissions on transactions by 11 percent.
Budget forecasts for 2004 showed increases in net profits for both Credito Valtellinese and the banking Group. Particularly, sums receivable from customers and deposits are expected to increase significantly.
Spreads are expected to remain unchanged while net commissions on transactions are expected to show even stronger increases than they did in 2003.
