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29.09.06

EIB launches its first ever BGN Floating Rate Note — RZB and Raiffeisenbank (Bulgaria) EAD Lead Managers.

The European Investment Bank (EIB), the European Unions long term financing institution, rated Aaa/AAA/AAA (Moodys/Standard and Poors/Fitch), has launched its first floating rate note in Bulgarian leva (BGN).

The issue was launched under EIBs Euro Medium Term Note programme and has a volume of BGN 150 million (approximately EUR 77 million) with an issue price of 100.00% The bond bears a coupon linked to the BGN 3M SOFIBOR and matures on 20 October 2009. The transaction is jointly arranged by Raiffeisen Zentralbank Osterreich AG (RZB) and Raiffeisenbank (Bulgaria) EAD.

Richard Teichmeister, Deputy Head of Funding in Europe (excl.) and Africa at the EIB, commented: After the favourable reception for our first BGN issue in 2005 both by domestic as well as international investors, we saw an opportunity to widen the array of products offered to investors in the Bulgarian leva market with this Floating Rate Note. This issue is a testament to EIBs commitment to responding to investor needs.

Patrick Butler, RZB Board Member responsible for Treasury/InvestmentBanking and Financial Institutions& Sovereigns, said:This is the first ever international Floating Rate Note denominated in Bulgarian Leva for the EIB. The RZB Group is delighted to sole-Lead-manage a pioneering deal for this supranational Aaa/AAA/AAA-rated issuer. This is not the first time we have opened up a new market in Central and Eastern Europe with an imaginative, top-notch borrower like EIB, nor will it be the last.



Summary terms and conditions for the new bondissue



Issue AmountBGN 150 million (EUR 76.7 million)
Pricing Date25 September 2006
Settlement Date20 October 2006
Maturity Date20 October 2009
Issue Price100.00%
CouponBGN 3M SOFIBOR
FormatFRN issued under EIBs EMTN programme
ListingLuxembourg
Clearing SystemClearstream

Martin Grell, CFO of Raiffeisen International Bank-Holding AG, added:We have a close co-operation with the EIB in Bulgaria on the funding side of the business. The present bond shows that our subsidiaries have also capacity to serve its partners in the capital markets.



EIBfunding strategy and results



The Banks funding strategy combines a consistent and transparent approach with flexibility and innovation, both in terms of product and maturity. EIBs total borrowing plan for 2006 is EUR 50 billion, of which around EUR 37 billion have been raised year-to-date.

Background information on EIB

The European Investment Bank, based in Luxembourg, was set up in 1958under the Treaty of Rome. Owned by the European Union Member States, theEIB is the EUs long-term lending institution, financing projects that promote European economic development and integration. Besides supporting projects in the Member States, its main lending priorities include financing investments in future Member States of the EU. The EIB operates on a non-profit maximising basis and lends at close to the cost of borrowing. The Banks consistent AAA rating is underpinned by firm shareholder support, a strong capital base, exceptional asset quality, conservative risk management and a sound funding strategy.

www.eib.org/investor_info

Background information on RZB

Raiffeisen Zentralbank Osterreich AG (RZB) is the central institution ofthe Austrian Raiffeisen Banking Group, the country''s largest bankinggroup. It is a leading corporate and investment bank in Austria and alsoconsiders Central and Eastern Europe (CEE) as its home market. Viasubsidiary Raiffeisen International Bank-Holding AG, it operates one ofthe leading banking networks in CEE with subsidiary banks and financeleasing companies in 16 markets. More than 11 million customers areattended to through more than 2,700 business outlets. In eight markets,the respective Network Bank ranks among the three largest local banks.Representative offices in Lithuania and Moldova complement the group''spresence in the region. Raiffeisen International''s shares are traded onthe Vienna Stock Exchange. RZB owns 70 per cent, the balance isfree-float.

RZB''s balance-sheet total amounted to 103.2 billion at 30 June 2006, 10 per cent more than at year-end 2005. Pre-tax profit was up 34 per cent against the first semester 2005 and amounted to 579.0 million.

www.rzb.at

www.ri.co.at

 

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