SNS REAAL : SRLEV postpones coupon payment at the request of the EU

The European Commission has decided not to allow SRLEV N.V. (SRLEV) to pay the coupon due on the Bonds on the next interest payment date. Therefore, SRLEV must make use of its optional deferral right based on Condition 4(e) of the Term and Conditions not to pay such coupon.

SRLEV has issued €400,000,000 subordinated bonds due 2041 in April 2011 under the ISIN code XS0616936372 (the Bonds), the terms and conditions of which are set out in a prospectus dated 12 April 2011 (the Terms and Conditions). The European Commission has recently decided not to allow SRLEV to pay the coupon due on the Bonds on the next interest payment date, i.e. 15 April 2013. Therefore, SRLEV must make use of its optional deferral right based on Condition 4(e) of the Terms and Conditions not to pay such coupon.

On 1 February 2013, the Dutch State nationalised SNS REAAL N.V. (SNS REAAL), the ultimate holding company of SRLEV and officially notified a number of State aid measures in favour of SNS REAAL to the European Commission. On 22 February 2013 the European Commission approved of the State aid measures with the provision that a hybrid debt call and coupon ban applied. Consequently, SNS REAAL is to refrain from making any payments on hybrid debt instruments, unless those payments stem from a legal obligation, and not to call or buy back those instruments without prior approval of the European Commission.

Since the interest payment by SRLEV due on 15 April 2013 is not compulsory based on the Terms and Conditions, the European Commission does not allow SRLEV to pay this coupon. Pursuant to Condition 7 of the Terms and Conditions, such non payment of the coupon will not constitute an event of default. Unpaid interest shall as long as it remains unpaid constitute arrears of interest and shall bear the same rate of interest as is payable on the Bonds.

For more information please contact