3.10.2005 | Austria

S&T Issues 2nd Corporate Bond

Continuation of Expansion Strategy

S&T System Integration & Technology Distribution AG is issuing a second corporate bond worth EUR 10 million as part of a BA-CA "basket bond", assuring financing for further acquisitions.
Together with three other Austrian companies from different industries (all acting as independent issuers) S&T is offering a public bond with a life of 7 years bearing a fixed rate of interest of 4% p.a. as part of a basket bond. This reflects the excellent credit rating of the four participating companies. The total volume of this basket bond amounts to EUR 30 million, EUR 10 million of which is being raised by S&T.

"Together with the bond issued in April of this year, this bond will provide the capital for further acquisitions as part of our expansion strategy without exposing us to the fluctuations of the credit market and the possible impact of Basel II", Martin Bergler, CFO of S&T emphasized.

As announced earlier by BA-CA, the funds were allocated on September 30th, 2005. Until they are used for acquisitions, the funds will be used to cover short-term liabilities. This will optimize interest payments while leaving the structure of borrowed capital unchanged on the balance sheet.
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