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S&T Issues EUR 15 Million Corporate Bond to Finance Further Acquisition

Under the lead management of Raiffeisen Zentralbank Österreich AG, S&T has issued a corporate bond with a total volume of EUR 15 million and a maturity of seven years. The bond will bear a fixed rate of interest of 4.375% over its life, reflecting S&T's excellent credit rating.

"S&T's successful development in recent years has been characterised by vigorous expansion. The issue is a perfect solution for S&T in a number of respects: it safeguards the next steps of our expansion strategy, improves the balance sheet structure and significantly reduces both the risk of interest rate fluctuations and the liquidity risk," says Martin Bergler, CFO of S&T, summing up the advantages for the company.

The bond was settled on 7 April 2005 and will be used to cover short-term liabilities until it is required for acquisitions. This optimises interest payments while leaving the structure of net debt unchanged on the balance sheet.

Christian Säckl, head of RZB Investment Bank is delighted that S&T has taken this step. "There has been a strong rise in demand for Austrian corporate bonds in recent months. RZB is therefore planning to issue an Austrian Corporate Bond which will bundle successful Austrian companies such as S&T and place them with investors in the form of a Credit Linked Note," Christian Säckl says.