In accordance with the Rules of Ljubljanska borza, d.d., Ljubljana, and applicable law, Družba za upravljanje terjatev bank, d.d. (“BAMC”), Davčna ulica 1, Ljubljana, hereby makes the following announcement:

On 20 October 2014, BAMC issued government-backed bonds with a total face value of EUR 424,600,000 and maturity date set on 15 December 2017.

BAMC used the issued bond to pay for the non-performing assets acquired from Abanka Vipa d.d. based on the Agreement on Implementation of Measures to strengthen the Stability of the Bank dated 13 October 2014.

On 20 October 2014, the bonds were issued in dematerialized form by registration to the KDD (Central Securities Clearing Corporation, d.d., Ljubljana) accounts held by the bond holders, in compliance with the KDD rules. Pursuant to Item 4 of the first paragraph of Article 41 of the Financial Instruments Market Act (Official Gazette of the Republic of Slovenia, No. 108/2010, as subsequently amended; hereinafter referred to as “ZTFI”), the bonds are exempt from the provisions of Chapter 2 of the ZTFI, which regulates public offer of securities.

The key characteristics of the newly issued BAMC bonds designated DUT03 are as follows:

• The principal shall mature for payment on 15 December 2017.
• The interest is to be paid on a semi-annual basis, with the first payment on 15 December 2014, followed by each subsequent 15 June and 15 December. The final interest payment shall have the same maturity date as the principal, namely on 15 December 2017.
• The total nominal value of the entire bond issue is  EUR 424,600,000.
• The fixed interest rate is set at 1.5% per year.
• Settlement of liabilities and obligations pertaining to the bonds issued is guaranteed by the issuer, against the issuer's entire assets. Settlement of liabilities and obligations pertaining to the notes is also irrevocably and unconditionally guaranteed by the Republic of Slovenia.

The information included in this announcement will also be available at the official website of the company, at www.dutb.eu, for a period of 5 years from the date of announcement.

                                                      BAMC