Abanka Vipa d.d. hereby publishes the following announcement:

 International ratings agency Fitch Ratings affirmed the following ratings of Abanka: Long-Term Foreign Currency IDR at 'B-' with negative Outlook, Short-Term Foreign Currency IDR at 'B', Support Rating at '5' and Support Rating Floor at 'B-'. The Viability Rating was assigned at 'cc' and Hybrid capital instrument (ISIN code: XS0283183084) at 'C'.

 In Fitch view Abanka needs additional capital. The capital position of the bank could be negative influenced by further deterioration in the asset quality due to the weak operating environment in Slovenia.  

The Bank implemented a number of internal measures in 2012 that had a positive impact on its capital adequacy indicator, which stood at 9.65% as at 31 December 2012. The Bank has continued intensively this year with measures that include the adaptation of its credit activities, the sale of equity investments, the reduction of operating expenses and the improvement of its internal governance.

On the propose of the Management Board new General Meeting will be held on 08 April 2013 to adopt a decision on the increase of the Bank’s capital under conditions that lead the Management Board and Supervisory Board to assess that the Bank will successfully strengthen its capital. A capital increase in the amount of EUR 90 million is proposed at a price of at least EUR 1 per share with the exclusion of the pre-emptive right of existing shareholders. In addition to existing shareholders, other investors that have or will demonstrate interest will be invited to subscribe to new shares.

The Management Board and Supervisory Board assess that Abanka, which is decreed to be significant to the Slovenian banking system, will achieve its strategic objectives through additionally secured capital, a stable operating profit and all proposed measures.

This announcement in English is of an informative nature.

This announcement will also be published on Abanka Vipa d.d.'s website (www.abanka.si) as of 08 April 2013, and will be accessible for a period of no less than five years.

.