BUWOG AG concludes refinancing of its 2019 convertible bond:

• Mortgage loans of EUR 330 million and average interest rate of around 1.8% on an average weighted term of 25.5 years signed with two leading Austrian banks
• Call option exercised on 2019 convertible bond with volume of EUR 260 million and coupon of 3.5%
• Rise in Recurring FFO of more than EUR 3.0 million p.a. expected
• Average interest rate of around 2.4% on total loan portfolio with average remaining term of around 17 years

Vienna, 19 December 2014. After signing mortgage loan agreements with two leading Austrian banks with a total volume of EUR 330.0 million, BUWOG AG will repay its 2019 convertible bond (ISIN AT0000A17CA5) by exercising its hard call option in accordance with the terms and conditions of the bond at 101% of its nominal value of EUR 260 million, effective 19 January 2015.

The mortgage loans have an average weighted nominal interest rate of around 1.8%. Compared to the financing with the existing convertible bond, this marks an interest advantage of approximately 1.7%-points after average weighted interest hedging of the mortgage loans at 72.7%. One-time costs of EUR 4.9 million will be incurred in the current financial year in connection with the registration of the underlying collateral and processing.

"The current interest environment allows us to refinance the convertible bond at low cost with mortgage loans. Thus, we achieve a significant improvement of our Recurring FFO. The financing structure of BUWOG AG remains extremely conservative and this method of replacing the convertible bond is the best solution for our shareholders as there will be no dilution effects," said CFO Ronald Roos.

The average weighted term of the new mortgage loans is 25.5 years. As a result of this and after further interest rate hedges to be concluded shortly, the average term of the financial liabilities of the BUWOG Group will rise to around 17 years with an average interest rate for all financial liabilities of the BUWOG Group of around 2.4%. The financing structure of the BUWOG Group will then be approximately 86% hedged against interest rate risks by way of fixed-interest agreements and interest rate swaps.

After the replacement of the 2019 convertible bond, BUWOG AG is anticipating a cash improvement in its financial result of more than EUR 3.0 million per year, which will also have a corresponding effect on the company's Recurring FFO. BUWOG AG is therefore completing another important step in the optimisation of its Recurring FFO profile, which is already implemented with the strategic positioning of the company.


About the BUWOG Group

The BUWOG Group is the leading German-Austrian full-service provider in the residential property sector, and has experience going back around 60 years. It is today one of the most important players also on the German market. In total, the BUWOG Group has a high-quality portfolio of around 52,500 apartments (around half each in Austria and Germany). As a property developer, it has so far been responsible for the construction of more than 35,000 apartments in Austria alone. The shares of BUWOG AG are listed on the Frankfurt, Vienna and Warsaw stock exchanges.

For further information please contact:

Investor Relations:
Holger Lüth
BUWOG AG
T +43 (0) 1 87828 1203
investor@buwog.com


Media enquiries Germany:
Nikolaus von Raggamby
RUECKERCONSULT
T: +49 (0)30 2844 987 - 40
vonraggamby@rueckerconsult.de


Media enquiries Austria:
Thomas Brey
LUSTIG+BREY
T +43 (0) 1 233 01 23 15
M +43 676 542 39 09
brey@lustigbrey.at