Market Update SNS REAAL
Monday, January 28, 2013
In light of the many reports on SNS REAAL in the past week, SNS REAAL hereby gives a brief update of the current situation.
As SNS REAAL announced earlier, it is exploring scenarios aimed at finding a comprehensive solution for the enhancement and simplification of its capital base and the reduction of credit risks at Property Finance, whether or not by a split-off of the Property Finance activities. In all scenarios, estimates of parties concerned on future increasing losses at Property Finance play an important role. The estimate of the extent of future losses at Property Finance is dependent on factors such as expectations about economic developments, further declines in property values and interest rate developments.
The efforts of SNS REAAL are focused on a scenario that involves the participation of private investors. This scenario includes a significant share issue and transactions with regard to outstanding subordinated instruments are anticipated. At this time it is unclear whether this scenario is feasible. No decisions have been taken yet.
