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RBI to absorb unlisted parent

The management and supervisory boards of andunlisted parent RaiffeisenZentralbank Österreich AG passed in principle a resolution tomerge RZB into RBI.

The transaction includes RZB's functions as the centralinstitution of the Austrian Raiffeisen Banking Group, as well as its equityparticipations, excluding the planned sale of its stake in . RBI saidOct. 5 that the final exchange ratio for the merger is still to be determinedand must be approved by an independent court-appointed merger auditor underAustrian merger law.  

The merged company will continue to be listed on the stockexchange and will have a pro forma fully loaded common equity Tier 1 ratio of11.3% as of June 30 RBI's financial targets, including a fully loaded CET1ratio of at least 12% by 2017-end and a consolidated ROE of about 11% in themedium term, will remain unchanged following the merger.

RBI's free-float percentage is expected to be between 34.6%and 35.7% following execution of the transaction, compared to 39.2% previously.

An extraordinary general meeting of RBI shareholders will beheld Jan. 24, 2017, to seek approval of the merger from a majority of at least75% of the bank's share capital present at the meeting. The documents neededfor the merger vote will be released by Dec. 23.