OVAG Finance: €32.63 million of preferred securities maintain no value

By Kali Hays

New York, Jan. 15 – OVAG Finance (Jersey) Ltd. said that it expects zero redemption value to be available from €32.63 million of fixed/floating-rate preferred securities in upper tier two capital issued by Osterreichische Volksbanken-AG, according to a Wednesday release.

The amount of supplementary capital of Osterreichische, which is held by OVAG, “exceeds the amount of the securities’ nominal value and as no future profits are to be expected in the wind down-unit there is no potential to decrease allocated net losses through theoretical future profits.”

Under Osterreichische’s current demerger plan, its supplementary capital combined with other equity capital will remain in “the future wind-down unit until after completion of the demerger,” according to the release.

The release went on to say that management of OVAG expects that the redemption value of all issued preferred securities could also be zero.

OVAG is based in Vienna, Austria.

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