BAM strengthens capital base
Bunnik, 31 May 2005 – Royal BAM Group has reached agreement with banks regarding early repayment of the subordinated loan of € 100 million taken out in September 2003 and the simultaneous taking out of a new subordinated loan of € 150 million.
The new subordinated loan strengthens the Group’s capital base, has a longer period to maturity (it runs until June 2011 instead of September 2008) and has better interest conditions (EURIBOR +2.8% instead of EURIBOR +5% on the previous loan).
An initial repayment of € 25 million was already due on the € 100 million loan in September 2005. The initial repayment on the new loan is in the amount of € 75 million and is due in June 2010.
As a result of the aforementioned transactions the capital base at year-end 2005 will have increased by approximately € 75 million with a consequent increase of approximately 1.6% in the capital ratio based on the (increased) IFRS balance sheet total.
For more information:
- Press: A.C. Pronk, +31 (0) 30 659 86 21
- Analysts: P. Verbraeken, +31 (0) 30 659 88 56