Successful completion of the sale of the second issue of bonds

Pursuant to the provisions of the Rules of the Ljubljana Stock Exchange d.d. and ZTVP-1 (Official Gazette of the Republic of Slovenia, No. 56/99), KD Group, d.d., Ljubljana, hereby issues the following announcement:

Pursuant to the provisions of the Rules of the Ljubljana Stock Exchange d.d. and the ZTVP-1-UPB1 (Official Gazette of the Republic of Slovenia, No. 26/2005), KD Holding d.d., Ljubljana, hereby issues the following announcement:

The Management Board of KD Holding, finančna družba, d.d., Ljubljana (hereinafter: KD Holding) hereby informs the public that, in cooperation with Abanka Vipo d.d. (hereinafter: Abanka), which organised and managed the sale, has successfully completed the sale of the second issue of KD Holding bonds (hereinafter: the bonds).
The bonds will be issued via a private placement, as provided for in point 2 of paragraph 1 of Article 18 of the ZTVP-1-UPB1. Bonds with a total nominal value of EUR 40,000,000.00 were purchased by 23 investors on the basis of binding purchase commitments. Abanka is acting as adviser, organiser and underwriter for the bond issue.
The purpose of the bond issue is to finance KD Holding’s ongoing operations, including the establishment of a specialist life insurance company in South-Eastern Europe (expected to operate in the markets of Croatia, Romania and Bulgaria), further expansion in the cinema sector (construction of a mixed-use commercial and residential development in Ljubljana, which will also include a multiplex with several cinema screens), financing the recapitalisation of strategic investments abroad (asset management companies, brokerage firms), financing the recapitalisation of financial investments (Slovenica) and the establishment of a private equity fund, which, following the disposal of those assets where KD Holding is unable to actively manage them due to insufficient ownership, is intended to become the vehicle for KD Holding’s investment activities.
The bonds, maturing on 25 October 2015, carry a fixed interest rate of 4.85 per cent and were sold at 96.65 per cent of their nominal value, representing a yield to maturity of 5.29 per cent per annum. The subscription and payment for the bonds were completed by 25 November 2005; after that date, the issuer commenced procedures for the registration of the bonds in the central register of the Clearing and Depository Company. The issuer intends, as soon as possible after obtaining authorisation from the Securities Market Agency, to list the bonds on the organised market of the Ljubljana Stock Exchange.

From 28 November 2005 until further notice, the company will also publish this notice on its website www.kd-group.si under ‘Notices’ in the ‘Public Announcements’ section.



KD Holding d.d.
Management Board