On April 15, Vseobecna Uverova Banka (VUB) will float an issue of ten-year mortgage-backed bonds, totaling SKK 1 billion. Par value of the security is SKK 100,000. Bonds will bear a fixed coupon of 5 to 6 percent p.a. VUB will specify the coupon in seven days before floating the issue, bank representatives informed SITA.

This is the seventh issue of mortgage-backed bonds to be floated by VUB. Investors can buy them three months from the issue date for 100 percent of par value. The coupon will be paid annually and the principal will mature on April 15, 2013. The mortgage-backed bond will be issued in a book-entry form and its transferability will not be restricted. The security should be accepted on the listed bond market on the Bratislava Stock Exchange (BCPB).

VUB bank provided SKK 2.59 billion in mortgages in 2002, which is two-thirds more than last year. VUB granted 3,873 mortgages. Since 1997 when VUB introduced mortgage lending it has granted 7,946 mortgage loans to be drawn at an aggregate volume of SKK 5.355 billion.

Italian IntesaBci is the majority shareholder in VUB, controlling 94.5 percent in the bank. IntesaBci signed the purchase contract on a majority stake in VUB on July 4, 2001.