UniCredit Group ("UCG") announces that a binding agreement to transfer Ukrsotsbank ("USB") into Alfa Group has been signed.

The transaction structure envisages UCG to contribute its exposure in USB to ABH Holdings S.A. ("ABHH" - a privately owned Luxembourg-based holding company investing into several banking activities in the CIS) in exchange for newly issued shares representing 9.9% stake of ABHH post transaction. UCG will appoint one Board member of ABHH and will have customary protection rights, including the possibility to cause an IPO of ABHH or to sell its stake to ABHH on the 5th anniversary after the Closing.

UniCredit are going to cede direct ownership of Ukrsotsbank and to become shareholders of a diversified banking group in the Commonwealth of Independent States (CIS) instead. With the planned transaction, subject to the consent of regulatory authorities, UCG is reducing its Ukrainian business risk and optimizing future capital allocation. Bank Austria and UniCredit will cooperate with ABHH in order to support their banking customers in Ukraine also in the future.

The signing of the agreement is expected to lead to an extraordinary charge in UCG 4Q15 P&L of ca. € 200 million, as net result of the disposal. At the closing of the transaction, the cumulative currency effects amounting to approximately minus €652 million (as of today) will be reported in the P&L. The latter will not affect the regulatory capital of UCG. At closing, benefiting of the related reduction of the risk weighted assets, the transaction has a substantial neutral impact on the CET 1 ratio of UCG.

As the next step, the parties will be seeking the necessary regulatory approvals. The closing of the transaction is expected to happen in 2016.

UCG is being advised by Rothschild and UniCredit Corporate & Investment Banking.

Date: 13.01.2016