Specialist bank presents its 2006 accounts: Continuing success of Mezzanin Finanzierungs AG
- Positive earnings from ordinary business activities – dividend payment a year earlier than planned
- Already some 50% of the enquiries about mezzanine capital come from the rest of the EU
Mezzanin Finanzierungs AG, Austria's first specialist bank for mezzanine capital, which was only founded in 2002, has again made a profit in financial year 2006. In concrete terms, Mezzanin has presented earnings from ordinary business activities of just over EUR 3 million – which equals the figure it achieved last year. This constant positive performance is attributable to its success in building up its investment portfolio and the outstanding economic situation enjoyed by some of its clients, which were able to repay mezzanine capital prematurely thus incurring a corresponding redemption premium.
2005 brought break-even, while 2006 brought the first dividend payments
Johann Toth, CEO of Mezzanin AG: "This extraordinarily positive business development allows us to pay dividends to our shareholders a year earlier than planned." Previously the specialist bank was able to offset the model-related start-up losses of the first three years with a profit as early as 2005 – a year earlier than planned. Mezzanin AG's total assets currently stand at EUR 33.6 million (+2.8% on the previous year), net interest income stands at some EUR 4.5 million (+ 0.5%), while loans to clients amount to EUR 31.7 million. The shareholder structure of Mezzanin AG consists of a number of institutional investors. The majority shareholder is Bank Austria Creditanstalt (BA-CA), which currently holds 57%. The remaining 43% is held by seven well-known Austrian insurance companies and the 3 Banken Group.
Demand continues unabated in 2006
Demand for mezzanine debt has continued unabated in the past year. In 2006, Mezzanin AG transacted investments and a follow-up financing totalling EUR 10 million. A further EUR 3 million is already committed. The Bank was able to expand its presence in the rest of the EU: "Just over half of all enquiries already come from the rest of the EU. These credit enquiries have more than doubled compared with 2005. According to Toth, the strongest demand continues to come from the Czech Republic, Germany and Slovakia.
Mezzanin Finanzierungs AG
Mezzanin Finanzierungs AG is Austria's first specialist bank for mezzanine capital. Its fund volume amounts to EUR 100 million, of which some 57% has been committed so far. Mezzanin AG finances acquisitions in the form of corporate takeovers, management buy-outs, buy-ins and succession arrangements as well as investment projects related to expansion, investment and project finance.
Mezzanine capital is provided in the form of subordinated, unsecured bullet loans, which cannot be called in if borrowers' finances deteriorate, to small and medium sized companies in Austria and the rest of Europe (particularly neighbouring countries, namely Germany, the Czech Republic, Hungary, Slovakia and Slovenia).
For financing banks, the capital of Mezzanin AG represents economic equity and therefore helps to reinforce the credit rating of mezzanine-financed clients. Mezzanin AG receives support from BA-CA Private Equity GmbH in marketing, controlling and fundraising.
You can obtain more detailed information from:
Johann Toth, CEO
Mezzanin Finanzierungs AG
Tel: +43 (1) 513 41 97;