EQS-Adhoc: Press release: Leonteq and Raiffeisen extend cooperation in the area of structured products
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EQS-Ad-hoc: Leonteq AG / Key word(s): Agreement PRESS RELEASE | LEONTEQ AND RAIFFEISEN EXTEND COOPERATION IN THE AREA OF STRUCTURED PRODUCTS Zurich, 02 February 2022 | Ad hoc announcement pursuant to Art. 53 LR Leonteq AG (SIX: LEON) and Raiffeisen Switzerland Cooperative (Raiffeisen) announced today that they are extending their existing cooperation agreement in the area of structured products, which will run until 2026, by four years to 2030. In addition, they have refocused their cooperation and terminated the existing credit facility to take account of developments within the two companies to date. As part of the strategic strengthening of its business, Raiffeisen is further expanding its pension and investment activities. In this context - and in addition to its cooperation with Leonteq - Raiffeisen plans to begin issuing, hedging and distributing some of its structured products itself via a new Raiffeisen platform in the second half of 2022. Leonteq will ensure that the new Raiffeisen platform is connected to Leonteq's existing service and technology platform. The extension of their cooperation until March 2030 is subject to the successful implementation of the technological connection by the first quarter of 2023. Leonteq expects its annual net fee income to decrease by around 1% as a result of changes to the cooperation agreement and thus no material financial impact. At the same time, Leonteq will be able to further increase the proportion of its balance sheet-light business, in line with its strategic ambition. Termination of guarantees and credit facility Since 2019, Leonteq has had a stand-alone investment grade rating and it has significantly strengthened its capital position in recent years. As a result, all guarantees issued by Raiffeisen to Leonteq counterparties have been terminated over the last few years. The credit facility provided by Raiffeisen to Leonteq was also terminated at the end of September 2021, ahead of the agreed date. This will lead to a slight improvement in Leonteq's net interest result. Roger Reist, Head of Corporate Clients, Treasury & Markets and a member of the Executive Committee of Raiffeisen Switzerland, said: "We are pleased to continue our successful cooperation, which has proved beneficial for both parties, and to extend it by a further four years once Raiffeisen's new platform is successfully connected to the Leonteq platform. With the expansion of our own product capabilities, we are creating new opportunities to meet the investment needs of our clients even more effectively. In doing so, we can continue to count on Leonteq's expertise as a longstanding and successful player in the Swiss and international market for structured products." Lukas Ruflin, Chief Executive Officer of Leonteq, stated: "We are pleased to be extending our cooperation, which has been equally successful for Leonteq and for Raiffeisen. The adjusted framework of the agreement demonstrates how far Leonteq has come since we began partnering with Raiffeisen in 2013. It also underscores our position today as an established and independent service and technology provider. We are grateful to Raiffeisen for its support along the way and we look forward to continuing our collaboration."
CONTACT Investor Relations LEONTEQ DISCLAIMER This press release may contain specific forward-looking statements, e.g. statements including terms like "believe", "assume", "expect", "target" "forecast", "project", "may", "could", "might", "will" or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of the Company or any of its affiliates or subsidiaries and those explicitly or implicitly presumed in these statements. These factors include, but are not limited to: (1) general market, macroeconomic, governmental and regulatory trends, (2) movements in securities markets, exchange rates and interest rates and (3) other risks and uncertainties inherent in our business. In addition, currently, it is very difficult to provide a meaningful prediction on how the governmental actions in response to the ongoing outbreak of a novel coronavirus disease (COVID-19) and other COVID-19 related factors will affect Leonteq's operations and how long such measures will remain in place. The COVID-19 outbreak has caused, and may continue to cause, uncertainty, economic instability and a significant decrease of total economic output in the affected areas and globally. The impact of the COVID-19 outbreak on the general economic environment in the markets in which Leonteq operates remain uncertain and could be significant. Against the background of these uncertainties, you should not rely on forward-looking statements. Neither the Company nor any of its affiliates or subsidiaries or their respective bodies, executives, employees and advisers assume any responsibility to prepare or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this press release or to adapt them to any change in events, conditions or circumstances, except as required by applicable law or regulation. Additional features: File: Press release: Leonteq and Raiffeisen extend cooperation in the area of structured products End of ad hoc announcement |
1275318 02-Feb-2022 CET/CEST
