Raiffeisenlandesbank Oberösterreich Aktiengesellschaft

First Supplement dated 25 July 2016
to the Debt Issuance Programme Prospectus dated 22 December 2015
This document constitutes a supplement (the "First Supplement") for the purposes of Article 13 of the
Loi relative aux prospectus pour valeurs mobilières (the "Luxembourg Law") which implements
Directive 2003/71/EC of the European Parliament and the Council of 4 November 2003, as amended (the
"Prospectus Directive"), into Luxembourg law to two base prospectuses of Raiffeisenlandesbank
Oberösterreich Aktiengesellschaft: (i) the base prospectus in respect of non-equity securities ("NonEquity
Securities")
within
the
meaning
of
Article 22(6)(4)
of
the
Commission
Regulation (EC) No. 809/2004 of 29 April 2004 (the "Commission Regulation") and (ii) the base
prospectus in respect of Collateralised Notes (Fundierte Bankschuldverschreibungen) within the meaning
of Article 22(6)(3) of the Commission Regulation (the "Original Prospectus").
This First Supplement is supplemental to and must be read in conjunction with the Original Prospectus,
as amended by the First Supplement (the "Supplemented Prospectus"). Therefore, with respect to
future issues of notes of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft under the Programme
(the "Notes", which expression includes collateralised notes unless indicated otherwise), references in
the Final Terms to the Prospectus are to be read as references to the Supplemented Prospectus.
Raiffeisenlandesbank Oberösterreich
Aktiengesellschaft
Debt Issuance Programme (unlimited in size)
(the "Programme")
Raiffeisenlandesbank Oberösterreich Aktiengesellschaft ("RLB OÖ" or the "Issuer") has requested the
Commission de Surveillance du Secteur Financier (the "CSSF") of the Grand Duchy of Luxembourg
("Luxembourg") in its capacity as competent authority under the Luxembourg Law, to provide the
competent authorities in the Federal Republic of Germany ("Germany") and the Republic of Austria
("Austria") with a certificate of approval attesting that this First Supplement has been drawn up in
accordance with the Luxembourg Law (each a "Notification"). The Issuer may request the CSSF to
provide competent authorities in additional host Member States within the European Economic Area with
such a Notification.
This First Supplement has been approved by the CSSF, has been filed with said authority and will be
published in electronic form on the website of the Luxembourg Stock Exchange (www.bourse.lu) and on
the website of RLB OÖ (www.rlbooe.at).
RIGHT TO WITHDRAW
In accordance with Article 13 (2) of the Luxembourg Law, where the Supplemented Prospectus
relates to an offer of Notes to the public, investors who have already agreed to purchase or
subscribe for Notes before this First Supplement is published have the right, exercisable within a
time limit of two working days after the publication of this First Supplement, until 27 July 2016, to
withdraw their acceptances provided that the new factor, mistake or inaccuracy referred to in
Article 13 (1) of the Luxembourg Law arose before the final closing of the offer to the public and
the delivery of the Notes.
2
RESPONSIBILITY STATEMENT
Raiffeisenlandesbank Oberösterreich Aktiengesellschaft, with its registered office in Linz, Austria is solely
responsible for the information given in this First Supplement. The Issuer hereby declares that, having
taken all reasonable care to ensure that such is the case, the information contained in this First
Supplement is, to the best of its knowledge, in accordance with the facts and contains no omission likely
to affect its import.
NOTICE
Terms defined or otherwise attributed meanings in the Original Prospectus have the same meaning in this
First Supplement.
This First Supplement shall only be distributed in connection with the Original Prospectus.
The Issuer confirms that the Supplemented Prospectus contains all information with regard to the Issuer
and any Notes which is material in the context of the Programme and the issue and offering of Notes
thereunder, that the information contained therein is accurate in all material respects and is not
misleading, that the opinions and intentions expressed therein are honestly held, that there are no other
facts, the omission of which would make the Supplemented Prospectus as a whole or any of such
information or the expression of any such opinions or intentions misleading in any material respect, and
that all reasonable enquiries have been made to ascertain all facts and to verify the accuracy of all
statements contained therein.
No person has been authorised to give any information which is not contained in, or not consistent with,
the Supplemented Prospectus or any other information supplied in connection with the Programme and, if
given or made, such information must not be relied upon as having been authorised by or on behalf of the
Issuer, the Dealers or any of them.
Neither the Arranger nor any Dealer nor any other person mentioned in the Supplemented Prospectus,
excluding the Issuer, is responsible for the information contained in the Prospectus or any other
document incorporated therein by reference and, accordingly, none of these persons accepts any
responsibility for the accuracy and completeness of the information contained in any of these documents.
Save as disclosed herein or in the Original Prospectus there has been no other significant new factor,
material mistake or material inaccuracy relating to the information included in the Original Prospectus
since its publication.
If there has been an inconsistency between any information included in the First Supplement and
information included in the Original Prospectus, the information included in the First Supplement should
prevail.
3
Significant new factors and/or inaccuracies (as referred to in Article 16 (1) of the Prospectus
Directive) have arisen which in the Issuer's perception are capable of affecting the assessment of
the Notes. Thus, the following changes are made to the Original Prospectus:
In the Summary in Element B.12 "Selected historical key financial information" on page 9 of the
Original Prospectus at the end the following information shall be added:
"Source: Consolidated Annual Report 2015 RLB OÖ, pages 63, 65
in million EUR
31 December 2014
31 December 2015
Total assets
38,574
37,299
Liabilities
35,008
33,560
Equity
3,566
3,739
Net interest income
428
468
After-tax profit for the year (excl.
minority interests)
43
300"
In the Summary in Element B.12 "No material adverse change in the prospects of the Issuer" on
page 9 of the Original Prospectus the paragraph shall be replaced by the following:
"Save for the developments in respect of RBI and in connection with the winding down of the HETA
ASSET RESOLUTION AG, there has been no material adverse change in the prospects of the Issuer
since 31 December 2015, the date of its last audited financial statement."
In the Summary in Element B.12 "Significant change in the financial and trading position" on
page 9 of the Original Prospectus the paragraph shall be replaced by the following:
"Not applicable. There has been no significant change in the financial and trading position of the Issuer
since 31 December 2015."
In the Summary in Element B.13 "Recent Events" on page 10 of the Original Prospectus the third
paragraph shall be deleted and the following paragraphs shall be inserted:
"On 1 March 2015, the Austrian Financial Market Authority (Finanzmarktaufsichtsbehörde – "FMA"), in its
capacity as the Austrian resolution authority pursuant to the Austrian Recovery and Resolution Act
(Sanierungs- und Abwicklungsgesetz – "BaSAG"), initiated the resolution of HETA ASSET RESOLUTION
AG ("HETA"): On 10 April 2016, the FMA issued the administrative decision in relation to the challenge
procedure (Vorstellungsbescheid) confirming its administrative decision of 1 March 2015, which imposed
a temporary moratorium on certain obligations of HETA until 31 May 2016 ("Moratorium"). Furthermore,
with an administrative decision of 10 April 2016 the FMA, inter alia, applied the following resolution
measures to so-called "eligible liabilities" of HETA: (i) the nominal value or the outstanding remaining
amount together with interest accrued until 28 February 2015 is reduced to 0% in case of subordinated
liabilities and to 46.02% of the nominal amount in case of unsubordinated liabilities (bail-in tool); (ii) the
interest rate is reduced to zero from 01 March 2015 on; and (iii) the maturity is amended insofar that they
occur with the conclusion of the wind-down process of HETA, but on 31 December 2023 at the latest.
The following loan loss allowance developments took place in connection with the Moratorium for
Salzburger Landes-Hypothekenbank Aktiengesellschaft (HYPO Salzburg), which is fully consolidated in
the Issuer's group in 2015. Due to the receivables in existence as of 31 December 2015 vis-à-vis HETA
and non-utilised lines of credit respectively due to the Pfandbriefbank (Österreich) AG (in utilising loan
and advance due to the HETA), provisions have been created from its own share amounting to EUR 27.9
million (2014: EUR 15.5 million) (value adjustments amounting to EUR 15.2 million and provisions for
credit risks amounting to EUR 12.7 million). The Oberösterreichische Landesbank Aktiengesellschaft
("HYPO Oberösterreich") also made appropriate loan loss allowances, which affects the at equity
evaluation in the RLB OÖ group.
As of 31 December 2015, the investment in HYPO Oberösterreich was subjected to an impairment test.
The triggers for the impairment were in particular the effects having an impact on valuation linked to the
Moratorium, together with dampened future expectations with regard to the current trends for interest
4
rates and the economy. This resulted in a need to adjust the value from EUR -35.55 million (2014: EUR 39.58 million) to an IFRS carrying amount as of 31 December 2015 of EUR 115.00 million (2014:
EUR 132.91 million).
The further strategy, in particular whether and to what extent further risk provisioning is required will be
determined by obtaining an external expertise."
In the Summary in Element B.17 "Credit Ratings of the Issuer or its debt securities" on page 11 of
the Original Prospectus in the third column the third, fourth and fifth bullet point shall be replaced
by the following bullet points and the following bullet point shall be added at the end of the list:
"



"Long Term Bank Deposits": Baa2 – stable outlook
"Long Term Issuer Rating": Baa2 – stable outlook
"Senior Unsecured Rating": Baa2 – stable outlook"

"Long Term Rating Mortgage Covered Bonds": (Provisional)Aaa"
"
In the Summary in Element B.17 "Credit Ratings of the Issuer or its debt securities" on page 11 of
the Original Prospectus at the end the following paragraph shall be added:
"Ratings of Notes of the Issuer [No ratings have been assigned to these debt securities of the Issuer on
behalf of or in collaboration with the Issuer.] []]"
In the Summary in Element D.3 "Key information on the key risks that are specific to the Notes"
on page 22 of the Original Prospectus in the third column the following paragraphs shall be added
after the paragraph concerning "Statutory Loss Absorption":
"Ranking of the Notes in Issuer's insolvency
In an Issuer's insolvency, deposits may have a higher rank than the claims under the Notes."
In the German Translation of the Summary in Element B.12 "Ausgewählte wesentliche historische
Finanzinformationen" on page 26 of the Original Prospectus at the end the following information
shall be added:
"Quelle: Konsolidierter Geschäftsbericht 2015 der RLB OÖ, Seiten 63, 65
in Millionen EUR
31. Dezember 2014
31. Dezember 2015
Gesamtvermögen
38.574
37.299
Verbindlichkeiten
35.008
33.560
Eigenkapital
3.566
3.739
Zinsüberschuss
428
468
Jahresüberschuss nach Steuern
(exkl. Minderheitenanteil)
43
300"
In the German Translation of the Summary in Element B.12 "Keine wesentliche Verschlechterung
der Aussichten des Emittenten" on page 27 of the Original Prospectus the paragraph shall be
replaced by the following:
"Vorbehaltlich der Entwicklungen in Bezug auf die RBI und im Zusammenhang mit der Abwicklung der
HETA ASSET RESOLUTION AG, gab es seit dem 31. Dezember 2015, dem Datum des letzten geprüften
Jahresabschlusses, keine wesentlichen negativen Veränderungen in den Aussichten der Emittentin."
5
In the German Translation of the Summary in Element B.12 "Signifikante Veränderungen in der
Finanz- bzw. Handelsposition" on page 27 of the Original Prospectus the paragraph shall be
replaced by the following:
"Nicht anwendbar. Seit dem 31. Dezember 2015 hat es keine signifikanten Änderungen der Finanz- und
Handelsposition der Emittentin gegeben."
In the German Translation of the Summary in Element B.13 "Letzte Ereignisse" on page 27 of the
Original Prospectus the third paragraph shall be deleted and the following paragraphs shall be
inserted:
"Am 1.3.2015 leitete die österreichische Finanzmarktaufsichtsbehörde ("FMA") als Abwicklungsbehörde
gemäß dem Sanierungs- und Abwicklungsgesetz ("BaSAG") die Abwicklung der HETA ASSET
RESOLUTION AG ("HETA") ein: Mit Vorstellungsbescheid vom 10.4.2016 verhängte die FMA in
Bestätigung des Mandatsbescheids vom 1.3.2015 eine bis 31.5.2016 befristete Stundung von
bestimmten Verbindlichkeiten der HETA ("Moratorium"). Weiters ordnete die FMA mit Mandatsbescheid
vom 10.4.2016 ua die Anwendung folgender Abwicklungsmaßnahmen hinsichtlich bestimmter sog
"berücksichtigungsfähiger Verbindlichkeiten" der HETA an: (i) deren Nennwert oder ausstehende
Restbetrag samt der bis zum 28.2.2015 aufgelaufenen Zinsen bei nachrangigen Verbindlichkeiten auf 0%
und bei nichtnachrangigen Verbindlichkeiten auf 46,02% des Nominale herabgesetzt (Instrument der
Gläubigerbeteiligung (bail-in tool)); (ii) der Zinssatz zum 1.3.2015 auf null gesetzt; und (iii) die Fälligkeit
dahingehend geändert, dass sie mit dem Auflösungsbeschluss der HETA, jedoch spätestens am
31.12.2023 eintritt.
In Zusammenhang mit dem Moratorium ergaben sich für die in der Gruppe der Emittentin
vollkonsolidierte Salzburger Landes-Hypothekenbank Aktiengesellschaft (HYPO Salzburg) im Jahr 2015
betreffend Risikovorsorge folgende Entwicklungen. Auf Grund der zum 31.12.2015 bestehenden
Forderungen gegenüber der HETA bzw. nicht ausgenützten Kreditrahmen gegenüber der Pfandbriefbank
(Österreich) AG (bei Ausnutzung Forderung gegenüber der HETA) aus dem eigenen Kopfanteil wurden
Vorsorgen iHv EUR 27,9 Mio (2014: EUR 15,5 Mio) getroffen (Wertberichtigungen iHv EUR 15,2 Mio und
Rückstellungen für Kreditrisiken iHv EUR 12,7 Mio). Die Oberösterreichische Landesbank
Aktiengesellschaft ("HYPO Oberösterreich") hat ihrerseits ebenfalls entsprechende Vorsorgen getroffen,
welche sich auf die at equity Bewertung in der RLB OÖ Gruppe auswirken.
Aufgrund dessen wurde per 31.12.2015 insbesondere infolge der bewertungsrelevanten Auswirkungen in
Zusammenhang mit dem Moratorium sowie gedämpfter Zukunftserwartungen im Hinblick auf die aktuelle
Zins- und Konjunkturentwicklung die Beteiligung an der HYPO Oberösterreich einem Impairment-Test
unterzogen. Dabei ergab sich ein Wertberichtigungsbedarf von EUR -35,55 Mio (2014: EUR -39,58 Mio)
auf einen IFRS-Buchwert per 31.12.2015 von EUR 115,0 Mio (Vorjahr: EUR 132,91 Mio).
Die weitere Vorgehensweise, insbesondere ob und gegebenenfalls in welcher Höhe weitere Vorsorgen
erforderlich sind, wird unter Einholung einer externen Expertise festgelegt."
In the German Translation of the Summary in Element B.17 "Kreditratings der Emittentin oder
ihrer Schuldtitel" on page 29 of the Original Prospectus in the third column the third, fourth and
fifth bullet point shall be replaced by the following bullet points and the following bullet point
shall be added at the end of the list:
"



"Long Term Bank Deposits": Baa2 – stabiler Ausblick
"Long Term Issuer Rating": Baa2 – stabiler Ausblick
"Senior Unsecured Rating": Baa2 – stabiler Ausblick"

"Long
Term
Rating
(Provisional)Aaa"
"
Hypothekarisch
Fundierte
Bankschuldverschreibungen":
6
In the German Translation of the Summary in Element B.17 "Kreditratings der Emittentin oder
ihrer Schuldtitel" on page 29 of the Original Prospectus at the end the following paragraph shall
be added:
"Ratings von Schuldtiteln der Emittentin
[Entfällt; Diesen Schuldtiteln der Emittentin wurden im
Auftrag von oder in Zusammenarbeit mit der Emittentin
keine Ratings zugewiesen.] []]"
In the German Translation of the Summary in Element D.3 "Zentrale Angaben zu den zentralen
Risiken, die den Schuldverschreibungen eigen sind" on page 41 of the Original Prospectus in the
third column the following paragraphs shall be added after the paragraph concerning
"Gesetzliche Verlustteilnahme":
"Rang der Schuldverschreibungen bei Insolvenz der Emittentin
In einer Insolvenz der Emittentin können Einlagen einen höheren Rang als die Ansprüche im
Zusammenhang mit den Schuldverschreibungen haben."
In the section "RISK FACTORS – Risk Factors regarding RLB OÖ" in the risk factor headed "Risk
that customers and other contractual partners may fail to meet their obligations and that the
provisions formed by the Issuer are insufficient to cover this risk (loan and default risk)." on
page 44 of the Original Prospectus the second sentence shall be replaced by the following:
"The risk exists that in addition to the provisions formed by the Issuer as at 31 December 2015, additional
provisions will be needed for any doubtful or uncollectable receivables."
In the section "RISK FACTORS - Risk Factors regarding RLB OÖ", in the risk factor headed "Risk
of changes in the tax framework, in particular regarding bank tax and the introduction of a
financial transaction tax.” on page 48 of the Original Prospectus the last sentence of the second
paragraph shall be replaced by the following sentence:
"For the Issuer this results in a burden of approximately EUR 32.6 million for the financial year 2015
(2014: EUR 31.7 million)."
In the section "RISK FACTORS – Risk Factors regarding RLB OÖ", in the risk factor headed "Risk
that the equity of the financial holding of the Issuer may prove insufficient." on page 51 of the
Original Prospectus the first and second sentence of the first paragraph shall be replaced by the
following:
"As of 31 December 2015, the uppermost financial holding of the Issuer (Raiffeisenbankengruppe OÖ
Verbund eGen) had a total capital ratio of 16.79 per cent. on a consolidated level (total capital ratio in
accordance with CRR) and a Common Equity Tier 1 capital ratio of 13.82 per cent. (Source: Consolidated
Annual Report RLB OÖ as at 31 December 2015, page 155). Nonetheless, the risk exists that the equity
of the Issuer may be inadequate and that the prescribed capital requirements of the ECB, such as the
Supervisory Review and Evaluation Process Ratio ("SREP") may not be met."
In the section "RISK FACTORS – Risk Factors regarding RLB OÖ", the seventh paragraph as well
as the ninth, the tenth and the eleventh paragraph of the risk factor headed "Risk derived from
value losses derived from the investment portfolio of the Issuer (investment portfolio risk)."
commencing on page 57 of the Original Prospectus shall be replaced by the following
paragraphs:
"For the financial year 2015, RBI published a positive consolidated profit of EUR 379 million. However, no
dividends will be distributed to the shareholders. RZB reported a positive consolidated profit of EUR 222
million. However, RZB pays no dividends to the shareholders (i.e. RLBOÖ). All this and further negative
developments concerning RBI and RZB may have an adverse effect on the Issuer's assets, financial
position and results of operations."
"On 1 March 2015, the FMA, in its capacity as the Austrian resolution authority pursuant to the Austrian
Recovery and Resolution Act (Sanierungs- und Abwicklungsgesetz – "BaSAG"), initiated the resolution of
HETA: On 10 April 2016, the FMA issued the administrative decision in relation to the challenge
7
procedure (Vorstellungsbescheid) confirming its administrative decision of 1 March 2015, which imposed
a temporary moratorium on certain obligations of HETA until 31 May 2016 ("Moratorium"). Furthermore,
with an administrative decision of 10 April 2016 the FMA, inter alia, applied the following resolution
measures to so-called "eligible liabilities" of HETA ("Bail-in"): (i) the nominal value or the outstanding
remaining amount together with interest accrued until 28 February 2015 is reduced to 0% in case of
subordinated liabilities and to 46.02% of the nominal amount in case of unsubordinated liabilities (bail-in
tool); (ii) the interest rate is reduced to zero from 01 March 2015 on; and (iii) the maturity is amended
insofar that they occur with the conclusion of the wind-down process of HETA, but on 31 December 2023
at the latest.
The Moratorium and the Bail-in also affected debt instruments issued by Pfandbriefbank in the amount of
approximately EUR 1.2 billion.
On 2 April 2015 respectively 7 April 2015, the "Agreement covering the fulfilment and settlement of joint
and several liability in accordance with § 2 PfBrStG together with the settlement of claims for
reconciliation within their internal relationship" (Vereinbarung über die Erfüllung und Abwicklung der
Solidarhaftung gemäß § 2 PfBrStG sowie die Abwicklung von Ausgleichsansprüchen im Innenverhältnis)
was concluded between Pfandbriefstelle, Pfandbriefbank, as well as the individual member institutions of
Pfandbriefstelle and the state of Carinthia. On the basis of this agreement, HYPO Salzburg is obliged,
taking into consideration the per capita share of its associated Gewährträger, to make available funds
amounting to up to EUR 155.0 million to Pfandbriefbank in order to enable it to honour the liabilities which
are due stemming from the HETA issuances. In return, Pfandbriefbank relinquishes all current and future
receivables, securities and other rights arising from or in connection with specific HETA financings to the
joint and several creditors which make these payments. As of 31 December 2015, funds amounting to
EUR 84.0 million have been paid to Pfandbriefbank whereof EUR 42.0 million are covered by its own per
capita share.
On 21 January 2016, the Kärntner Ausgleichszahlungs-Fonds ("KAF") made an offer pursuant to § 2a of
the Act on Financial Market Stability (Finanzmarktstabilitätsgesetz – "FinStaG") to tender debt
instruments of HETA. The debt instruments shall be tendered at a quota of 75%. The offer period ended
on 11 March 2016. On 16 March 2016, the results of the tender offer were published. The required
majority of creditors was not achieved.
On 18 May 2016, the Austrian Minister of Finance announced to have executed a Memorandum of
Understanding ("MoU") with certain HETA-creditors, including HYPO Salzburg and HYPO
Oberösterreich, with the following key terms: According to the Austrian Minister of Finance, it is intended
that the KAF will submit a new public offer which, as in January 2016, will be based on § 2a FinStaG. As
consideration the HETA creditors shall receive a cash payment of 75% for senior HETA-debt instruments
and 30% for subordinate HETA-debt instruments. Alternatively, the HETA creditors shall be offered a zero
coupon bond of the KAF with a term of about 13.5 years, in respect of which HETA-creditors will be
allowed to subscribe in a ratio (nominal amount of HETA debt as of 1 March 2015 including interest
accrued until then: nominal amount of the zero coupon bond) of 1:1 the zero coupon bond, and
subordinate creditors in a ratio of 2:1. The zero coupon bond of the KAF shall be backed by a guarantee
of the Federation. In addition, there will be a stabilization of the zero coupon bond after the expiry of a
holding period during the term of 180 days. There are some material steps still to be implemented before
the offer by the KAF can be made (such as sufficient binding support undertakings, certain statutory
requirements, EU Commission's examination of the offer for state aid). The tender offer is expected to be
published as of the beginning of September 2016 with completion expected in mid-October 2016.
In connection with the Moratorium the following loan loss allowance developments took place for HYPO
Salzburg, which is fully consolidated in the Issuer's group in 2015. Due to the receivables in existence as
of 31 December 2015 vis-à-vis HETA and non-utilised lines of credit respectively due to the
Pfandbriefbank (in utilising loan and advance due to the HETA), provisions have been created from its
own share amounting to EUR 27.9 million (2014: EUR 15.5 million) (value adjustments amounting to
EUR 15.2 million and provisions for credit risks amounting to EUR 12.7 million). HYPO Oberösterreich
also made appropriate loan loss allowances, which affects the at equity evaluation in the RLB OÖ group.
For the evaluation of the risk provision the financial statements from the published creditors and investors
information of HETA as well as possible payments from the deficiency guarantee of the federal state of
Carinthia were taken into account. The amount of the possible liquidity outflow and the collectability of
possible claims towards HETA and the federal state of Carinthia are fraught with uncertainty.
8
Furthermore, as of 31 December 2015, the investment in HYPO Oberösterreich was subjected to an
impairment test. The triggers for the impairment were in particular the effects having an impact on
valuation linked to the Moratorium, together with dampened future expectations with regard to the current
trends for interest rates and the economy. This resulted in a need to adjust the value from EUR -35.55
million (2014: EUR 39.58 million) to an IFRS carrying amount as of 31 December 2015 of EUR 115.00
million (2014: EUR 132.91 million).
The risk provision formed by the Issuer decreased in comparison to the fiscal year 2014 by EUR 119.7
million respectively 66.2 per cent to EUR 61.1 million. This covers, inter alia, the above mentioned risk
provisions formed by HYPO Salzburg in connection with the Moratorium.
The further strategy, in particular whether and to what extent further risk provisioning is required will be
determined by obtaining an external expertise."
In the section "RISK FACTORS – Risk Factors regarding the Notes" on page 70 of the Original
Prospectus following risk factor shall be added after the risk factor headed "The Notes may be
subject to other resolution powers which may result in the non-payment of interest and/or nonrepayment of principal.":
"The Holders of the Notes are exposed to the risk that in an Issuer's insolvency deposits have a
higher ranking than their claims under the Notes.
Pursuant to § 131 BaSAG, which implements Article 108 BRRD in Austria, the following insolvency
hierarchy for deposits applies in insolvency proceedings opened in relation to the Issuer:
(a)
The following claims have the same ranking, which is higher than the ranking of the claims of
ordinary unsecured, non-preferred creditors: (i) that part of eligible deposits from natural persons
and micro, small and medium-sized enterprises which exceeds the coverage level provided for in
Article 6 of DGSD; and (ii) deposits that would be eligible deposits from natural persons, micro,
small and medium-sized enterprises if they are not made through branches (located outside the
EU) of institutions established within the EU.
(b)
The following claims have the same priority ranking, which is higher than the ranking of claims
provided for under point (a) above: (i) covered deposits; and (ii) deposit guarantee schemes
subrogating to the rights and obligations of covered depositors in insolvency.
Therefore, Holders of the Notes (including, without limitation, of senior Notes, subordinated Notes and, in
case the cover pool is insufficient, also of collateralised Notes) should bear in mind that in case of
insolvency proceedings opened in relation to the Issuer and in any comparable proceedings (such as
resolution proceedings pursuant to the BaSAG), their claims will be junior to the claims listed above in
points (a) and (b), and that therefore they will only receive payment of their clams if and to the extent that
such claims listed above in points (a) and (b) have been discharged in full."
In the section "TERMS AND CONDITIONS OF THE NOTES – English Language Version" the third
and fifth paragraph of "[§ 2 STATUS - In the case of Collateralised Notes the following applies" on
page 81 for Option I, on page 98 for Option II, on page 120 for Option III and on page 144 for
Option IV is replaced by the following paragraphs:
"(2) (a) The Notes are collateralised in accordance with the Austrian Act relating to Covered Bank Notes
(Gesetz betreffend fundierte Bankschuldverschreibungen - "FBSchVG") through cover assets of the
Cover Pool for Mortgage Collateralised Notes [if applicable insert further designation] (the
"Cover Pool"), which are intended to preferentially satisfy all Collateralised Notes of the Issuer
covered by this Cover Pool (basically values pursuant § 1(5) (1) and (2) FBSchVG).]"
"(2) (a) The Notes are collateralised in accordance with the Austrian Act relating to Covered Bank Notes
(Gesetz betreffend fundierte Bankschuldverschreibungen - "FBSchVG") through cover assets of the
Cover Pool for Public Collateralised Notes [if applicable insert further designation] (the "Cover
Pool"), which are intended to preferentially satisfy all Collateralised Notes of the Issuer covered by
this Cover Pool (basically values pursuant § 1(5) (3) and (4) FBSCHVG).]"
9
In the section "TERMS AND CONDITIONS OF THE NOTES – English Language Version" the
second and third paragraph of "§ 2 STATUS" on page 158 for Option V, on page 167 for Option VI,
on page 180 for Option VII, on page 196 for Option VIII is replaced by the following paragraphs:
"In the case
of a Cover
Pool for
Mortgage
Collateralis
ed Notes
the
following
applies
[(2) (a) The Notes are collateralised in accordance with the Austrian Act relating to
Covered Bank Notes (Gesetz betreffend fundierte Bankschuldverschreibungen "FBSchVG") through cover assets of the Cover Pool for Mortgage
Collateralised Notes [if applicable insert further designation] (the "Cover
Pool"), which are intended to preferentially satisfy all Collateralised Notes of the
Issuer covered by this Cover Pool (basically values pursuant § 1(5) (1) and (2)
FBSchVG).]
In the case
of a Cover
Pool for
Public
Collateralis
ed Notes
the
following
applies
[(2) (a) The Notes are collateralised in accordance with the Austrian Act relating to
Covered Bank Notes (Gesetz betreffend fundierte Bankschuldverschreibungen "FBSchVG") through cover assets of the Cover Pool for Public Collateralised
Notes [if applicable insert further designation] (the "Cover Pool"), which are
intended to preferentially satisfy all Collateralised Notes of the Issuer covered by
this Cover Pool (basically values pursuant § 1(5) (3) and (4) FBSCHVG).]"
In the section "TERMS AND CONDITIONS OF THE NOTES – German Language Version" the third
and fifth paragraph of "[§ 2 STATUS - Im Falle von Fundierten Bankschuldverschreibungen ist
folgendes anwendbar" on page 207 for Option I, on page 227 for Option II, on page 252 for
Option III and on page 280 for Option IV is replaced by the following paragraphs:
"(2) (a) Die Schuldverschreibungen
werden
gemäß dem
Gesetz betreffend fundierte
Bankschuldverschreibungen ("FBSchVG") durch die Deckungswerte des Deckungsstocks für
hypothekarisch fundierte Bankschuldverschreibungen [sofern anwendbar weitere
Bezeichnung einfügen] (der "Deckungsstock") besichert, welche zur vorzugsweisen Deckung
aller durch diesen Deckungsstock besicherten Fundierten Bankschuldverschreibungen der
Emittentin bestimmt sind (hauptsächlich Werte gemäß § 1 Abs 5 Z 1 und 2 FBSchVG).]"
"(2) (a)
Die
Schuldverschreibungen
werden
gemäß
dem
Gesetz betreffend
fundierte
Bankschuldverschreibungen ("FBSchVG") durch die Deckungswerte des Deckungsstocks für
öffentlich fundierte Bankschuldverschreibungen [sofern anwendbar weitere Bezeichnung
einfügen] (der "Deckungsstock") besichert, welche zur vorzugsweisen Deckung aller durch diesen
Deckungsstock besicherten Fundierten Bankschuldverschreibungen der Emittentin bestimmt sind
(hauptsächlich Werte gemäß § 1 Abs 5 Z 3 und 4 FBSchVG).]"
In the section "TERMS AND CONDITIONS OF THE NOTES – German Language Version" the
second and third paragraph of "§ 2 STATUS" on page 295 for Option V, on page 305 for Option VI,
on page 320 for Option VII, on page 338 for Option VIII is replaced by the following paragraphs:
"Im Fall eines
Deckungssto
cks für
hypothekaris
ch fundierte
Bankschuldv
erschreibung
[(2) (a) Die Schuldverschreibungen werden gemäß dem Gesetz betreffend
fundierte
Bankschuldverschreibungen
("FBSchVG")
durch
die
Deckungswerte des Deckungsstocks für hypothekarisch fundierte
Bankschuldverschreibungen [sofern anwendbar weitere Bezeichnung
einfügen] (der "Deckungsstock") besichert, welche zur vorzugsweisen
Deckung aller durch diesen Deckungsstock besicherten Fundierten
Bankschuldverschreibungen der Emittentin bestimmt sind (hauptsächlich
10
en ist
folgendes
anwendbar
Werte gemäß § 1 Abs 5 Z 1 und 2 FBSchVG).]
Im Fall eines
Deckungssto
cks für
öffentlich
fundierte
Bankschuldv
erschreibung
en ist
folgendes
anwendbar
[(2) (a) Die Schuldverschreibungen werden gemäß dem Gesetz betreffend
fundierte
Bankschuldverschreibungen
("FBSchVG")
durch
die
Deckungswerte des Deckungsstocks für öffentlich fundierte
Bankschuldverschreibungen [sofern anwendbar weitere Bezeichnung
einfügen] (der "Deckungsstock") besichert, welche zur vorzugsweisen
Deckung aller durch diesen Deckungsstock besicherten Fundierten
Bankschuldverschreibungen der Emittentin bestimmt sind (hauptsächlich
Werte gemäß § 1 Abs 5 Z 3 und 4 FBSchVG).]"
In the section "RAIFFEISENLANDESBANK OBERÖSTERREICH AKTIENGESELLSCHAFT ("RLB
OÖ")" on page 365 of the Original Prospectus the first paragraph shall be replaced by the
following:
"Any Information concerning Raiffeisenlandesbank Oberösterreich Aktiengesellschaft given below is
solely based on the Issuer's own appraisal and is partly stated in the Annual Report 2013, 2014 and 2015
and the Semi-Annual Report 2015 of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft."
In the section "RAIFFEISENLANDESBANK OBERÖSTERREICH AKTIENGESELLSCHAFT ("RLB
OÖ") – Independent Auditors" on page 365 of the Original Prospectus the first and second
paragraph shall be replaced by the following paragraphs:
"Mag. Alexandra Wurm (for the fiscal years 2013 and 2014) and MMag. Dr. Michael (for the fiscal year
2015), both association auditors of and appointed by "Österreichischer Raiffeisenverband", FriedrichWilhelm-Raiffeisenplatz 1, A-1020 Vienna, performed the statutory audit of RLB OÖ's German language
consolidated and unconsolidated financial statements for the fiscal years 2013, 2014 and 2015 and
issued an unqualified opinion. "Österreichischer Raiffeisenverband" is a member of "Vereinigung
Österreichischer Revisionsverbände".
In addition, RLB OÖ has appointed KPMG Austria GmbH, Wirtschaftsprüfungs- und
Steuerberatungsgesellschaft, Kudlichstraße 41, 4020 Linz, Austria as voluntary auditor, which has
performed an additional audit of RLB OÖ's German language unconsolidated financial statements for the
fiscal years ending 31 December 2013, 2014 and 2015, the respective unqualified audit opinions are
dated 1 April 2014, 7 April 2015 and 5 April 2016 respectively and which has also performed an additional
audit of RLB OÖ's German language consolidated financial statements for the fiscal years ending on
31 December 2013, 2014 and 2015, the respective unqualified audit opinions are dated 1 April 2014,
7 April 2015 and 5 April 2016, respectively."
In the section "RAIFFEISENLANDESBANK OBERÖSTERREICH AKTIENGESELLSCHAFT ("RLB
OÖ") – Organisational Structure" on page 365 of the Original Prospectus the second sentence of
the first paragraph shall be replaced by the following sentence:
"On 31 December 2015, the scope of consolidation of the Issuer has encompassed 154 fully consolidated
subsidiaries."
In the section "RAIFFEISENLANDESBANK OBERÖSTERREICH AKTIENGESELLSCHAFT ("RLB
OÖ") – Segment Reporting – Rating", on the pages 372 and 373 of the Original Prospectus the
third, fourth and fifth bullet point shall be replaced by the following bullet points and the following
bullet point shall be added at the end of the list:
"



"
"Long Term Bank Deposits": Baa2 – stable outlook
"Long Term Issuer Rating": Baa2 – stable outlook
"Senior Unsecured Rating": Baa2 – stable outlook"
11

"Long Term Rating Mortgage Covered Bonds": (Provisional)Aaa"
In the section "RAIFFEISENLANDESBANK OBERÖSTERREICH AKTIENGESELLSCHAFT ("RLB
OÖ") – Material adverse change in the prospects of the Issuer" on page 373 of the Original
Prospectus the paragraph shall be replaced by the following:
"Save for the developments in respect of RBI and in connection with the winding down of the HETA
ASSET RESOLUTION AG, there has been no material adverse change in the prospects of the Issuer
since 31 December 2015, the date of its last audited financial statement."
In the section "RAIFFEISENLANDESBANK OBERÖSTERREICH AKTIENGESELLSCHAFT ("RLB
OÖ") – Selected Historical Financial Information (based on IFRS consolidated financial
statements)" on page 377 of the Original Prospectus the following information shall be added at
the beginning of this section:
"Source: Consolidated Annual Report 2015 RLB OÖ, pages 63, 65
in million EUR
31 December 2014
31 December 2015
Total assets
38,574
37,299
Liabilities
35,008
33,560
Equity
3,566
3,739
Net interest income
428
468
After-tax profit for the year (excl.
minority interests)
43
300"
In the section "RAIFFEISENLANDESBANK OBERÖSTERREICH AKTIENGESELLSCHAFT ("RLB
OÖ") – Financial Information concerning the Issuer's Assets and Liabilities, Financial Position and
Profits and Losses", on page 378 of the Original Prospectus the paragraph shall be replaced by
the following:
"The consolidated financial statements of RLB OÖ for the financial years ended 31 December 2013,
31 December 2014 and 31 December 2015 and the unaudited semi-annual consolidated financial
statements for the period ended 30 June 2015 are incorporated by reference into this Prospectus.
There has been no significant change in the financial position of the Issuer since 31 December 2015."
In the section "RAIFFEISENLANDESBANK OBERÖSTERREICH AKTIENGESELLSCHAFT ("RLB
OÖ") – Third Party Information and Statement by Experts and Declarations of any Interest", on
page 380 of the Original Prospectus the first sentence shall be replaced by the following:
"The information above regarding ratings has been sourced from the mentioned rating agency (Moody's,
Rating Actions: RLB OÖ dated 27 June 2016 concerning the Rating of the Issuer and 7 July 2016
concerning the Rating for Mortgage Covered Bonds)."
In the section "RAIFFEISENLANDESBANK OBERÖSTERREICH AKTIENGESELLSCHAFT ("RLB
OÖ") – Recent Events" on page 380 of the Original Prospectus the second and third paragraph
shall be replaced by the following paragraphs:
"On 1 March 2015, the Austrian Financial Market Authority (Finanzmarktaufsichtsbehörde – "FMA"), in its
capacity as the Austrian resolution authority pursuant to the Austrian Recovery and Resolution Act
(Sanierungs- und Abwicklungsgesetz – "BaSAG"), initiated the resolution of HETA ASSET RESOLUTION
AG ("HETA"): On 10 April 2016, the FMA issued the administrative decision in relation to the challenge
procedure (Vorstellungsbescheid) confirming its administrative decision of 1 March 2015, which imposed
a temporary moratorium on certain obligations of HETA until 31 May 2016 ("Moratorium"). Furthermore,
with an administrative decision of 10 April 2016 the FMA, inter alia, applied the following resolution
measures to so-called "eligible liabilities" of HETA: (i) the nominal value or the outstanding remaining
amount together with interest accrued until 28 February 2015 is reduced to 0% in case of subordinated
liabilities and to 46.02% of the nominal amount in case of unsubordinated liabilities (bail-in tool); (ii) the
12
interest rate is reduced to zero from 01 March 2015 on; and (iii) the maturity is amended insofar that they
occur with the conclusion of the wind-down process of HETA, but on 31 December 2023 at the latest.
The following loan loss allowance developments took place in connection with the Moratorium for
Salzburger Landes-Hypothekenbank Aktiengesellschaft (HYPO Salzburg), which is fully consolidated in
the Issuer's group in 2015. Due to the receivables in existence as of 31 December 2015 vis-à-vis HETA
and non-utilised lines of credit respectively due to the Pfandbriefbank (Österreich) AG (in utilising loan
and advance due to the HETA), provisions have been created from its own share amounting to EUR 27.9
million (2014: EUR 15.5 million) (value adjustments amounting to EUR 15.2 million and provisions for
credit risks amounting to EUR 12.7 million). The Oberösterreichische Landesbank Aktiengesellschaft
("HYPO Oberösterreich") also made appropriate loan loss allowances, which affects the at equity
evaluation in the RLB OÖ group.
As of 31 December 2015, the investment in HYPO Oberösterreich was subjected to an impairment test.
The triggers for the impairment were in particular the effects having an impact on valuation linked to the
Moratorium, together with dampened future expectations with regard to the current trends for interest
rates and the economy. This resulted in a need to adjust the value from EUR -35.55 million (2014: EUR 39.58 million) to an IFRS carrying amount as of 31 December 2015 of EUR 115.00 million (2014:
EUR 132.91 million).
The further strategy, in particular whether and to what extent further risk provisioning is required will be
determined by obtaining an external expertise."
In the section "DOCUMENTS INCORPORATED BY REFERENCE" on page 394 of the Original
Prospectus the following item numbered with "6)" shall be added:
"6)
Extracted from: Annual Report 2015 of the Issuer (translation)
- Consolidated Balance Sheet as at 31 December 2015
- Consolidated Income Statement as at 31 December 2015
- Consolidated Statement of Comprehensive Income
- Consolidated Statement of Changes in Equity
- Consolidated Cash Flow Statement
- Disclosures to the Consolidated Financial Statements
- Audit Certificates
Page 65
Page 63
Page 64
Page 66
Page 67
Pages 68-159
Pages 160-163"
In the section "DOCUMENTS INCORPORATED BY REFERENCE – Availability of Documents
incorporated by Reference/Documents on Display" commencing on page 394 of the Original
Prospectus the second list item shall be replaced by the following:
"–
the historical financial information of the Issuer for the financial years 2013, 2014 and 2015 and the
Semi-Annual Report 2015 for information purposes only."
13
NAMES AND ADDRESSES
Issuer
Raiffeisenlandesbank Oberösterreich Aktiengesellschaft
Europaplatz 1
4020 Linz
Österreich
Arranger
Deutsche Bank Aktiengesellschaft
Große Gallusstraße 10–14
60272 Frankfurt am Main
Federal Republic of Germany
Fiscal Agent
(for all Notes which are not settled through OeKB CSD)
Deutsche Bank Aktiengesellschaft
Corporate Trust & Agency Services
Taunusanlage 12
60325 Frankfurt am Main
Federal Republic of Germany
Austrian Fiscal Agent
(for all Notes which are settled through OeKB CSD)
Raiffeisenlandesbank Oberösterreich Aktiengesellschaft
Europaplatz 1a
4020 Linz
Österreich
Paying Agent
Deutsche Bank Aktiengesellschaft
Taunusanlage 12
60325 Frankfurt am Main
Federal Republic of Germany
Luxembourg Listing Agent
Deutsche Bank Luxembourg S.A.
2, Boulevard Konrad Adenauer
1115 Luxembourg
Grand Duchy of Luxembourg

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