DEPFA BANK plc: SoFFin approves further and continued support for HRE Group
• Next tranche of recapitalisation: EUR 3 billion
• Liquidity guarantees extended until 30 June 2010
Munich, 4 November 2009 - On Wednesday, the Steering Committee of the German
Financial Markets Stabilisation Fund ("SoFFin") decided to extend the support
provided to Hypo Real Estate (HRE). The Group will receive a capital
contribution of EUR 3.0 billion in a further tranche. The Steering Committee
also decided to extend the EUR 52 billion liquidity guarantee facility until 30
June 2010, originally in place until 18 No-vember 2009.
The EUR 3.0 billion capital contribution is intended to be made to Hypo Real
Estate Holding AG (HRE Holding) and Deutsche Pfandbriefbank AG (Deutsche
Pfandbriefbank). SoFFin will contribute EUR 0.7 billion to HRE Holding's
reserves, of which HRE Holding will initially pass on EUR 0.3 billion to DEPFA
BANK plc via a contribution to reserves. SoFFin will contribute EUR 1.3 billion
to Deutsche Pfandbriefbank's reserves, and will also provide a EUR 1.0 billion
silent partnership contribution. In line with the German stock corporation act,
this capital contribution via a silent partnership contribution has to be
approved by the Supervisory Board. Approval by the EU Commission for the
capital contribution, which was approved by SoFFin on Wednesday, is expected
within the next few days.
The total support for HRE from the government is being reviewed within the
scope of ongoing EU state aid proceedings. Following the conclusion of these
proceedings, and dependent on the outcome of a final review, SoFFin may set up
a deconsolidated environment for non-strategic or non-performing assets and
will decide on the final recapitalization of HRE.
The EUR 52 billion liquidity guarantee facility, the term of which was extended
by the SoFFin Steering Committee today, has been in place since early February
2009. The facility is to be extended to the same terms and conditions: as the
beneficiary of the guarantees, Deutsche Pfandbriefbank will pay SoFFin a
pro-rata commitment commission of 0.1% on the undrawn portion of the framework
guarantee, and a 0.5% p.a. fee on guarantees drawn upon.
Press contacts:
Walter Allwicher: +49 89 2880-28787; walter.allwicher@pfandbriefbank.com
Oliver Gruss: +49 89 2880-28781; oliver.gruss@pfandbriefbank.com
SoFFin approves further and continued support for HRE Group
| Source: DePfa Bank plc