SoFFin, Hypo Real Estate Group (HRE) and German financial consortium agree on restructuring the liquidity support facility for HRE in the amount of € 43 billion

Ad-Hoc Publication DEPFA BANK plc (21.12.2009 13.50)                            

SoFFin, Hypo Real Estate Group (HRE) and German financial consortium agree on
restructuring the liquidity support facility for HRE in the amount of € 43
billion 

Dublin, 21 December 2009  DEPFA BANK plc                                        

The German Financial Markets Stabilisation Fund ("SoFFin"), HRE and a German    
financial sector consortium have agreed on restructuring HRE's liquidity        
facility implemented in November 2008, in an original volume of € 50 billion.   
The outstanding volume was reduced to € 43 billion due to repayments made during
2009. The new liquidity facility was agreed upon in this amount, of which a     
consortium comprising German financial institutions and insurance companies has 
subscribed to approx. € 23 billion. The draw down is planned for December 23,   
2009, subject to usual drawing preconditions. In an amount of € 20 billion      
Deutsche Pfandbriefbank AG will issue securities which will be refinanced to    
some extent with central banks - as in the past - and increasingly on the       
market. The facility will be fully collateralised through SoFFin guarantees     
expiring on 22 December 2010. Accordingly, € 35 billion in German Government    
guarantees as well as a collateral portfolio originally pledged in an aggregate 
amount of approx. € 60 billion will be released.                                

The restructuring will reduce HRE's costs for obtaining liquidity. The          
securities subscribed by the consortium will bear interest at Euribor + 0.10%   
p.a. HRE will pay to SoFFin a pro-rata commitment commission of 0.10% p.a. on   
the undrawn portion, and a 0.50% p.a. fee on guarantees drawn upon.             

Repayments have reduced the original framework guarantee - granted to support   
the Group in an aggregate volume of € 102 billion - to € 95 billion. This figure
includes € 52 billion in existing SoFFin guarantees, which will expire by the   
end of June 2010.                                                               


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