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. Contact Reiner Barthuber +49 (0) 89 2880 28 201 Michael Deeny +353 (1) 792 2222
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
| Source: DePfa Bank plc