DGAP-Adhoc: IKB Deutsche Industriebank AG: Invitation to submit offers to sell IKB Funding Trust I and IKB Funding Trust II hybrid securities

IKB Deutsche Industriebank AG  / Key word(s): Miscellaneous

17.08.2012 08:40

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Invitation to submit offers to sell IKB Funding Trust I and IKB Funding
Trust II hybrid securities

[Düsseldorf, 17 August 2012] The IKB Group (IKB) is today inviting holders
of the listed Trust Preferred Securities issued by IKB Funding Trust I,
ISIN DE0008592759, and IKB Funding Trust II, ISIN XS0194701487, to submit
offers for sale.

The IKB Funding Trust I issued Trust Preferred Securities in 2002 with a
total volume of EUR 250 million of which around EUR 75 million are still
outstanding. The IKB Funding Trust II issued Trust Preferred Securities in
2004 with a total volume of EUR 400 million which are still fully
outstanding.

In case of offer acceptance the payment  for one Trust Preferred Security
issued by IKB Funding Trust I with a nominal value of EUR 100 is EUR 21
comprising the offering price of EUR 18 and the direction fee of EUR 3 for
the consent to proposed amendments; the price range for one Trust Preferred
Security issued by IKB Funding Trust II with a nominal value of EUR 1,000
is EUR 160 - EUR 210. The acceptance period ends on 19 September 2012. This
information is subject to change.

The acceptance of the offer is subject to various conditions, including the
approval of proposed amendments relating to IKB Funding Trust I with an
approval rate of not less than 66 2/3%.

Holders of Trust Preferred Securities issued by IKB Funding Trust I
consenting to the proposed amendments will receive 3% of the nominal amount
of EUR 100, equal to EUR 3 per security, if the approval rate is not less
than 66 2/3%. Approval can be granted irrespective of participation in the
tender procedure.

Morgan Stanley & Co International plc and IKB Deutsche Industriebank AG
will act as joint dealer managers.

It is intended that the securities will be acquired by Matrona GmbH, a
company of the IKB Group. The transaction is expected to strengthen the
capital base of IKB AG.

The Board of Managing Directors


Contact:
Dr. Jörg Chittka, telephone: +49 211 8221-4349; Armin Baltzer, telephone:
+49 211 8221-6236, fax: +49 211 8221-6336, e-mail: presse@ikb.de


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Information and Explaination of the Issuer to this News:

Notes

The Trust Preferred Securities issued by IKB Funding Trust I and IKB
Funding Trust II (the 'securities') are undated and constitute total
eligible regulatory capital of IKB. Interest payments on these securities
have been suspended since 2008 as IKB AG has not reported profits in any
financial year since 2007. Servicing the compensation agreements of a total
amount of EUR 1,151.5 million and the value recovery rights of the hybrid
investors mean that IKB AG will in all likelihood not report any, or only
minimal, profit for several financial years to come, even if operating
activities are profitable.

The listed prices of the securities as of 16 August 2012 were: IKB Funding
Trust I approx. EUR 11, IKB Funding Trust II approx. EUR 110.

The offer for purchase has been approved by the regulatory authorities.
Price caps that were set in this context were fully utilised by IKB in the
interest of investors. It is not possible for IKB to raise these price
caps.

It will not be possible to acquire all outstanding securities under this
authorisation.  Purchases of securities issued by IKB Funding Trust I will
take priority; purchases of securities issued by IKB Funding Trust II will
be allocated proportionately if offers exceed the authorised amount. IKB is
assuming that an authorisation to purchase further securities is unlikely
given the current legal and economic situation.

Security holders who wish to submit offers and/or consent to the
contractual amendments should contact their bank or custodian institution.
Further information is available on www.ikb.de.




Contact:
Dr. Jörg Chittka, telephone: +49 211 8221-4349; Armin Baltzer, telephone:
+49 211 8221-6236, fax: +49 211 8221-6336, e-mail: presse@ikb.de

17.08.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      IKB Deutsche Industriebank AG
              Wilhelm-Bötzkes-Straße 1
              40474 Düsseldorf
              Germany
Phone:        +49 (0)211 8221-4511
Fax:          +49 (0)211 8221-2511
E-mail:       investor.relations@ikb.de
Internet:     www.ikb.de
ISIN:         DE0008063306
WKN:          806330
Listed:       Regulierter Markt in Frankfurt (General Standard);
              Freiverkehr in Berlin, Düsseldorf, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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