DEPFA BANK plc / Miscellaneous
12.11.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Negotiations for a EUR 50 billion liquidity facility for HRE Group
completed / Provisional pre-tax loss of approx. EUR 3.1 billion in the
third quarter of 2008, including write-offs of approx. EUR 2.5 billion on
DEPFA
- Negotiations for a EUR 50 billion liquidity facility for Hypo Real
Estate Group completed
- Provisional pre-tax loss of approx. EUR 3.1 billion in the third
quarter of 2008, including write-offs of approx. EUR 2.5 billion on
intangible assets (DEPFA)
- Further negative impacts on earnings expected in the fourth quarter of
2008 and in 2009
- Application for support from SoFFin being prepared
Hypo Real Estate Group and a financial consortium, Deutsche Bundesbank, and
the German Federal Government have finalised the announced EUR 50 billion
liquidity facility, which has been partially guaranteed by the Federal
Government. The relevant legal documentation has been signed, or is ready
to be signed. The funds under the facility will be made available as and
from 13 November 2008.
Subject to an extension of the Federal guarantee beyond 31 March 2009, the
liquidity facility has a term maturing on 31 December 2009. In line with EU
regulations, the Federal guarantee will initially have a term maturing on
31 March 2009. Hypo Real Estate Group will approach the Federal Government
in due course in respect of an extension of the Federal guarantee beyond
its initial term.
In accordance with the contractual agreements, the costs of the liquidity
facility will be equivalent to 93 basis points per annum (p.a.) over
three-month Euribor (based on today's reference interest rates). In
addition, a debtor warrant (Besserungsschein) involving costs of a further
90 basis points p.a. on average has also been agreed which has to be paid
over a seven year period on a cumulative basis to the extent the Group
generates a pre-tax profit provided that payments will be capped at EUR 100
million p.a. in the years 2009-2011, and at EUR 150 million p.a. in the
years 2012-2015.
Hypo Real Estate Group is providing collateral of EUR 60 billion
(comprising loans and securities) to secure the liquidity facility. In
addition, Hypo Real Estate Holding AG has pledged its shares in the Group's
operating bank subsidiaries as collateral for the Federal guarantee.
The negative consolidated loss of Hypo Real Estate Group in the third
quarter 2008 arising in the environment of a worsening global financial
crises amounts to EUR 3.1 billion determined on the basis of numbers not
finally discussed with the Supervisory Board. This negative result is
largely attributable to the complete write-off of approx. EUR 2.5 billion
of goodwill and other intangible assets recognised at Hypo Real Estate
Holding AG that have arisen as a result of the first-time consolidation of
DEPFA. These are impairments of book values which do not result in any cash
outflows. Since the DEPFA goodwill and the intangible assets had already
been deducted in the past for the purposes of reporting regulatory core
capital, such losses will not reduce Hypo Real Estate Group's core capital
ratio. Further costs totalling approx. EUR 600 million recognised in income
for the third quarter of 2008 were due to various factors, including the
consequences of the collapse of Lehman Brothers, the situation in Iceland,
a further impairment relating to the investment in Babcock & Brown and
other losses in value relating to the CDO holdings of Hypo Real Estate
Group. In addition, in view of the deterioration of the real estate
markets, an additional amount of approx. EUR 100 million in portfolio-based
allowances was recognised.
The core capital ratio of the Hypo Real Estate Group (according to BIS
rules) was 6.8 per cent as at 30 September 2008 (including market risk
positions, 30 June 2008: 8.2 per cent).
For the fourth quarter, Hypo Real Estate Group expects that results will be
negatively affected as a result of the costs of the agreed liquidity
facility including the additional costs for bridging the liquidity shortage
until 13 December 2008 by Bundesbank which is being guaranteed by the
Federal Government and the German Financial Markets Stabilisation Fund
(Finanzmarktstabilisierungsfonds, 'SoFFin'), as well as expenditure in
conjunction with the necessary restructuring and repositioning of the
Group. Overall, the market environment remains difficult. The costs of the
EUR 50 billion liquidity facility and the restructuring will also impact on
results for 2009.
Hypo Real Estate Group will postpone the presentation of its complete
interim report for the period ending 30 September 2008 from 12 November
2008 (as originally announced) to 17 November 2008.
As already announced on 29 October 2008, in addition to the liquidity
facility, Hypo Real Estate Group is seeking further extensive support from
SoFFin. This support is intended to cover both additional liquidity and any
significant capital requirements. The granting of such support by SoFFin
forms the basis for the necessary restructuring and repositioning of the
Group. Hypo Real Estate Group is currently preparing the relevant
applications to SoFFin.'
Contact: Julia Hoggett: +353 (1) 792 2004
Issued on behalf of the following related entities in respect of their
listed bonds:
DEPFA BANK plc
DEPFA ACS BANK
DEPFA Funding III LP
DGAP 12.11.2008
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Language: English
Issuer: DEPFA BANK plc
1, Commons Street
Dublin 1
Irland
Phone: +49 (0)69 92882 275
Fax: +49 (0)69 92882 107
E-mail: info@depfa.com
Internet: www.depfa.com
ISIN: DE000A0AUJ90
WKN: A0AUJ9
Listed: Regulierter Markt in Frankfurt (General Standard)
End of News DGAP News-Service
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DGAP-Adhoc: DEPFA BANK plc: Negotiations for a EUR 50 billion liquidity facility for HRE Group completed / Provisional pre-tax loss of approx. EUR 3.1 billion in the third quarter of 2008, including write-offs of approx. EUR 2.5 billion on DEPFA
| Source: EQS Group AG