DEPFA BANK plc / Miscellaneous
05.03.2010 13:24
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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DEPFA Funding IV LP will not pay the next coupon on its Preferred
Securities
Dublin/Munich, 5 March 2010 - Dublin-based DEPFA BANK plc, a subsidiary
of Hypo Real Estate Holding AG (HRE), has determined that its Tier 1
issuing vehicle DEPFA Funding IV LP will not make payments on its EUR 500
million Preferred Securities (XS0291655727) on the next Distribution
Payment Date scheduled 21 March 2010.
Preferred securities are a particular class of subordinated Tier 1
instruments. The conditions for coupon payments are set out in the terms
and conditions of each issue. Coupon payments are at the discretion of the
Board of Directors of DEPFA BANK plc unless a contractual or other legal
prohibition on payment exists. As of 5 March 2010 such a situation exists
whereby DEPFA BANK plc is not permitted to pay coupons owing to an
insufficiency of adjusted distributable reserves as calculated from the
latest available audited annual accounts of the company.
In addition, DEPFA BANK plc considers servicing these instruments would
conflict with the EU Commission's rules for banks subject to a
restructuring aid investigation. In its Communication on restructuring aid
to financial institutions of July 2009 the Commission sets out that 'banks
should not use state aid to remunerate own funds (equity and subordinated
debt) when their activities do not generate sufficient profits'. HRE has
been in receipt of restructuring aid from the Federal Republic of Germany
and is awaiting a final ruling on the compatibility of such aid.
DEPFA BANK plc will make a decision regarding the payment of coupons on its
other subordinated Tier 1 instruments, DEPFA Funding II LP (XS0178243332)
and DEPFA Funding III LP (DE000A0E5U85), closer to their scheduled
distribution payment dates on 30 October 2010 and 8 June 2010 respectively.
Nevertheless, in this context DEPFA BANK plc does not expect that any such
coupon payments will be made in 2010.
Media contacts:
Walter Allwicher, +49-89-2 88 02 87 87, walter.allwicher@hyporealestate.com
Nina Lux, +49-89-2 88 01 14 96, nina.lux@hyporealestate.com
05.03.2010 13:24 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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Language: English
Company: DEPFA BANK plc
1, Commons Street
Dublin 1
Irland
Phone: +353 1 792 2222
Fax: +353 1 792 2211
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: DEPFA Funding IV LP will not pay the next coupon on its Preferred Securities
| Source: EQS Group AG