DGAP-Adhoc: Aareal Bank AG: Aareal Bank starts repayment of the SoFFin silent participation ahead of plan, enhances funding flexibility through a precautionary measure

| Source: EQS Group AG EQS Group AG 

Aareal Bank AG / Letter of Intent/Corporate Action

28.06.2010 07:03 

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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Aareal Bank starts repayment of the SoFFin silent participation ahead of
plan, enhances funding flexibility through a precautionary measure

  - First repayment tranche will amount to EUR 150 million

  - Flexibility to be enhanced by using the remaining framework guarantee
    for a precautionary shelf issue - no specific plans for placement on
    the capital markets at present

Wiesbaden, 28 June 2010 - Aareal Bank is starting repayment of the silent
participation by the German Financial Markets Stabilisation Fund ('SoFFin')
earlier than was announced originally. The international property
specialist will transfer a first tranche in the amount of EUR 150 million
to SoFFin. The German Federal Financial Supervisory Authority (BaFin) has
approved the repayment. SoFFin provided Aareal Bank with a silent
participation totalling EUR 525 million at the start of 2009. The repayment
of the remaining amount will be agreed upon in due course.

In addition, the Management Board decided to utilise the remaining EUR 2
billion framework guarantee. At present there are no specific plans for
placing the shelf issue on the market: as a purely precautionary measure,
this will retain the financial flexibility provided by the framework
guarantee for the next three years.

For Aareal Bank's shareholders, the two measures are virtually neutral in
terms of their impact on income. This is because the relief from the early
repayment of the SoFFin silent participation will be virtually neutralised
by the additional charges for the remaining guarantees. Aareal Bank's Tier
1 ratio (in accordance with the Credit Risk Standard Approach - CRSA) was
11.2 per cent as at 31 March 2010. Taking into account the partial
repayment to SoFFin, on a pro-forma basis, the ratio would have been 10.5
per cent - a comfortable level, also by international standards.


28.06.2010 07:03 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:      Aareal Bank AG
              Paulinenstr.15
              65189 Wiesbaden
              Deutschland
Phone:        +49 (0)611 348 - 0
Fax:          +49 (0)611 348 - 2548
E-mail:       aareal@aareal-bank.com
Internet:     www.aareal-bank.com
ISIN:         DE0005408116
WKN:          540811
Indices:      MDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, München, Düsseldorf, Stuttgart, Hamburg; Foreign
              Exchange(s) Stockholm
 
End of News                                     DGAP News-Service
 
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