DGAP-News: Aareal Bank AG / Key word(s): Miscellaneous
Aareal Bank AG: Aareal Bank repays SoFFin silent participation in full
(news with additional features)
30.10.2014 / 10:11
---------------------------------------------------------------------
Aareal Bank repays SoFFin silent participation in full
- Residual amount of EUR300 million transferred - German Financial
Markets Stabilisation Fund's exposure to Aareal Bank ends
- CEO Dr Wolf Schumacher: SoFFin contributed to secure Aareal Bank's
fully viable business model in a difficult market phase
Wiesbaden, 30 October 2014 - Having obtained approval from the German
Federal Financial Supervisory Authority (BaFin) to repay the silent
participation provided by the German Financial Markets Stabilisation Fund
(SoFFin) in full, Aareal Bank today repaid the residual amount of EUR300
million to SoFFin. In accordance with the repayment agreement, Aareal Bank
will additionally pay interest accruing until the repayment date on the
next regular maturity date on 31 March 2015 to SoFFin. Furthermore, in line
with existing contractual stipulations, the agreement provides for a pro
rata temporis share due to SoFFin in any dividends distributed by Aareal
Bank, by way of a dividend-linked additional payment for the 2014 financial
year.
With the full repayment of the silent participation, SoFFin's support to
Aareal Bank has therefore come to an end. In early 2009 - at the height of
the crisis affecting financial markets and the economy - the Bank had drawn
on support available within the scope of a government package to stabilise
the financial services sector. The objective was to protect Aareal Bank's
sustainably profitable business in what was a very difficult market
environment at the time. In addition to the silent participation, which had
an original amount of EUR525 million and accrued interest at 9 per cent per
annum, SoFFin had granted a guarantee facility to Aareal Bank for unsecured
issues of up to EUR4 billion. The Bank commenced its gradual repayment of
the silent participation in the summer of 2010, with an initial tranche of
EUR150 million, followed by a further EUR75 million tranche in 2011. At the
end of March 2012, the Bank returned all issuance guarantees. Aareal Bank
always fully serviced the government equity support measure taken out. The
Bank paid a total of approximately EUR 237 million to date in interest and
guarantee fees to SoFFin.
"We are deeply grateful to the German Federal Government, the German
parliament, and to SoFFin. The decision, taken in the year 2009, to provide
support to our bank in times of great uncertainty, contributed to secure
our fully viable business model in a difficult market phaseUsing the
government support package helped Aareal Bank as a perfectly healthy
institution remain on its successful path undeterred, even in a market
situation that had dramatically intensified at times. We have proven the
sustainable viability of our business model over recent years,
demonstrating that our strategy - geared towards long-term profitable
growth - is the right one", Schumacher said.
The voting agreement entered into in 2009 between SoFFin and Aareal Holding
Verwaltungsgesellschaft mbH ("Aareal Holding"), the Bank's anchor
shareholder, will also terminate soon after the conclusion of SoFFin
support. At the time, this voting agreement was concluded in the context of
SoFFin's support, in order to maintain Aareal Holding's blocking minority.
The Bank will separately publish SoFFin's corresponding voting rights
notification, pursuant to the requirements of the German Securities Trading
Act (sections 21 (1) and 22 (2) of the WpHG).
Aareal Bank
Aareal Bank AG, whose shares are traded in Deutsche Börse's MDAX segment,
is a leading international property specialist. The Bank concentrates its
business activities on the Structured Property Financing and the
Consulting/Services segments. The Structured Property Financing segment
encompasses all of Aareal Bank's property financing and funding activities.
In this segment, the Bank facilitates property investment projects for its
domestic and international clients, within the framework of a
three-continent strategy covering Europe, North America and Asia. In the
Consulting/Services segment, Aareal Bank offers the housing industry and
commercial property services and products for managing residential property
portfolios and processing payment flows. www.aareal-bank.com
Contact:
Aareal Bank AG
Corporate Communications
Sven Korndörffer
Tel.: +49 611 348 2306
sven.korndoerffer@aareal-bank.com
Christian Feldbrügge
Tel.: +49 611 348 2280
christian.feldbruegge@aareal-bank.com
Heinrich Frömsdorf
Tel.: +49 611 348 2061
heinrich.froemsdorf@aareal-bank.com
------------------------------------
Aareal Bank AG,
Registered Office: Wiesbaden
Commercial Register: Amtsgericht Wiesbaden HRB 13184
Chairman of the Supervisory Board: Marija G. Korsch
Management Board: Dr. Wolf Schumacher (Chairman),
Dagmar Knopek, Hermann J. Merkens,
Thomas Ortmanns
+++++
Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=BSVQPAPHOL
Document title: Press Release Aareal Bank AG
---------------------------------------------------------------------
30.10.2014 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
Language: English
Company: Aareal Bank AG
Paulinenstr.15
65189 Wiesbaden
Germany
Phone: +49 (0)611 348 - 0
Fax: +49 (0)611 348 - 2332
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, Düsseldorf, Hamburg, München,
Stuttgart; Stockholm
End of News DGAP News-Service
---------------------------------------------------------------------
294072 30.10.2014
DGAP-News: Aareal Bank AG: Aareal Bank repays SoFFin silent participation in full (news with additional features)
| Source: EQS Group AG