Deutsche Pfandbriefbank AG

Legal Proceedings Report • Jan 21, 2010

News Details

Ad-hoc | 21 January 2010 11:31

Deutsche Pfandbriefbank AG: HRE submits application for a transfer of assets to a deconsolidated environment (Abwicklungsanstalt)

Deutsche Pfandbriefbank AG / Strategic Company Decision

21.01.2010

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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HRE submits application for a transfer of assets to a deconsolidated
environment (Abwicklungsanstalt)

• Transfer to comprise operations no longer strategically required by the
  Group, as well as additional balance sheet items

Munich, 21 January 2010 - Deutsche Pfandbriefbank AG:

On 21 January 2010, Hypo Real Estate Holding AG (HRE), in coordination with
the German Financial Markets Stabilisation Fund (SoFFin), submitted an
application to the German Financial Markets Stabilisation Agency ('FMSA')
for the establishment of a deconsolidated environment
('Abwicklungsanstalt') aimed at reducing assets in a value preserving
manner pursuant to section 8a of the German Financial Markets Stabilisation
Fund Act ('FMStFG'). The HRE Group intends to transfer operations no longer
strategically required for the Group's realignment, as well as additional
balance sheet items, to this deconsolidated environment; the establishment
of the institution is within FMSA's discretion. The transfer, which is set
to cover assets worth up to EUR 210 billion, is scheduled to take place
during the second half of 2010, once all necessary approvals have been
obtained from the responsible corporate bodies and institutions.

Specifically, the Group contemplates transferring parts of the public
finance and real estate finance portfolios of DEPFA BANK plc and Deutsche
Pfandbriefbank AG. The transfer may also include assets currently held by
other Group entities, particularly DEPFA ACS BANK (Dublin), Hypo
Pfandbriefbank International S.A. (Luxembourg) and Hypo Public Finance
Bank (Dublin), as well as structured products and trading positions that
are exposed to increased default risks, which will have been written down
if necessary or will have been included in the net trading result.

Derivatives positions (predominantly used as hedges for both asset and
liability items) might also be transferred to the deconsolidated
environment.

There are discussions regarding an inclusion of selected funding
instruments in the scope of the transfer to the deconsolidated
environment, in addition to assets. However, no transfer of unsecured
funding, Pfandbriefe or other covered bonds issued by Group entities for
funding purposes is planned.

Details regarding the actual portfolios, liabilities and derivatives to be
transferred, the manner in which the transfer will take place, and the
exact specifications of the deconsolidated environment, have yet to be
determined in coordination with the FMSA.

Kontakt:
Reiner Barthuber +49 (0) 89 2880 28 201

21.01.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: Deutsche Pfandbriefbank AG
Freisinger Strasse 5
85716 Unterschleissheim
Deutschland
Phone: +49 (0) 89 2880 28 201
Fax: +49 (0) 89 2880 22 28 201
E-mail: info@pfandbriefbank.com
Internet: www.hyporealestate.com
ISIN: DE0008084047, DE0008127218, DE0008127226, DE0005463251, XS0303478118, DE 0008042904, DE0008124041, DE0008042946
WKN: 808404, 812721, 812722, 812404, 546325, A0NXMH, 804290, 804294, Eine vollständige Übersicht der Eigenemissionen der Hypo Real Estate Bank AG (ISIN, Börse,Segment) finden Sie unter:, http://www.hyporealestate.com/7923.php
Listed: Regulierter Markt in München, Düsseldorf, Stuttgart; Foreign
Exchange(s) London, Paris, Luxembourg, SWX

End of News DGAP News-Service

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