Deutsche Pfandbriefbank AG: Initiation of Expert Procedure concerning a credit default hedge under the 'ESTATE UK-3' securitisation transaction
13.12.2016
Deutsche Pfandbriefbank AG / Key word(s): Miscellaneous13-Dec-2016 / 23:13 CET/CESTDisclosure of an inside information acc. to Article 17 MAR, transmitted byDGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------Initiation of Expert Procedure concerning a credit default hedge under the"ESTATE UK-3" securitisation transactionMunich, 13 December 2016 - Deutsche Pfandbriefbank AG ("pbb"), the legalsuccessor of Hypo Real Estate Bank International AG, Stuttgart, is theissuer of credit linked notes of the "Estate UK-3" synthetic securitisationtransaction ("Credit Linked Notes"). These Credit Linked Notes hedge thedefault risk from certain credit exposures of pbb, provided that theconditions for the allocation of realised losses have been fulfilled inaccordance with the terms of the Credit Linked Notes. A default affectingone of the hedged exposures ("Reference Claim No. 3") has caused a loss ofapproximately GBP 113 million (please refer to pbb's ad-hoc announcementdated 18 January 2016); pbb intends to allocate this loss to the CreditLinked Notes. This loss allocation would trigger a total loss for CreditLinked Notes Classes A2, B, C, D and E, and would reduce the nominal amountof Class A1+ (of GBP 400,000) by approximately 0.1%.Deloitte GmbH Wirtschaftsprüfungsgesellschaft, in its capacity as trusteeof the ESTATE UK-3 transaction, today notified pbb that in their viewdoubts exist as to whether the loss allocation intended by pbb isjustified, and that the Trustee will appoint an Expert, in accordance withthe terms of the ESTATE UK-3 transaction, who will decide on whether theloss allocation is in fact justified.In the event of the loss allocation being fully or partially unjustified,pbb would have to bear the losses to that extent. In pbb's opinion, theconditions for the planned allocation of losses have been met.The prospectus for the ESTATE UK-3 transaction is available on pbb'swebsite: www.pfandbriefbank.com/debt-instruments/securitisation/estate-uk-3.html.Contact:Walter Allwicher +49 (0) 89 2880 28 787---------------------------------------------------------------------------13-Dec-2016 CET/CEST The DGAP Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.Archive at www.dgap.de--------------------------------------------------------------------------- Language: English Company: Deutsche Pfandbriefbank AG Freisinger Strasse 5 85716 Unterschleissheim Germany Phone: +49 (0) 89 2880 28 201 Fax: +49 (0) 89 2880 22 28 201 E-mail: info@pfandbriefbank.com Internet: www.pfandbriefbank.com ISIN: DE0008019001, Die internationalen Wertpapierkennnummern (ISIN) weiterer von der Deutsche Pfandbriefbank AG ausgegebener Finanzinstrumente sind abrufbar auf der Website der Deutsche Pfandbriefbank AG unter www.pfandbriefbank.com/investor-relations/pflichtve roeffentlichungen/ad-hoc-mitteilungen/liste-weiterer-finanz- instumente.html. The International Securities Identification Numbers (ISINs) of further, financial instruments issued by Deutsche Pfandbriefbank AG are available on Deutsche Pfandbriefbank's Investor Relations website under www.pfandbriefbank.com/en/investor-relations/mandat ory-publications/ad-hoc-announcements/list-of-further-finan- cial-instruments.html WKN: 801900 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard), Munich, Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover; London, Mailand, Paris, Luxemburg, SIX End of Announcement DGAP News Service