Ad-Hoc Mitteilungen

Deutsche Pfandbriefbank AG: Memorandum of Understanding signed for Heta debt securities - Positive non-recurring effect of approximately EUR 132 million expected in the event of successful implementation

Deutsche Pfandbriefbank AG  / Key word(s): Legal Matter

18.05.2016 09:51

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Creditors of Austrian workout institution Heta Asset Resolution AG
("Heta"), including Deutsche Pfandbriefbank AG ("pbb"), as well as the
Republic of Austria, today entered into a Memorandum of Understanding (MoU)
which provides for the largest part of certain Heta's liabilities ("Heta
debt securities") to be repaid. Based on this MoU, the parties confirmed
their joint intention to achieve an amicable agreement regarding the
restructuring of these Heta liabilities which are covered by a guaranty of
the Federal State of Carinthia. It is intended that the Kärtner
Ausgleichszahlungs-Fonds will make a buy back offer to HETA creditors for
the Heta debt securities they hold.

Assuming this Offer will - as planned - be made, accepted and therefore
become effective, this would result in a non-recurring pre-tax gain of
EUR132 million for pbb Group, expected to be recognised during the
financial year 2016. In March 2016, pbb anticipated slightly lower
consolidated profit before taxes (in accordance with IFRS) for 2016,
compared to the very good figure of EUR 195 million for the previous year.
The expectation already incorporated moderate reversals of loan loss
provisions on claims against Heta in the amount of around EUR 10 million.

Implementation of the MoU requires - among other conditions - on the one
hand the creation of the necessary legislative framework and on the other
hand the acceptance of the offer according to the quota required by law. In
addition, the outcome of the co-ordination with the EU Commission needs to
be considered.

Walter Allwicher 
+49 (0) 89 2880 28 787

18.05.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at and

Language:     English
Company:      Deutsche Pfandbriefbank AG
              Freisinger Strasse 5
              85716 Unterschleissheim
Phone:        +49 (0) 89 2880 28 201
Fax:          +49 (0) 89 2880 22 28 201
ISIN:         DE0008019001, Die internationalen Wertpapierkennnummern
              (ISIN) weiterer von der Deutsche Pfandbriefbank AG
              ausgegebener Finanzinstrumente sind abrufbar auf der Website
              der Deutsche Pfandbriefbank AG unter
              oeffentlichungen/ad-hoc-mitteilungen.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
WKN:          801900
Indices:      MDAX
Listed:       Regulated Market in Frankfurt , Munich, Stuttgart; Regulated
              Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover;
              London, Mailand, Paris, Luxemburg, SIX
End of Announcement                             DGAP News-Service