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Deutsche Pfandbriefbank AG: SoFFin approves further and continued support for HRE Group

Deutsche Pfandbriefbank AG / Corporate Action


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Deutsche Pfandbriefbank AG: SoFFin approves further and continued support
for HRE Group
- Next tranche of recapitalisation: EUR 3 billion
- Liquidity guarantees extended until 30 June 2010

Munich, 4 November 2009 - On Wednesday, the Steering Committee of the
German Financial Markets Stabilisation Fund ('SoFFin') decided to extend
the support provided to Hypo Real Estate (HRE). The Group will receive a
capital contribution of EUR 3.0 billion in a further tranche. The Steering
Committee also decided to extend the EUR 52 billion liquidity guarantee
facility until 30 June 2010, originally in place until 18 November 2009.

The EUR 3.0 billion capital contribution is intended to be made to Hypo
Real Estate Holding AG (HRE Holding) and Deutsche Pfandbriefbank AG
(Deutsche Pfandbriefbank). SoFFin will contribute EUR 0.7 billion to HRE
Holding's reserves, of which HRE Holding will initially pass on EUR 0.3
billion to DEPFA BANK plc via a contribution to reserves. SoFFin will
contribute EUR 1.3 billion to Deutsche Pfandbriefbank's reserves, and will
also provide a EUR 1.0 billion silent partnership contribution. In line
with the German stock corporation act, this capital contribution via a
silent partnership contribution has to be approved by the Supervisory
Board. Approval by the EU Commission for the capital contribution, which
was approved by SoFFin on Wednesday, is expected within the next few days.

The total support for HRE from the government is being reviewed within the
scope of ongoing EU state aid proceedings. Following the conclusion of
these proceedings, and dependent on the outcome of a final review, SoFFin
may set up a deconsolidated environment for non-strategic or non-performing
assets and will decide on the final recapitalization of HRE.

The EUR 52 billion liquidity guarantee facility, the term of which was
extended by the SoFFin Steering Committee today, has been in place since
early February 2009. The facility is to be extended to the same terms and
conditions: as the beneficiary of the guarantees, Deutsche Pfandbriefbank
will pay SoFFin a pro-rata commitment commission of 0.1% on the undrawn
portion of the framework guarantee, and a 0.5% p.a. fee on guarantees drawn

Reiner Barthuber +49 (0) 89 2880 28 201

04.11.2009  Financial News transmitted by DGAP

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:         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:,
Listed:       Regulierter Markt in München, Düsseldorf, Stuttgart; Foreign
              Exchange(s) London, Paris, Luxembourg, SWX
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