DEPFA FUNDING III LP: Payment of Purchase Price Adjustment

DEPFA FUNDING III LP  / Miscellaneous

02.09.2011 12:30

Dissemination of a UK Regulatory Announcement, transmitted by
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STOCK EXCHANGE ANNOUNCEMENT

For immediate release on 2 September 2011
 
 
Ad Hoc Announcement 

Payment of Purchase Price Adjustment
 
Dublin, 2 September 2011 - Reference is made to the Ad Hoc Announcement of
1 October 2010 relating to the transfer of assets to FMS Wertmanagement AöR
(FMS-WM) and to the press release of 18 July 2011 by the European
Commission approving the restructuring aid provided to Hypo Real Estate
Holding AG (HRE) and its subsidiaries (including the DEPFA BANK plc
sub-group) subject to the implementation of the restructuring plan and the
fulfilment of the commitments provided by Germany regarding HRE's
restructuring.

Within the framework of the transfer of assets to FMS-WM that took place on
1 October 2010 the German Financial Market Stabilisation Agency (FMSA)
reserved the right to stipulate a required payment (a purchase price
adjustment) of up to Euro 1.59 billion in order to avoid distortion of
competition. The FMSA has issued a declaratory decree that the full amount
is to be borne by the DEPFA BANK plc sub-group. The first instalment of the
purchase price adjustment becomes due and payable by the DEPFA BANK plc
sub-group today in the amount of Euro 800m. Accordingly the following bank
entities within the DEPFA BANK plc sub-group will pay to FMS-WM the Euro
amounts specified below:

DEPFA BANK plc                          656,000,000
DEPFA ACS BANK                          106,000,000
HYPO Pfandbrief Bank International S.A.  26,000,000
Hypo Public Finance Bank                 12,000,000


The remaining amount will not arise unless and until the conditions for
payment are met. As specified in the 2010 Annual Report the conditions are
to ensure that payment would not cause the regulatory Tier 1 capital ratio
of any of the bank entities to fall below 15%. In addition payment of the
purchase price adjustment must not result, inter alia, in: any of the bank
entities or their parent becoming insolvent, illiquid or result in a
negative going concern assumption; or the violation of any relevant
regulatory capital ratios, major credit limits or other legal or regulatory
requirements.

Issued on behalf of the following companies and limited partnerships in
respect of their listed debt:

DEPFA BANK plc      DEPFA Funding II LP
DEPFA ACS BANK      DEPFA Funding III LP
                    DEPFA Funding IV LP


Contact: 

Walter Allwicher at:
Tel.: +49 (0)89 2880 28787
mailto:walter.allwicher@hyporealestate.com

Oliver Gruss at:
Tel.: +49 (0)89 2880 28781
mailto:oliver.gruss@hyporealestate.com



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Language:           English
Company:            DEPFA FUNDING III LP
                    105 Wigmore Street
                    W1U 1QY London
                    United Kingdom
Phone:              +359 1 792 2222
Fax:                +359 1 792 2211
E-mail:             info@depfa.com
Internet:           www.depfa.com
ISIN:               DE000A0E5U85
Listed:             Regulierter Markt in Frankfurt (General Standard);
                    Freiverkehr in Berlin, Stuttgart
Category Code:      MSC
LSE Ticker:         
Sequence Number:    898
Time of Receipt:    Sep 02, 2011 11:28:06
 
End of Announcement                             DGAP News-Service
 
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