DGAP-Ad-hoc: Deutsche Pfandbriefbank AG / Key word(s): Miscellaneous
Deloitte GmbH Wirtschaftsprüfungsgesellschaft (Deloitte), in accordance with its obligations as trustee for the securitization transaction Estate UK-3 (UK-3 transaction) (Trustee), has verified if the intended loss allocation in the amount of GBP 113.8 million is permissible under the terms of the UK-3 transaction. An independent expert appointed by the Trustee had found on 28 June 2019 the allocation of the full amount of a credit loss of GBP 113.8 million under the Credit Linked Notes (CLN) issued under UK-3 permissible. According to the terms of the CLN, the findings of the expert are final and binding in the absence of manifest error. The Trustee has confirmed today that he has verified the expert opinion and has not found any manifest error in it. Accordingly, the Trustee has notified Deutsche Pfandbriefbank AG (pbb) that in its opinion the intended loss allocation is permissible.
A predecessor institution of pbb had entered into the UK-3 transaction to hedge the credit risk exposure of a real estate loan portfolio via the CLN in 2007. The real estate loan portfolio subsequently suffered a loan default. pbb envisaged allocating a loss of GBP 113.8 million resulting from the default to the CLN. Deloitte, who as Trustee represents the interests of the investors, expressed doubts with respect to the permissibility of the loss allocation (please refer to pbb's ad-hoc announcements dated 18 January 2016 and 13 December 2016). In June 2017, the trustee therefore appointed an independent expert to determine whether the conditions for a loss allocation were met.
On 28 June 2019 the expert presented its findings. The expert found the allocation of the full amount of a credit loss of GBP 113.8 million permissible, thereby fully affirming the position of pbb as issuer of the CLN. The loss allocation will lead to a corresponding write-down of the CLN (please refer to pbb's ad-hoc announcement dated 28 June 2019).
The CLN comprise the following securities:
GBP 400,000 Class A1+ Floating Rate Amortising Credit-Linked Notes: WKN A0LRNQ, ISIN XS0285362082
GBP 29,800,000 Class A2 Floating Rate Amortising Credit-Linked Notes: WKN A0LRNR, ISIN XS0285364963
GBP 35,760,000 Class B Floating Rate Amortising Credit-Linked Notes: WKN A0LRNS, ISIN XS0285366588
GBP 24,560,000 Class C Floating Rate Amortising Credit-Linked Notes: WKN A0LRNT, ISIN XS0285367982
GBP 8,240,000 Class D Floating Rate Amortising Credit-Linked Notes: WKN A0LRNU, ISIN XS0285369921
GBP 14,920,000 Class E Floating Rate Amortising Credit-Linked Notes: WKN A0LRNV, ISIN XS0285374509
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+49 (0) 89 2880 28 787
13-Sep-2019 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Company:||Deutsche Pfandbriefbank AG|
|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 https://www.pfandbriefbank.com/investoren/pflichtveroeffentlichungen/ad-hoc-mitteilungen/liste-weiterer-finanzinstrumente.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 https://www.pfandbriefbank.com/en/investors/mandatory-publications/ad-hoc-announcements/list-of-further-financial-instruments.html|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Munich, Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover; London, Dublin, Mailand, Paris, Luxembourg Stock Exchange, SIX|
|EQS News ID:||873309|
|End of Announcement||DGAP News Service|
873309 13-Sep-2019 CET/CEST