DEPFA ACS BANK DAC (-)
Agreement by DEPFA ACS BANK DAC to purchase its own covered bond securities
from FMS Wertmanagement AöR, to cancel them, and to sell assets to FMS-WM to
reduce its cover pool
15-May-2019 / 15:44 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
*Ad Hoc Announcement* - For immediate release
RE: *Agreement by DEPFA ACS BANK DAC to purchase its own covered bond
securities from FMS Wertmanagement AöR, to cancel them, and to sell assets
to FMS-WM to reduce its cover pool*
15 May 2019
Issued on behalf of DEPFA ACS BANK DAC ('*DEPFA ACS*' or the '*Issuer*')in
respect of its covered bonds (as defined below) listed on a trading venue
within the scope of Regulation (EU) No. 596/2014 (the '*Market Abuse
Regulation*'). The Market Abuse Regulation requires disclosure of inside
information relating to the Issuer and the covered bonds.
*Background:*
Since 2016 FMS Wertmanagement AöR ('*FMS-WM*'), the parent company of DEPFA
BANK plc ('*DEPFA plc*', together with the Issuer, '*DEPFA*'), has from time
to time been purchasing, through open market purchases or private
transactions, covered bonds issued by DEPFA ACS ('*covered bonds*' or
'*ACS*'). In November 2016 DEPFA announced the completion of a buyback by
the Issuer from FMS-WM of approximately Euro 4.0bln in total nominal amount
of ACS and a sale to FMS-WM of an equivalent value of public sector assets.
In November 2017 DEPFA announced the completion of a buyback by the Issuer
from FMS-WM of approximately Euro 2.0bln in total nominal amount of ACS and
a sale to FMS-WM of an equivalent value of public sector assets. FMS-WM has
informed DEPFA that it currently holds approximately Euro 1.28bln of ACS.
*Purchase of covered bonds:*
The relevant corporate bodies of FMS-WM and the boards of DEPFA have
approved a transaction involving the purchase by DEPFA ACS in early June
2019 of a certain number of their covered bonds currently held by FMS-WM.
The total nominal amount of the purchase of ACS (including global notes and
registered notes) of DEPFA ACS (rounded in Euros) is approximately Euro
1.28bln. The total nominal amount of the purchase of registered notes of
DEPFA ACS (rounded in Euros) is approximately Euro 1.2bln. The details of
the purchase of the global notes for DEPFA ACS are set out in the table
below:
*Issuer*: DEPFA ACS
*Principal
*Amount Amount
*ISIN / *Maturity *Issuance Purchased* Outstandin *Listing*
Common Code* Date* Currency* *(issuance g*
currency)* *(issuance
currency)*
CH0026116084 31/07/2031 CHF 625,000 3,735,000 SWX Swiss
XS0217803914 25/04/2025 EUR 10,000,000 0.00 London
US249575AN19 16/03/2037 USD 10,150,000 17,240,000 Dublin
/
DE000A0LPMX0
XS0259466695 06/07/2031 EUR 15,000,000 0.00 Dublin
XS0259885316 06/07/2036 EUR 15,000,000 0.00 Dublin
XS0258836914 30/06/2021 EUR 20,000,000 0.00 Luxembourg
It is the intention of DEPFA ACS to purchase these covered bonds and cancel
them.
*Sale of assets:*
Immediately following the covered bond purchase described above FMS-WM will
purchase from DEPFA ACS approximately Euro 1.32bln (in nominal value) of
public sector assets. This is a further step in the wind down plan to help
reduce the cover pool of DEPFA ACS.
_Purchase price and pricing mechanism:_
The purchase price of both the covered bonds and the public sector assets
will be conducted on an arm's length basis and assessed at fair market
value.
The pricing mechanism for arriving at the purchase price of a covered bond
will be the sum of the value of all remaining payments of principal and
interest discounted at the relevant purchase yield. The purchase yield of a
covered bond is subject to market conditions and as such will depend, inter
alia, on the relevant interest rate curve, purchase spread and applicable
market conventions for each covered bond which will vary depending on the
specific commercial characteristics for each covered bond.
*DEPFA ACS buyback policy:*
DEPFA ACS continues to show interest in buying back its ACS on the market on
a reverse enquiry basis and at prevailing market prices. Whether or not
DEPFA ACS accepts such enquiries is dependent on a number of factors
including legal, regulatory and commercial considerations. These
considerations remain for DEPFA ACS for any future reverse enquiries of
their outstanding ACS. Since January 2016 DEPFA has referred all reverse
enquiries to FMS-WM's treasury department. In principle DEPFA ACS remains
receptive to future reverse enquiries for their covered bonds at fair market
prices however such enquires should be made to FMS-WM in the first instance.
To the extent that FMS-WM holds outstanding ACS or purchases additional ACS
in the market, DEPFA ACS remains interested in buying back such further
covered bonds from FMS-WM at fair market prices with a view to cancelling
them subject to the same legal, regulatory and commercial considerations.
*FMS-WM*
FMS-WM was founded in July 2010 as a German state owned wind down agency in
order to wind up risk positions and non-strategic operations of the former
Hypo Real Estate Holding AG group in a manner aimed at maximizing the value
of the relevant assets. In 2014 FMS-WM acquired the whole share capital of
DEPFA plc with instructions to wind down the DEPFA Group.
*Media Contacts for DEPFA and FMS-WM*
For DEPFA:
Rachel Martin
Head of Communications
Tel.: +353 1 792 2144
rachel.martin@depfa.com
For FMS-WM:
Frank Hessel
Communications Department
Tel.: +49-89- 9547627 647
frank.hessel@fms-wm.de
ISIN: DE000A0BCLA9
Category Code: MSCM
TIDM: -
LEI Code: 6LIRQ1CRLFL6PQWR8919
Sequence No.: 8651
EQS News ID: 811845
End of Announcement EQS News Service
(END) Dow Jones Newswires
May 15, 2019 09:45 ET (13:45 GMT)
