04 May 2012 Berlin Hyp successfully completes tender to buy back

Press release
Berlin, 4 May 2012
Berlin Hyp successfully completes tender to buy back public-sector
Pfandbriefe
Today Berlin Hyp successfully concluded the tendering process to buy back
public-sector Pfandbriefe by setting the purchase price. Overall, investors
offered 991,705,000 euros of holdings which met the bank’s own target. Berlin
Hyp accepted all valid tenders of notes for purchase. “The take-up of 22.04%
demonstrates that our tender offer was considered attractive but also that a
large majority of investors do not base decisions whether to invest in Berlin
Hyp Pfandbriefe on external ratings,” said Gero Bergmann, responsible for
Treasury in the Berlin Hyp board of management.
Berlin Hyp stopped issuing public-sector Pfandbriefe some time ago and is
also no longer involved in the underlying lending business of public-sector
financing. Instead, the bank focuses on its core business, real estate finance.
Berlin Hyp’s most important refinancing instrument is therefore the mortgage
Pfandbrief.
On 19 April 2012 Berlin Hyp announced that it was reducing the level of
overcollateralisation in its public-sector cover pool and that it was assuming
that this would lead to the previous AAA/Aaa ratings for public-sector
Pfandbriefe being downgraded by rating agencies Fitch and Moody’s. It was
against this backdrop that investors were invited to offer their public- sector
Pfandbriefe back to Berlin Hyp. The tender process finished on Thursday 3
May 2012. The purchase price for the series listed below was determined at
midday today. The series callable in August 2012 was offered at a fixed price.
“Our primary motivation was the quest to be a competent and reliable capital
market partner for our investors,” explained Bergmann. “As we had to assume
that ratings will be downgraded, investors in the public-sector Pfandbriefe
should have the opportunity to offer them back at a substantial premium if a
sub-AAA/Aaa rating does not fulfil either their expectations or their investment
guidelines.” With regard to their mortgage Pfandbriefe Berlin Hyp strives to
maintain the AA+/Aa1 rating for the future.
Press release
Berlin-Hannoversche Hypothekenbank AG
www.berlinhyp.de
Seite 1 von 3
Press release
The purchase prices and the nominal amount accepted by Berlin Hyp for each
series can be seen in the following tables:
Description
ISIN
Maximum
amount per
series
EUR 1,000,000,000
3.750%
Public-sector
Pfandbriefe due
August 2012
DE000A0KAH03
none
Nominal
amount
accepted by
Berlin Hyp
Percentage
of accepted
amount in
relation to
nominal
amount
EUR
6.76%
Purchase price
101.05 %
67,577,000
Nominal
amount
accepted by
Berlin Hyp
Percentage
of accepted
amount in
relation to
nominal
amount
Reference
rate:
Interpolated
mid-swap
rate at time
price is
defined
19.52 %
0.91 %
-60
basis
points
106.284
%
28.78%
1.336 %
-16
basis
points
113.918
%
32.04 %
1.72 %
+5 basis
points
117.786
%
Description
ISIN
Maximum
amount per
series
EUR 1,250,000,000
4.000%
Public-sector
Pfandbriefe due
January 2014
DE000A0MFBA
0
EUR
EUR
750,000,000
243,938,000
EUR 1,250,000,000
4.125%
Public-sector
Pfandbriefe due
March 2017
DE000A0NKTQ
6
EUR
EUR
750,000,000
359,790,000
EUR 1,000,000,000
4.500%
Public-sector
Pfandbriefe due May
2019
DE000A0N3YJ4
EUR
EUR
500,000,000
320,400,000
Margin
Purchase
price
Press release
Berlin-Hannoversche Hypothekenbank AG
www.berlinhyp.de
Seite 2 von 3
Press release
Berlin-Hannoversche Hypothekenbank AG
Berlin Hyp is one of Germany’s leading real estate finance banks. As a
specialist institution, Berlin Hyp concentrates on the powerful economic
conurbations in Germany and selected international locations together with its
parent company, Landesbank Berlin AG. It focuses on business with
investors, housing societies, real estate funds, capital investment companies
and selected developers.
Press Contact:
Corporate Communication: +49 (0) 30 25 99-9123
Treasury: +49 (0) 30 25 99-9521
Press release
Berlin-Hannoversche Hypothekenbank AG
www.berlinhyp.de
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