WestLB Finance Netherlands BV

Transcription

Offering Circular
30th May, 2003
Börsenzulassungsprospekt
gemäß § 44 Börsenzulassungsverordnung
WestLB AG
(incorporated as a joint stock company
in the Federal Republic of Germany)
as Issuer and, with respect to Notes issued by
WestLB Finance Curaçao N.V. and WestLB Finance
Netherlands B.V., as Guarantor and as Borrower
and
WestLB Finance Curaçao N.V.
(incorporated with limited liability in
the Netherlands Antilles with statutory seat at Curaçao)
and
WestLB Finance Netherlands B.V.
(incorporated with limited liability
in The Netherlands with statutory seat at Amsterdam)
as Issuers
¤30,000,000,000
Debt Issuance Programme
This Offering Circular (which serves at the same time as “Börsenzulassungsprospekt”) replaces and supersedes the Offering Circular dated 17th October,
1994, the Offering Circular dated 26th July, 1996, the Offering Circular dated 19th August, 1997, the Offering Circular dated 10th August, 1999, the Offering
Circular dated 16th August, 2000, the Offering Circular dated 13th July, 2001 and the Offering Circular dated 15th May, 2002 each describing the Programme
(as defined below). This Offering Circular shall be valid for listing purposes on the Luxembourg and Frankfurt Stock Exchanges for one year from 30th May,
2003. As at the date hereof, the aggregate nominal amount of the Programme is increased to ¤ 30,000,000,000. Any Notes or any Loans (as defined below)
issued under the Programme on or after the date of this Offering Circular are issued subject to the provisions described herein. This does not affect any Notes
already in issue or Loans already disbursed.
Under this ¤30,000,000,000 Debt Issuance Programme (the ”Programme”), each of WestLB AG, WestLB Finance Curaçao N.V. and WestLB Finance
Netherlands B.V. (each an ”Issuer” and together the ”Issuers”), may from time to time issue Notes (the ”Notes”, which expression shall include Senior Notes
and Subordinated Notes (each as defined below)) denominated in any currency agreed by the Issuer of such Notes (the ”relevant Issuer”) and the relevant
Dealer(s) (as defined below) and WestLB AG (in such capacity, the “Borrower”) may from time to time accept assignable loans (“Loans”, which expression
shall include Senior Loans and Subordinated Loans (each defined below)) denominated in any currency agreed by the Borrower and the relevant Dealer.
Payments in respect of Notes issued by WestLB Finance Curaçao N.V. or WestLB Finance Netherlands B.V. will be unconditionally and irrevocably
guaranteed by WestLB AG (in such capacity, the ”Guarantor”).
The maximum aggregate nominal amount of all Notes and Loans from time to time outstanding will not exceed¤30,000,000,000 (or its equivalent in other
currencies calculated as described herein). As set out on page 6 below, the Notes and Loans will not be subject to any minimum or maximum maturity.
The Notes and Loans will be issued on a continuing basis to one or more of the Dealers specified on page 5 and any additional Dealer appointed under the
Programme from time to time, which appointment may be for a specific issue or on an ongoing basis (each a ”Dealer” and together the ”Dealers”).
Application has been made to list Notes issued under the Programme on the Luxembourg Stock Exchange (“Luxembourg Listed Notes”) during the period
of 12 months from the date of this Offering Circular. Notes to be issued under the Programme have been admitted by the Frankfurt Stock Exchange. Notice
of the aggregate nominal amount or principal amount of, the interest (if any) payable in respect of, the issue price of, and any other terms and conditions
not contained herein which are applicable to each Tranche (as defined below) of Notes or each Loan will be set forth in a pricing supplement (the ”Pricing
Supplement”) which, with respect to Notes to be listed on the Luxembourg Stock Exchange and/or the Frankfurt Stock Exchange, will be respectively
delivered to the Luxembourg Stock Exchange and/or the Frankfurt Stock Exchange on or before the date of issue of the Notes of such Tranche. The
Programme provides that Notes may be listed on such other or further stock exchange as may be agreed between the relevant Issuer and the relevant
Dealer(s) in relation to each issue. Each Issuer may also issue unlisted Notes. All Loans will be unlisted.
As more fully set out in the “Terms and Conditions of the Notes – 8. Taxation” and the “Terms and Conditions of the Loans – 8. Taxation”, the Issuer and
the Borrower shall not be liable in certain circumstances to pay any additional amounts to the holders of Notes or the creditors under Loans with respect to
any payment, including if such holder or creditor is resident of or otherwise connected with another Member State of the European Union and Taxes (as
defined therein) are payable pursuant to legislation or regulations introduced as a result as a directive of the European Union.
Each Issuer and the Borrower (as applicable) may agree with any Dealer and the Agent (as defined below) that Notes and Loans may be issued in a form not
contemplated by the Terms and Conditions of the Notes and the Terms and Conditions of the Loans herein, in which case the applicable Pricing Supplement
and, if appropriate, a supplementary Offering Circular, will specify the form and terms of such Notes or Loans.
Arrangers
Merrill Lynch International
WestLB AG
Dealers
Daiwa Securities SMBC Europe
JPMorgan
UBS Warburg
Goldman Sachs International
Lehman Brothers
Morgan Stanley
WestLB AG
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Each Issuer and the Guarantor and the Borrower, having made all reasonable enquiries, confirms that this
Offering Circular contains all information with respect to itself and the Notes to be issued or, as the case may be,
guaranteed by it and the Loans to be accepted by it which is material in the context of the issue of Notes and the
acceptance of Loans under the Programme, that the information contained in this Offering Circular is true and
accurate in all material respects and is not misleading, that the opinions and intentions expressed in this Offering
Circular are honestly held and that, to the best of its knowledge and belief, there are no other facts the omission
of which would, in the context of the issue of Notes and the acceptance of Loans under the Programme, make any
of such information or the expression of any such opinions or intentions misleading in any material respect. Each
Issuer and the Guarantor and the Borrower accepts responsibility accordingly.
This Offering Circular is to be read in conjunction with all documents which are deemed to be incorporated
herein by reference except in the case of Frankfurt listed Notes (see “Documents Incorporated by Reference” on
page 235). This Offering Circular shall be read and construed on the basis that such documents are so incorporated and form part of this Offering Circular.
This Offering Circular and any supplement will only be valid for issuing and/or listing Notes on the Luxembourg
Stock Exchange and/or the Frankfurt Stock Exchange in an aggregate nominal amount which, when added to the
aggregate nominal amount then outstanding of all Notes and Loans previously or simultaneously issued under the
Programme, does not exceed ¤30,000,000,000 or its equivalent in other currencies, as provided in the Programme Agreement.
The Dealers have not separately verified the information contained herein. Accordingly, no representation,
warranty or undertaking, express or implied, is made and no responsibility is accepted by the Dealers as to the
accuracy or completeness of the information contained in this Offering Circular or any other information provided
by any of the Issuers or the Guarantor or the Borrower. The Dealers do not accept any liability in relation to the
information contained in this Offering Circular or any other information provided by any of the Issuers or the
Guarantor or the Borrower in connection with the Programme.
No person has been authorised to give any information or to make any representation not contained in or not
consistent with this Offering Circular or any other information supplied in connection with the Programme and, if
given or made, such information or representation must not be relied upon as having been authorised by any of
the Issuers or the Guarantor or the Borrower or any of the Dealers.
Neither this Offering Circular nor any other information supplied in connection with the Programme is intended
to provide the basis of any credit or other evaluation and should not be considered as a recommendation by any
of the Issuers or the Guarantor or the Borrower or any of the Dealers that any recipient of this Offering Circular or
any other information supplied in connection with the Programme should purchase any Notes or Loans. Each
investor contemplating purchasing any Notes or Loans should make its own independent investigation of the
financial condition and affairs, and its own appraisal of the creditworthiness, of the relevant Issuer or the Borrower and, if appropriate, the Guarantor. Neither this Offering Circular nor any other information supplied in connection with the Programme constitutes an offer or invitation by or on behalf of any of the Issuers or the Dealers
to any person to subscribe for or to purchase any Notes or Loans.
The delivery of this Offering Circular does not at any time imply that the information contained herein concerning
any of the Issuers or the Guarantor or the Borrower is correct at any time subsequent to the date hereof
or that any other information supplied in connection with the Programme is correct as of any time subsequent to
the date indicated in the document containing the same. The Dealers expressly do not undertake to review the
financial condition or affairs of any of the Issuers or the Guarantor or the Borrower during the life of the Programme. Investors should review, inter alia, the most recent documents incorporated by reference into this Offering
Circular (if appropriate) when deciding whether or not to purchase any Notes or Loans.
Each Issuer has given an undertaking in connection with the listing of the Notes on the Luxembourg Stock
Exchange to the effect that, so long as any Note remains outstanding and listed on such exchange, in the event of
any adverse change in the financial condition of any Issuer which is material in the context of the Programme and
which is not reflected in the Offering Circular the Issuers will prepare a further supplement to the Offering
Circular or publish a new Offering Circular for use in connection with any subsequent issue of Notes to be listed
on the Luxembourg Stock Exchange. If the terms of the Programme are modified or amended in a manner which
would make the Offering Circular, as supplemented, inaccurate or misleading, a new Offering Circular will be
prepared.
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The distribution of this Offering Circular and the offer or sale of Notes and Loans may be restricted by law in
certain jurisdictions. Persons into whose possession this Offering Circular or any Notes or any Certificates of
Indebtedness relating to Loans come must inform themselves about, and observe, any such restrictions. In
particular, there are restrictions on the distribution of this Offering Circular and the offer or sale of Notes in
the United States, the United Kingdom, Japan, Germany, The Netherlands, the Netherlands Antilles and France
(see “Subscription and Sale” on pages 232-234 ).
In particular, the Notes and Loans have not been and will not be registered under the United States Securities Act
of 1933, as amended (the “Securities Act”) and the Notes are subject to U.S. tax law requirements. Subject to
certain exceptions, Notes and Loans may not be offered, sold or delivered within the United States or to U.S.
persons (see “Subscription and Sale” on page 232).
All references in this document to “U.S. dollars”, “U.S.$” and “$” refer to the currency of the United States of
America, those to “Sterling” and “£” refer to the currency of the United Kingdom, those to “Japanese Yen” and “¥”
refer to the currency of Japan, those to “Dfl.” and “NLG” refer to the former currency of The Netherlands, those to
“DEM“ refer to the former currency of Germany and those to “euro” and “¤” refer to the currency introduced at
the start of the third stage of European economic and monetary union pursuant to the Treaty establishing the
European Community, as amended.
In connection with the issue and distribution of any Tranche (as defined in “Terms and Conditions of the Notes”) of
Notes, the Dealer (if any) disclosed as the stabilising manager in the applicable Pricing Supplement or any person
acting for him may over-allot or effect transactions with a view to supporting the market price of the Notes of the
Series (as defined in “Terms and Conditions of the Notes”) of which such Tranche forms part at a level higher than
that which might otherwise prevail for a limited period. However, there may be no obligation on the stabilising
manager or any agent of his to do this. Such stabilising, if commenced, may be discontinued at any time and must
be brought to an end after a limited period. Such transactions shall be carried out in accordance with all applicable
laws and regulations.
Table of Contents
Summary of Terms and Conditions of the Notes and the Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form of the Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form of the Pricing Supplement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inhalt des Pricing Supplement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Terms and Conditions of the Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Terms and Conditons of the Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form of Senior Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form of Subordinated Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WestLB AG (“WestLB”)
Description of WestLB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capitalisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Statements of WestLB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recent Developments and Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WestLB Finance Curaçao N.V. (“WestLB Curaçao”)
Description of WestLB Curaçao . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Statements of WestLB Curaçao . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WestLB Finance Netherlands B.V. (“WestLB Netherlands”)
Description of WestLB Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Statements of WestLB Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subscription and Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Page
5
11
13
20
28
56
71
72
76
81
85
89
200
203
205
206
213
216
226
227
232
235
Summary of Terms and Conditions
of the Notes and the Loans
The following summary does not purport to be complete and is taken from, and is qualified in its entirety by, the
remainder of this Offering Circular and, in relation to the terms and conditions of any particular Tranche
of Notes or Loan, the applicable Pricing Supplement. Words and expressions defined in “Form of the Notes”,
“Form of the Pricing Supplement”, “Terms and Conditions of the Notes” and “Terms and Conditions of the Loans”
below shall have the same meanings in this summary.
Issuers of Notes
(1) WestLB AG (hereinafter also referred to as “WestLB”)
(2) WestLB Finance Curaçao N.V. (hereinafter also referred to as “WestLB Curaçao”)
(3) WestLB Finance Netherlands B.V. (hereinafter also referred to as “WestLB
Netherlands”)
(each of (2) and (3) being referred to in this Summary as a “Finance Subsidiary”)
Borrower
under Loans
WestLB AG
Guarantor
WestLB AG with respect to Notes issued by a Finance Subsidiary.
Description
Continuously offered Debt Issuance Programme for the issuance of Senior Notes and
Subordinated Notes and for the acceptance of Senior Loans and Subordinated Loans.
Arrangers
WestLB AG (for issues of Frankfurt Listed Notes)
Dealers
Daiwa Securities SMBC Europe Limited
J.P. Morgan Securities Ltd.
Lehman Brothers International (Europe)
Morgan Stanley & Co. International Limited
UBS Limited
WestLB AG
Regulatory Matters
Each issue of Notes and each Loan denominated in a currency in respect of which
particular laws, guidelines, regulations, restrictions or reporting requirements apply will
only be issued and made in circumstances which comply with such laws, guidelines,
regulations, restrictions or reporting requirements from time to time (see “Subscription
and Sale” below).
Issues of Notes denominated in Swiss Francs or carrying a Swiss Franc related element
with a maturity of more than one year (other than Notes privately placed with a single
investor with no publicity) will be arranged in compliance with the relevant regulations
of the Swiss National Bank based on article 7 of the Federal Law on Banks and Savings
Banks of 8th November, 1934 (as amended) and article 15 of the Federal Law on Stock
Exchanges and Securities Trading of 24th March, 1995 in connection with article 2,
paragraph 2 of the Ordinance of the Federal Banking Commission on Stock Exchanges
and Securities Trading of 2nd November, 1996. Under the said regulations, the relevant
Dealer or, in the case of a syndicated issue, the lead manager (the “Swiss Dealer”) must
be a bank domiciled in Switzerland (which includes a branch or subsidiary of a foreign
bank located in Switzerland) or a securities dealer licensed by the Swiss Federal Banking
Commission pursuant to the Federal Law on Stock Exchanges and Securities Trading of
24th March, 1995. The Swiss Dealer must report certain details of the transaction to the
Swiss National Bank no later than the relevant issue date for such transaction.
5
Notes with a
maturity of less
than one year
In respect of Notes issued by either Finance Subsidiary on terms that they must be
redeemed before their first anniversary will, if the proceeds of the issue are accepted
in the United Kingdom, constitute deposits for the purposes of the prohibition on
accepting deposits contained in section 19 of the Financial Services and Markets Act
2000 unless they are issued to a limited class of professional investors and have a
denomination of at least £100,000 or its equivalent, see “Subscription and Sale”.
Agent
WestLB AG
Distribution
Notes may be distributed by way of private or public placement and in each case on a
non-underwritten or an underwritten basis. Loans will be distributed by way of private
placement.
Size
Up to ¤ 30,000,000,000 (or its equivalent in other currencies calculated on the Agreement Date as described in the Programme Agreement) outstanding at any time. The
Issuers and the Borrower may increase the amount of the Programme in accordance
with the terms of the Programme Agreement.
Currencies
Subject to any applicable legal or regulatory restrictions, such currencies as may be
agreed between the relevant Issuer or the Borrower, as the case may be, and the relevant
Dealer(s), including, without limitation, euro, Japanese Yen, Sterling, and U.S. dollars
(as specified in the applicable Pricing Supplement).
Redenomination
The applicable Pricing Supplement may provide that Notes or a Loan, as the case may
be, may be redenominated in euro. If so, the wording of the redenomination clause will
be set out in full in the applicable Pricing Supplement.
Maturities
Any maturity as specified in the applicable Pricing Supplement subject to such minimum or maximum maturity as may be allowed or required from time to time by the
relevant central bank (or equivalent body) or any laws or regulations applicable to the
relevant Issuer or the Borrower, as the case may be, or the relevant Specified Currency.
No Notes the maturity of which goes beyond 31st December, 2015 will be issued.
Issue Price
Notes may be issued on a fully-paid or a partly-paid basis and Notes and Loans may
be issued at an issue price which is at par or at a discount to, or premium over, par.
Form of Notes
If the applicable Pricing Supplement specifies that U.S. Treasury Regulation Section
1.163-5 (c)(2)(i)(C) (the ”TEFRA C Rules”) applies, a Tranche of Notes will be represented by a global Note (a ”TEFRA C Global Note”). A TEFRA C Global Note may be exchanged in whole or, in the circumstances described in the Notes, in part for definitive
Notes:
(i) automatically not more than 120 days from the relevant Issue Date; or
(ii) upon request at the option of the holder upon the holder or the Relevant Clearing
System (as defined in Condition 1 on page 34), giving not less than 60 days’ written
notice to the Agent as described in the introduction to the Terms and Conditions; or
(iii) in the limited circumstances set out in the introduction to the Terms and Conditions,
in each case, as specified in the applicable Pricing Supplement.
If the applicable Pricing Supplement specifies that U.S. Treasury Regulation Section
1.163-5 (c)(2)(i)(D) (the ”TEFRA D Rules”) applies, a Tranche of Notes will be initially
represented by a temporary global Note (a ”TEFRA D Global Note”). Each Tranche
of Notes represented by a temporary TEFRA D Global Note will be deposited on the
relevant Issue Date with the Relevant Clearing System and will be exchangeable in
accordance with its terms for either a permanent TEFRA D Global Note or definitive
Notes (as specified in the applicable Pricing Supplement) in each case not earlier than
40 days after the Issue Date upon certification of non-U.S. beneficial ownership as
required by U.S. Treasury regulations. A permanent TEFRA D Global Note may be exchanged for definitive Notes in the circumstances set out in (ii) or (iii) as referred to
in the immediately preceding paragraph, in each case, as specified in the applicable
Pricing Supplement.
Interests in a global Note will be transferable in accordance with the applicable rules and
procedures for the time being of the Relevant Clearing System.
6
A Reduced Version of the Terms and Conditions of the Notes (as defined in ”Form of the
Notes” below) will be produced in respect of such Tranche and physically attached to
such Global Note where:
(a) a Tranche of Notes is initially represented by either:
(i)
a TEFRA C Global Note exchangeable in circumstances (i) or (ii) as referred
to in the first paragraph of this section; or
(ii) a temporary TEFRA D Global Note exchangeable for definitive Notes; or
(iii) a temporary TEFRA D Global Note exchangeable for a permanent TEFRA D
Global Note which is in turn exchangeable in circumstance (ii) as referred
to in the first paragraph of this section; or
(b) where so specified in the applicable Pricing Supplement.
Form of Loans
Loans will be evidenced by a Certificate of Indebtedness to which the applicable Pricing
Supplement will be attached. Rights under Loans may be transferred in whole or in part
by executing an assignment in the form provided on the reverse of the Certificate of
Indebtedness. The number of assignments under each Loan shall be limited to three or
any additional number specified in the applicable Pricing Supplement. Any assignment
must be notified to the Borrower in writing. Upon receipt of a duly executed engrossment of the assignment on the Certificate of Indebtedness, the Borrower will issue a new
Certificate of Indebtedness or certificates of Indebtedness evidencing the assigned
Loan.
Fixed Rate Notes
and Loans
Fixed interest will be payable on such date or dates as may be agreed between the
relevant Issuer or the Borrower, as the case may be, and the relevant Dealer(s) (as specified in the applicable Pricing Supplement) and will be calculated on the basis of such
Day Count Fraction as may be agreed between the relevant Issuer or the Borrower and
the relevant Dealer(s) (as indicated in the applicable Pricing Supplement).
Floating Rate Notes
and Loans
Floating Rate Notes and Loans will bear interest at a rate determined (i) on the basis of
a reference rate appearing on the agreed screen page of a commercial quotation service
or (ii) on such other basis as may be specified in the applicable Pricing Supplement, as
adjusted for any applicable margin. Interest Period(s), Interest Payment Date(s), Day
Count Fraction(s) and methods of calculation of interest will be specified in the applicable Pricing Supplement. Floating Rate Notes and Loans may have a maximum interest
rate, a minimum interest rate or both.
Dual Currency Notes
and Loans
Payments (whether in respect of principal and/or interest and whether at maturity or
otherwise) in respect of Dual Currency Notes and Loans will be made in such currency
or currencies, and based on such rate or rates of exchange, as the relevant Issuer or the
Borrower, as the case may be, and the relevant Dealer(s) may agree (as specified in the
applicable Pricing Supplement).
Index-Linked Notes
and Loans
Payments in respect of interest on Index-Linked Interest Notes and Loans or in respect
of principal on Indexed Redemption Amount Notes and Loans will be calculated by
reference to such index and/or formula as the relevant Issuer or the Borrower, as the
case may be, and the relevant Dealer(s) may agree (as specified in the applicable Pricing
Supplement). Each issue of Index-Linked Notes and Loans will be made in compliance
with all applicable legal and/or regulatory requirements, including, where relevant, the
provisions of German law regarding the indexation of debt obligations.
Credit Linked Notes
and Loans
Credit Linked Notes and Loans relating to an underlying asset(s) may be issued on
terms and conditions specified in the applicable Pricing Supplement. A supplement
to this Offering Circular incorporating the applicable Pricing Supplement will be
prepared for all Luxembourg listed Credit Linked Notes and a copy lodged with the
Luxembourg Stock Exchange.
No Credit Linked Notes and Loans will be listed on the Frankfurt Stock Exchange.
7
Zero Coupon Notes
and Loans
Zero Coupon Notes and Loans will not bear interest other than in the case of late
payment.
Redemption
The Pricing Supplement relating to each Tranche of Notes and Loan will indicate either
that the Notes or Loan, as the case may be, cannot be redeemed prior to their stated
maturity (other than in specified instalments (see below), if applicable or (unless otherwise specified in the applicable Pricing Supplement) for taxation reasons or following an
Event of Default) or that such Notes or Loan, as the case may be, will be redeemable at
the option of the relevant Issuer and/or (in the case of Senior Notes only) the Noteholders or the Borrower and/or (in the case of Senior Loans only) the Lenders, as the case
may be, upon giving, in the case of Senior Notes and Senior Loans, not less than 15 nor
more than 30 days’ irrevocable notice and, in the case of Subordinated Notes and Subordinated Loans such other notice period (if any) as is indicated in the applicable Pricing
Supplement to the Noteholders or the relevant Issuer or to the Lender or the Borrower,
as the case may be, on a date or dates specified prior to such stated maturity and at a
price or prices and on such terms as are indicated in the applicable Pricing Supplement.
See Condition 5 of the Notes and Condition 6 of the Loans for further details.
The Pricing Supplement may provide that the Notes or Loans may be repayable in two or
more instalments of such amounts and on such dates as indicated in the applicable
Pricing Supplement.
Notes issued by either Finance Subsidiary on terms that they must be redeemed before
their first anniversary are subject to restrictions on their denomination and distribution,
see “Regulatory Matters – Notes with a maturity of less than one year” above.
Denomination of
Notes
Notes and Loans will be issued in such denominations as may be agreed between the
relevant Issuer or the Borrower, as the case may be, and the relevant Dealer(s), as specified in the applicable Pricing Supplement (save that the minimum denomination of each
Note and Loan will be such as may be allowed or required from time to time by the
relevant central bank (or equivalent body) or any laws or regulations applicable to the
relevant Specified Currency), see “Regulatory Matters – Notes with a maturity of less
than one year” above.
Taxation
Unless otherwise specified in the applicable Pricing Supplement with respect to WestLB
as the Issuer of Notes or the Borrower under Loans, all payments in respect of the Notes
and Loans will be made without deduction for or on account of withholding taxes imposed within the jurisdiction in which the relevant Issuer or the Borrower, and, if appropriate, the Guarantor is incorporated, subject to certain exceptions as provided in Condition 8 of the Notes or the Loans respectively including in the event that the holder of
Notes or the creditor under Loans is resident of or otherwise connected with another
Member State of the European Union and Taxes (as defined therein) are payable pursuant to legislation or regulations introduced as a result as a directive of the European
Union. If the applicable Pricing Supplement provides that payments are to be made
subject to withholding of applicable Taxes (if any), it will specify that Condition 5(b) will
not apply to the Notes or Condition 6(b) will not apply to the Loans respectively.
Early Redemption
for Taxation Reasons
Unless otherwise specified in the applicable Pricing Supplement, early redemption will
be permitted for taxation reasons as provided in Condition 5(b) of the Notes and Condition 6(b) of the Loans.
Negative Pledge
The terms of Senior Notes issued by a Finance Subsidiary will contain a negative pledge
provision as described in Condition 9 of the Notes.
Events of Default
and Cross Default
Only the Senior Notes and Senior Loans will provide for Events of Default, but there
will be no Cross Default.
Status of the
Senior Notes
and Senior
Loans
The Senior Notes and Senior Loans will constitute direct, unconditional, unsecured
and unsubordinated obligations of the relevant Issuer and the Borrower respectively
and will rank pari passu with all other unsecured and unsubordinated obligations (save
for obligations having statutory priority) of the relevant Issuer and the Borrower
respectively as set out in Condition 2 of the Notes and Condition 3 of the Loans.
8
Status of the
Subordinated Notes
and Subordinated
Loans and the
Subordinated
Guarantee
The Subordinated Notes and Subordinated Loans will constitute direct, unconditional,
unsecured and subordinated obligations of the Issuer and the Borrower respectively
and will rank without any preference among themselves and pari passu with any other
unsecured subordinated obligations of the Issuer and the Borrower respectively.
The claims arising from the Subordinated Notes and Subordinated Loans and the Subordinated Guarantee with respect to the principal amount due (the ”Principal Claims”) are
subordinated in the event of insolvency proceedings over the assets of or liquidation of
the relevant Issuer or the Borrower and, if appropriate, the Guarantor to the claims of all
other creditors of the relevant Issuer or the Borrower and, if appropriate, the Guarantor
which are not also subordinated and, in any such event, payment of Principal Claims will
not be made until all existing claims against the relevant Issuer or the Borrower and, if
appropriate, the Guarantor, which are not subordinated, have been satisfied. The right
to set-off Principal Claims against claims of the relevant Issuer or the Borower and, if
appropriate, the Guarantor is excluded. Except, in the case of Subordinated Notes, for
the Subordinated Guarantee (if any), no contractual security is or will be provided for the
Principal Claims; any such contractual security that may have been provided in the past
or will be provided in the future by the relevant Issuer, the Guarantor or any third party
shall not secure the Principal Claims.
The subordination provided for in the Subordinated Notes, the Subordinated Loans and
the Subordinated Guarantee cannot be restricted nor can the term of the Notes, the
Loans or the Guarantee be shortened (other than in the event of the imposition of withholding taxes). In accordance with Section 10 paragraph (5a) of the Kreditwesengesetz
(the German Banking Act), a prepayment of the Principal Claims must be refunded to the
relevant Issuer, the Borrower or the Guarantor, as the case may be, notwithstanding any
agreement to the contrary, unless any of the statutorily defined exceptions is applicable
(liquidation of the relevant Issuer, the Borrower or the Guarantor, or replacement of the
prepaid principal amount by other capital of at least equal status within the meaning of
the German Banking Act).
WestLB Finance Netherlands B.V. will not issue Subordinated Notes.
The Guarantees
WestLB has entered into (i) a guarantee agreement dated 30th May, 2003 with Merrill
Lynch International by way of contract in favour of the holders of the Senior Notes as
third party beneficiaries relating to the Senior Notes (the “Senior Guarantee”) and (ii) a
guarantee agreement dated 30th May, 2003 with Merrill Lynch International by way of
contract in favour of the holders of the Subordinated Notes as third party beneficiaries
relating to the Subordinated Notes (the ”Subordinated Guarantee”).
Rating
The Programme has been rated Aa1 by Moody’s Investors Service Limited and AA+
by Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.
both for Senior and Subordinated Notes. Standard & Poor’s further stated: “Long-term
notes maturing until 18th July, 2005 have stable outlook. Long-term notes maturing after
18th July, 2005 have a negative outlook. The long-term rating does not apply to notes
issued after 18th July, 2001 and maturing after 31st December, 2015.“ Notes issued
under the Programme may be rated or unrated. Where a Tranche of Notes is rated, such
rating will not necessarily be the same as the rating assigned to the Programme. A
security rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by the assigning rating agency.
The Loans will not be rated.
Listing
Application has been made to list the Notes to be issued under the Programme on the
Luxembourg Stock Exchange. Notes to be issued under the Programme have been
admitted by the Frankfurt Stock Exchange. The Notes may also be listed on such other
or further stock exchange(s) as may be agreed between the relevant Issuer and the
relevant Dealer(s) in relation to each issue. Unlisted Notes may also be issued. The Pricing Supplement relating to each issue of Notes will state whether or not the Notes are to
be listed. The Loans will not be listed on any stock exchange.
9
Clearing Systems
Euroclear System, Clearstream Banking, société anonyme (“Clearstream Luxembourg”)
and/or, in relation to any Series of Notes, any other clearing system (including Clearstream Banking AG) as indicated in the applicable Pricing Supplement.
Governing Law
The Notes, the Loans, the Guarantees and the Agency Agreement will be governed
by German law. The Programme Agreement is governed by English law. In respect of
each Tranche of Notes and each Loan, the applicable Pricing Supplement will specify
whether the English or German language version of the terms and conditions will prevail
and whether a translation is to be attached. In the case of Notes issued by a Finance
Subsidiary, the Pricing Supplement will also specify whether the English or German
language version of the Gurantee will prevail.
Selling Restrictions
There will be selling restrictions in relation to the United States, the United Kingdom,
Japan, Germany, The Netherlands, the Netherlands Antilles, France, or other jurisdictions in connection with the offering and sale of a particular issue of Notes and the
making and acceptance of a particular Loan. See ”Subscription and Sale” below.
Place of Performance
and Jurisdiction
Place of performance and jurisdiction is Düsseldorf.
10
Form of the Notes
Each Tranche of Notes (as defined under ”Terms and Conditions of the Notes” below) will be initially represented
by a global Note, without receipts, interest coupons or talons, which will be delivered to the Relevant Clearing
System (as defined in ”Terms and Conditions of the Notes – Form, Denomination and Title”). Unless otherwise
specified in the applicable Pricing Supplement, such global Note will be a TEFRA C Global Note. Global Notes
and definitive Notes will be issued pursuant to the Agency Agreement (as defined under “Terms and Conditions
of the Notes” below). An abbreviated version of the Terms and Conditions produced in respect of any particular
Series of Notes as agreed between the relevant Issuer, WestLB (if the Issuer is a Finance Subsidiary) and the
relevant Dealer by amending, supplementing, completing or changing the Terms and Conditions and by omitting
therefrom all provisions that are inapplicable to such Series, as set out in full in the applicable Pricing Supplement
(the ”Reduced Version”) shall be attached (instead of the Terms and Conditions and the applicable Pricing Supplement) to the relevant global Note and endorsed on the definitive Notes and shall replace the Terms and Conditions set out herein for the purposes of such Tranche where:
(a) a Tranche of Notes is initially represented by either:
(i) a TEFRA C Global Note exchangeable automatically or at the option of the holder for definitive Notes;
or
(ii) a temporary TEFRA D Global Note which is exchangeable for definitive Notes; or
(iii) a temporary TEFRA D Global Note exchangeable for a permanent TEFRA D Global Note which is
in turn exchangeable at the option of the holder for definitive Notes; or
(b) so specified in the applicable Pricing Supplement.
A. Notes represented by a TEFRA C Global Note
(i) Payments
Payments of principal and interest (if any) on a TEFRA C Global Note will be made to, or to the order of, the
Relevant Clearing System against presentation or surrender (as the case may be) of the TEFRA C Global Note
without any requirement for certification.
(ii) Exchange of TEFRA C Global Note
A TEFRA C Global Note will be exchangeable in accordance with the Terms and Conditions of the Notes, as
set out on page 28.
B. Notes represented initially by a temporary TEFRA D Global Note
(i) Payments
Whilst any Note is represented by a temporary TEFRA D Global Note, payments of principal and interest (if any)
due prior to the Exchange Date (as defined below) will be made against presentation of the temporary TEFRA D
Global Note only to the extent that certification (in the form set out in the temporary TEFRA D Global Note) of nonU.S. beneficial ownership as required by U.S. Treasury regulations, has been received by the Relevant Clearing
System and the Relevant Clearing System, as applicable, has given a like certification (based on the certifications
it has received) to the Agent. The holder of a temporary TEFRA D Global Note will not be entitled to collect any
payment of interest or principal due on or after the Exchange Date.
(ii) Exchange of temporary TEFRA D Global Note
A temporary TEFRA D Global Note will be exchangeable in accordance with the Terms and Conditions, as set out
on pages 28 and 29.
(iii) Payments on permanent TEFRA D Global Note
Payments on a permanent TEFRA D Global Note which has been issued in exchange for a temporary TEFRA D
Global Note will be made in the manner set out in A(i) above.
11
(iv) Exchanges of permanent TEFRA D Global Note for definitive Notes
A permanent TEFRA D Global Note will be exchangeable for definitive Notes in accordance with the Terms and
Conditions, as set out on page 29.
Pursuant to the Agency Agreement (as defined under ”Terms and Conditions of the Notes” below) the Agent (as
so defined) shall arrange that, where a further Tranche of Notes is issued, the Notes of such Tranche shall be
assigned security code numbers by Euroclear and Clearstream, Luxembourg which are different from the security
code numbers assigned to Notes of any other Tranche of the same Series until at least 40 days after
the Issue Date of the Notes of such Tranche.
If the applicable Pricing Supplement specifies that the TEFRA D Rules apply and the Notes have an original
maturity of more than 365 days, the following legend will appear on all TEFRA D Global Notes, definitive Notes,
receipts and interest coupons (including talons) in respect of the relevant Tranche:
”Any United States person who holds this obligation will be subject to limitations under the United States
income tax laws, including the limitations provided in sections 165(j) and 1287(a) of the Internal Revenue
Code”.
The sections referred to provide that United States holders, with certain exceptions, will not be entitled to deduct
any loss on Notes, receipts or interest coupons and will not be entitled to capital gains treatment of
any gain on any sale, disposition, redemption or payment of principal in respect of Notes, receipts or interest
coupons.
12
Form of the Pricing Supplement
Set out below is the form of Pricing Supplement which will be completed for each Tranche of Notes and Loan and
will contain, inter alia, such information as is applicable in respect of such Notes or Loan (all references
to numbered Conditions being to the Terms and Conditions of the relevant Notes or Loan) and, the Pricing
Supplement for each Tranche of Notes will have the Terms and Conditions of the Notes or where applicable, the
Reduced Version (as defined in “Form of the Notes” above) scheduled to it and the Pricing Supplement for each
Loan will have the Terms and Conditions of the Loans scheduled to it.
[Date]
[Title of relevant [Tranche of Notes/Loan] (specifying type of [Notes/Loan])] issued pursuant to the
¤ 30,000,000,000 Debt Issuance Programme.
This Pricing Supplement is to be read in conjunction with the Terms and Conditions (the “Conditions”) contained
in the Offering Circular dated 30th May, 2003 issued in respect of the Programme.
[If the Notes are issued by WestLB Finance Curaçao N.V. or West LB Finance Netherlands B.V. and must be
redeemed before the first anniversary of their date of issue, the minimum denomination may need to be £100,000
or its equivalent in any other currency.]
[Specify items as “not applicable” or delete non-applicable items.]
Terms used herein shall be deemed to be defined as such for the purposes of the Conditions.
[ISSUER:
[WestLB AG/WestLB Finance Curaçao N.V. with statutory seat at Curaçao, Netherlands Antilles/
WestLB Finance Netherlands B.V. with statutory seat at Amsterdam, the Netherlands]]
[BORROWER:
WestLB AG]
[GUARANTOR:
WestLB AG]
Type of [Note/Loan]
1. Type of [Note/Loan]:
2.
3.
Convertible automatically or at the option of
the [Issuer/Borrower] and/or [Noteholders/Lender]
into [Note(s)/Loan] of another Interest/Payment
Basis:
[Yes-insert details in paragraph [20](g) below/No]
If Instalment [Note/Loan], insert Instalment
Amount(s) per cent. per annum / Instalment
Date(s):
[
4.* If Partly Paid Notes, insert amount of each
instalment/due dates for any subsequent
instalments/consequences of failure to
pay/rate of interest:
5.
[Fixed Rate/Floating Rate/Zero Coupon/Dual
Currency/Index-Linked (Index-Linked Interest/
Indexed Redemption Amount)/Credit Linked/
Partly Paid*/Instalment/Combination/Other]
If Dual Currency [Notes/Loan], insert exchange
rate(s) or basis of calculating exchange
rate(s) to determine principal and/or interest /
Calculation Agent /fall-back provisions/person at
whose option any Specified Currency is payable:
]
[insert details]
[
]
––––––––––
* Not applicable for Loans.
13
Description of the [Notes/Loan]
6. (a)
Conditions and Pricing Supplement to be
produced in:
* [(b) Version of the Guarantee:
7. *
8. *
9. *
10. *
Form of Note(s):
(a)
Provisions for exchange of bearer Notes:
English/German language [(with German/English
translation attached) – [English/ German] language
binding and controlling]
[English/German] language binding and controlling]
[TEFRA C Global Note/ Temporary
TEFRA D Global Note-insert details]
[EITHER TEFRA C Global Note exchangeable
[automatically/only in limited circumstances/
at the option of the holder] into Definitive Notes/
OR TEFRA D Temporary Global Note exchangeable
into TEFRA D Permanent Global Note and
further exchangeable [only in limited
circumstances/at the option of the holder] into
Definitive Notes/OR TEFRA D Temporary
Global Note exchangeable automatically into
Definitive Notes]
(b) Cost of exchange to be borne by:
[Issuer/Dealer(s)]
(c)
Reduced Version to be produced:
[Yes – see attached schedule***/no]
(a)
Talons for future Coupons to be
attached to Definitive Notes:
[Yes/No]
(b) Date(s) on which the Talons mature:
[give details]
(a)
[
Series No:
]
(b) If forming part of an existing Series:
[Yes – give details/No]
(c)
[specify the initial amount of each Global Note
(distinguishing between TEFRA D Temporary and
TEFRA D Permanent Global Notes) which should
aggregate the Nominal Amount specified
in paragraph 12(a)]
The Nominal Amount of each Global
Note if more than one to be issued for
the Tranche:
11. Senior/Subordinated:
[
]
12. *
[
]
[
]
[
]
[
]
[
]
[
]
[
]
[
]
(a)
Nominal Amount of Notes to be issued:
(b) Aggregate Nominal Amount of Series
(if more than one Tranche has been
issued):
(c)
Specified Currency (or Currencies in
the case of Dual Currency Notes):
(d) Specified Denomination(s):
13. ** (a)
Principal Amount of Loan:
(b) Specified Currency (or Currencies in
the case of Dual Currency Loans):
(c)
Additional Times for assignments
(if more than 3 times):
(d) Minimum Principal Amount for
assignments:
––––––––––
*
Not applicable for Loans.
** Not applicable for Notes.
*** Will always be the case where Global Note (whether directly or indirectly) exchangeable automatically or at the option
of the holder into Definitive Notes.
14
14. Issue Price:
[
] per cent.
15. [Issue/Disbursement] Date:
[
]
16. Interest Commencement Date (insert if
different from [Issue/Disbursement] Date):
[
]
Provisions Relating to Interest (if any) Payable
Fixed Rate [Notes/Loan]
17. (a) Fixed Rate(s) of Interest:
[
] per cent. per annum
(b) Fixed Interest Date(s):
[
]
(c) Initial Broken Amount per denomination:
[specify amounts (currency and denomination)]
(d) Final Broken Amount per denomination:
[specify amounts (currency and denomination)]
(e) Day Count Fraction:
[Actual/Actual (ISMA), 30/360 or specify other]
(NB: that if interest is not payable on a regular basis
(for example, if there are Broken Amounts specified)
Actual/Actual (ISMA) may not be a suitable
Day Count Fraction)
(f) Determination Date(s):
[
] in each year
[Insert interest payment dates except where there
are long or short periods. In these cases, insert
regular interest payment dates]
(NB: Only relevant where Day Count Fraction is
Actual/Actual (ISMA)
(g) Any other terms relating to the
calculation of interest:
[
]
Zero Coupon [Notes/Loan]
18. (a) Amortisation Yield:
[insert details]
(b) Reference Price:
[insert details]
(c) Other formula or basis for
determining Amortised Face Amount:
[insert details]
(d) Day Count Fraction in
relation to Early Redemption
Amount and late payments:
[Condition [5(e)/6(e)] Early Redemption
Amounts/Condition [5(j)/6(h)] – Late Payment
on Zero Coupon [Notes/Loan] apply/specify other]
Floating Rate [Notes/Loan] and Index-Linked Interest [Notes/Loan] and [Credit Linked Notes/Loan]
19. (a) Specified Period(s) or specified Interest
Payment Date(s):
(b) Margin(s):
[NB: specify either a period or periods or a
specific date or dates]
[plus/minus] [
15
(c) Minimum Interest Rate (if any):
[
(d) Maximum Interest Rate (if any):
[
20. * Manner in which Rate of Interest is to be
determined:
(a) If Screen Rate Determination:
(i) Reference Rate:
[Screen Rate Determination/Reference
Banks/Index/Formula / Other – insert details*]
[
]
[Either LIBOR, EURIBOR or other, although
additional information is required if other –
including fallback provisions]
(ii) Interest Determination Date(s):
[
]
[Second London business day prior to the start of
each Interest Period if LIBOR (other than sterling),
first day of Interest Period if sterling LIBOR and
second day on which the TARGET System is open
prior to the start of each Interest Period if
EURIBOR]
(iii) Relevant Screen Page:
[
]
[In the case of EURIBOR, if not Reuters 3000
EURIBOR01, ensure it is a page which shows a
composite rate or amend the fallback provisions
appropriately]
(iv) Reference Banks (if other than those
referred to in [Condition 3(b)(iii)(D)/
Condition 4 (b)(iii)(D)]):
(b) If Rate of Interest to be calculated
otherwise insert details including
Rate of Interest/Margin/fall-back
provisions:
[
]
[
]
(c) Business Day Convention:
[Modified Following Business Day/Floating Rate/
Following Business Day/Preceding
Business Day/Other convention – insert details]
(d) (i) Additional Business Centres:
(ii) Applicable Business Day definition
(if different from that in [Condition 3(b)(i)/
Condition 4 (b)(i)]):
[
]
[Condition 3(b)(i)/Condition 4 (b)(i)]) applies/
other – insert details]
(e) Day Count Fraction:
[Actual/365 or Actual/Actual] (ISDA)/
[Actual/365 (Fixed)] [Actual/365 (Sterling)]
/[Actual/360]/[30/360 or 360/360 or Bond Basis]
[30E/360 or Eurobond Basis]
(f) Other terms relating to the method of
calculating interest (eg rounding up
provision):
[Insert details]
(g) Index and/or Formula:
[Give all relevant details here/or in a schedule
including name of Calculation Agent and
fall-back provisions]
––––––––––
* Please check with relevant Conditions to ensure that sufficient levels of fall-back provisions are inserted here, including
worst-case scenario.
16
(h) Credit Linked:
[Give all relevant details here/or in a schedule
including name of Calculation Agent and
fall-back provisions]
(i) Automatic/optional conversion from one
interest basis to another:
[insert details, including at whose option]
(j) Party responsible for calculation of interest
(if different from party specified in Conditions):
[Agent/swap counterparty – insert name]
Provisions Regarding Payments
21. * Definition of ”Payment Business Day” for the
purpose of Condition 6(c) if different to that
set out in Condition 6(c):
[Condition 6(c) applies/other – insert details]
22. * Additional or different paying agents:
[
]
Provisions Regarding Redemption/Maturity
23.
Maturity Date:
[
24.
(a) Redemption at [Issuer’s/Borrower’s] option:
[If Yes, insert Optional Redemption
Date(s)/Optional Redemption
Price(s)/notice period (if different
from that specified in the Conditions)]:
[Yes/ No]
[
]
]
(b) Redemption at [Noteholder’s/Lender’s] option: [Yes/ No]
[If Yes, insert Optional Redemption
Date(s)/Optional Redemption
Price(s)/notice period (if different
from that specified in the Conditions)]:
[
]
25.
26.
(c) If redeemable in part: Minimum
Redemption Amount/Higher
Redemption Amount:
[
]/[
(d) Redemption for taxation/Event of Default,
if different from that in the Conditions:
[
]
(e) Other terms applicable on redemption:
[
]
Final Redemption Amount for [each Note/Loan],
including the method, if any, of calculating
the same:
Early Redemption Amount for [each Note/Loan],
payable on redemption for taxation/an Event of
Default and/or the method, if any, of calculating
the same if required to be specified by, or if
different from, the Condition(s):
]
[insert amount or details (including party
responsible for calculation if different from
that specified in paragraph [20](j) above)]
[insert amount or details-check Condition [5(e)/6(e)].
[Party responsible for calculation-insert
details if party different from that specified
in paragraph [20](j) above]
––––––––––
* Not applicable for Loans.
17
General Provisions Applicable to this Issue of [Notes/Loan]
27.
28.
Redenomination applicable:
[Yes/No]
(If Redenomination is applicable, specify the
applicable Day Count Fraction and any provisions
necessary to deal with floating rate interest calculation (including alternative reference rates))
*** Whether Condition 8 of the [Notes/Loan]
does not apply (in which case [Condition 5(b)
of the Notes/Condition 6(b) of the Loan] will
not apply):
[Condition 8 of the [Notes/Loan] does not apply
and [Condition 5(b) of the Notes/Condition 6(b) of
the Loan] does not apply
29.
**
Counterclaims applicable:
[Yes/No]
30.
*
Relevant Clearing System:
[insert details, including, if appropriate, free delivery]
31.
*
Additional sales restrictions:
[insert details]
Method of distribution:
[Non-underwritten]
[Underwritten – insert management group
details here
[Private placement – insert name of Lender(s)]
32.
33.
*
Stabilising Dealer/Manager:
[insert details/None]
34.
*
(a)
Common Code:
[
]
(b)
ISIN Code:
[
]
(c)
Any other securities number:
[
]
(a)
Notes to be listed:
[Yes/No]
(b)
Stock Exchange(s):
[Luxembourg Stock Exchange]
[Frankfurt Stock Exchange]
[Other – insert details]
35.
36.
*
Other relevant terms/special conditions and
modifications:
[
]
The following information is to be included only in the version of the Pricing Supplement which is submitted
to the Relevant Stock Exchange in the case of Notes to be listed on such Exchange:
[37.]
[Listing:
The above Pricing Supplement comprises the details required to list this issue of Notes under the
¤ 30,000,000,000 Debt Issuance Programme of [insert name of Issuer] (as from [insert issue date for
the Notes]).
(as Agent)]
––––––––––
*
Not applicable for Loans.
** Not applicable for Notes.
*** Only applicable for WestLB.
18
The Issuer [and WestLB AG] accepts responsibility for the information contained in this Pricing Supplement.
Signed by
[Issuer]
–––––––––––––––––––––––
–––––––––––––––––––––––
WestLB AG
–––––––––––––––––––––––
19
Inhalt des Pricing Supplement
Das Pricing Supplement in bezug auf jede Tranche von Teilschuldverschreibungen und jedes Darlehen enthält
unter anderem diejenigen Angaben, die auf diese Teilschuldverschreibungen bzw. auf dieses Darlehen anwendbar sind (alle Bezugnahmen auf numerierte Bedingungen sind Bezugnahmen auf die Anleiheedingungen
der betreffenden Teilschuldverschreibungen bzw. die betreffenden Darlehensbedingungen). Dem Pricing
Supplement in bezug auf jede Tranche von Teilschuldverschreibungen werden die Anleihebedingungen der Teilschuldverschreibungen oder, sofern anwendbar, die Kurzversion der Anleihebedingungen (wie vorstehend in
“Form of the Notes” als Reduced Version definiert) anhängen und dem Pricing Supplement in bezug auf jedes
Darlehen werden die Darlehensbedingungen anhängen.
[Datum]
[Bezeichnung [der betreffenden Tranche der Teilschuldverschreibungen/des betreffenden Darlehens] (Angabe
des Teilschuldverschreibungs-/Schuldscheintyps)], die/der aufgrund des ¤30.000.000.000 Debt Issuance Programme begeben wird.
Dieses Pricing Supplement ist in Verbindung mit den Anleihebedingungen der betreffenden Teilschuldverschreibungen/Darlehensbedingungen des betreffenden Darlehens (jeweils die “Bedingungen”) zu lesen, die in
dem im Zusammenhang mit dem Programm erstellten Offering Circular vom 30. Mai 2003 enthalten sind.
[Falls die Teilschuldverschreibungen von der WestLB Finance Curaçao N.V. oder der WestLB Finance Netherlands B.V. ausgegeben werden und innerhalb eines Jahres ab dem Emissionstag zurückgezahlt werden müssen,
muß möglicherweise eine Mindeststückelung von £100 000 oder dem entsprechenden Gegenwert in anderer
Währung festgelegt werden.]
[Angaben als „nicht anwendbar“ bezeichnen oder nicht anwendbare Punkte streichen]
In diesem Pricing Supplement verwendete Begriffe gelten als für die Zwecke der Bedingungen definierte
Begriffe.
[EMITTENTIN:
[WestLB AG/WestLB Finance Curaçao N.V. mit eingetragenem Sitz in Curaçao, Niederländische Antillen/WestLB Finance Netherlands B.V. mit eingetragenem Sitz in Amsterdam, Niederlande]]
[GARANTIN:
WestLB AG]
[KREDITNEHMERIN:
WestLB AG]
Teilschuldverschreibungs-/Darlehenstyp
1.
Art der „Teilschuldverschreibung“/des
Darlehen:
2.
Automatisch oder nach Wahl der [Emittentin/
Kreditnehmerin] und/oder [von Inhabern von
Teilschuldverschreibungen/des Kreditgebers in
[Teilschuldverschreibungen/Darlehen] mit
anderen Zins-/Zahlungsmodalitäten wandelbar:
3.* Falls in Raten rückzahlbare Teilschuldverschreibung/Darlehen, Ratenbetrag(-beträge) in Prozent
pro Jahr / Tilgungstermin(e) einfügen:
––––––––––
* Gilt nicht für Schuldscheine.
20
[Festverzinslich/Variabel verzinslich/Nullkupon/
Doppelwährung/Indexiert (indexierter Zinssatz/
indexierter Rückzahlungsbetrag)/Teilzahlung*/
In Raten rückzahlbar mit Kreditkomponente/
Kombination/Sonstige]
[Ja – Einzelheiten unten in Abschnitt 20 (g) aufführen / nein]
[ ]
4.* Falls Teilzahlungs-Teilschuldverschreibungen,
Betrag jeder Rate / Fälligkeitstermine
nachfolgender Raten / Folgen der Nichtzahlung / Zinssatz einfügen:
[Einzelheiten aufführen]
5.
Falls Doppelwährungs-[Teilschuldverschreibungen/Darlehen], Devisenkurs(e) oder
Berechnungsgrundlage des (der) Devisenkurses
(-kurse) zur Ermittlung des Kapitalbetrags und/oder
der Zinsen / Berechnungsstelle / Ersatzregelung / Person, nach deren Wahl eine
festgelegte Währung zahlbar ist, einfügen:
[ ]
6.
(a) Bedingungen und Pricing Supplement
sind abzufassen in
[Deutscher/Englischer Sprache (mit anliegender
englischer/deutscher Übersetzung) – [Deutsche/
Englische Sprache maßgebend und verbindlich]
(b) Fassung der Garantie:
[Englische/Deutsche Fassung maßgebend und
verbindlich]
Beschreibung [der Teilschuldverschreibungen/des Schuldscheins]
7.* Form der Teilschuldverschreibung(en):
[TEFRA C Global-Teilschuldverschreibung /
TEFRA D vorläufige GlobalTeilschuldverschreibung – Einzelheiten aufführen]
8.* (a) Bestimmungen für den Austausch
von Inhaber-Teilschuldverschreibungen:
[ENTWEDER TEFRA C Global-Teilschuldverschreibung [automatisch / nur unter begrenzten
Umständen / nach Wahl des Inhabers]
austauschbar gegen effektive Teilschuldverschreibungen / ODER vorläufige TEFRA D Global-Teilschuldverschreibung ist in TEFRA D DauerGlobal-Teilschuldverschreibung und des weiteren
[nur unter begrenzten Umständen / nach Wahl
des Inhabers] gegen effektive Teilschuldverschreibungen austauschbar] / ODER vorläufige
TEFRA D Global-Teilschuldverschreibung ist automatisch gegen effektive Teilschuldverschreibungen
austauschbar]
(b) Kosten des Austausches werden
getragen von:
[Der Emittentin/Dem(den) Plazeur(en)]
(c) Kurzversion wird erstellt:
[Ja – siehe beiliegenden Anhang*** /nein]
9.* (a) Den effektiven Teilschuldverschreibungen
werden Talons für zukünftige Zinsscheine
beigefügt:
(b) Termin(e), an dem (denen) die Talons
fällig werden:
10.* (a) Serien-Nr.:
(b) Falls Teil einer bestehenden Serie:
[Ja/nein]
[Einzelheiten angeben]
[ ]
[Ja – Einzelheiten angeben/Nein]
––––––––––
*
Gilt nicht für Schuldscheine.
** Gilt nicht für Teilschuldverschreibungen.
*** Immer dann der Fall, wenn eine Global-Teilschuldverschreibung (sei es direkt oder indirekt) automatisch oder nach Wahl
des Inhabers in effektive Teilschuldverschreibungen austauschbar ist.
21
11.
12.*
(c) Der Nennbetrag jeder Global-Teilschuldverschreibung, falls mehr als eine GlobalTeilschuldverschreibung für die Tranche
ausgegeben wird:
[Anfänglichen Betrag einer jeden GlobalTeilschuldverschreibung (unterschieden nach vorläufigen und Dauer-Global-Teilschuldverschreibungen)
angeben; insgesamt sollten diese Beträge den in
Abschnitt 12(a) genannten Nennbetrag ergeben]
Nicht nachrangig / Nachrangig:
[ ]
(a) Nennbetrag der zu begebenden Teilschuldverschreibungen:
[ ]
(b) Gesamtnennbetrag der Serie (falls mehr als
eine Tranche ausgegeben worden ist):
[ ]
(c) Festgelegte Währung (bzw. Währungen im
Fall von Doppelwährungs-Teilschuldverschreibungen):
[ ]
(d) Festgelegte Stückelung(en):
[ ]
13.** (a) Kapitalbetrag des Darlehens:
[ ]
(b) Festgelegte Währung (bzw. Währungen
im Fall von Doppelwährungsschuldscheinen): [ ]
(c) Zusätzliche Anzahl von Abtretungen
(falls mehr als dreimal):
[ ]
(d) Mindestkapitalbetrag bei Abtretungen:
[ ]
14.
Emissionspreis:
[ ]
15.
[Emissions-/Auszahlungs]datum:
[ ]
16.
Erster Zinslauftag (einfügen, sofern abweichend
vom [Emissions-/Auszahlungs-]datum):
[ ]
Bestimmungen in bezug auf Verzinsung (soweit anwendbar)
Festverzinsliche [Teilschuldverschreibungen/Darlehen]
17.
(a) Festzinssatz(-sätze):
[ ] % per annum
(b) Festzinstermin(e):
[ ]
(c) Anfänglicher unregelmäßiger Kuponbetrag
je Stückelung:
[Beträge (Währung und Stückelung) festlegen]
(d) Letzter unregelmäßiger Kuponbetrag
je Stückelung:
[Beträge (Währung und Stückelung) festlegen]
(e) Zinstagequotient:
––––––––––
*
Gilt nicht für Schuldscheine.
22
[Actual/Actual (ISMA), 30/360 oder sonstigen
Zinstagequotienten festlegen]
(Hinweis: Falls Zinsen nicht auf regelmäßiger Basis
zu zahlen sind (weil zum Beispiel unregelmäßige
Kuponbeträge festgelegt sind) ist Actual/Actual
(ISMA) möglicherweise kein geeigneter
Zinstagequotient)
(f) Festsetzungstag(e):
(g) Sonstige Bedingungen in bezug auf
die Zinsberechnung:
[ ] eines jeden Jahres
[Zinstermine angeben, außer wenn es lange oder
kurze Perioden gibt. In diesen Fällen regelmäßige
Zinstermine angeben.]
(Anmerkung: Nur relevant, wenn der Zinstagequotient Actual/Actual (ISMA) ist)
[ ]
Nullkupon-[Teilschuldverschreibungen/Darlehen]
18.
(a) Amortisationssatz:
[Einzelheiten einfügen]
(b) Referenzpreis:
(c) Sonstige Formel oder Basis zur Bestimmung der Emissionsrendite:
(e) Zinstagequotient in bezug auf den
Betrag bei vorzeitiger Rückzahlung
und verspätete Zahlungen:
[Nr. (5(e)/6(e)] Beträge bei vorzeitiger
Rückzahlung/Nr. [5(j)/6(h)] – Verspätete Zahlung auf
Nullkupon-Teilschuldverschreibungen/Darlehen]
anwenden/sonstigen Zinstagequotienten festlegen]
Variabel verzinsliche [Teilschuldverschreibungen/Darlehen] und Teilschuldverschreibungen/Darlehen mit
indexiertem Zinssatz und [Teilschuldverschreibungen/Darlehen] mit Kreditkomponente
19.
(a) Festgelegte Periode(n) oder festgelegter
(festgelegte) Zinstermin(e):
[Hinweis: entweder eine Periode bzw. Perioden
angeben oder ein bestimmtes Datum bzw. Daten]
(b) Marge(n):
[plus/minus] [ ] % per annum
(c) Mindest-Zinssatz (soweit anwendbar):
[ ] % per annum
(d) Höchst-Zinssatz (soweit anwendbar):
[ ] % per annum
20.* Art der Zinsfestsetzung:
(a) Falls Bildschirmnotierung:
(i) Referenzzinsatz:
(ii) Zinsfestsetzungstag(e):
[Bildschirmnotierung/Referenzbanken/ Index/
Formel/sonstige – Einzelheiten einfügen* ]
[ ]
(Entweder LIBOR, EURIBOR oder ein anderer
Referenzzinssatz, wenngleich im letzten Fall zusätzliche Angaben, einschließlich Ersatzregelungen,
erforderlich sind)
[ ]
(Zweiter Londoner Geschäftstag vor Beginn einer
jeden Zinsperiode falls LIBOR (mit Ausnahme von
Sterling-LIBOR), erster Tag der Zinsperiode
falls Sterling-LIBOR bzw. zweiter Tag, an dem
das TARGET System geöffnet ist, vor Beginn
einer jeden Zinsperiode falls EURIBOR)
––––––––––
* Bitte anhand der jeweiligen Bedingungen überprüfen, um sicherzustellen, daß hier ausreichende Ersatzregelungen,
einschließlich solcher für den ungünstigsten Fall, aufgeführt werden.
23
(iii) Relevante Bildschirmseite:
[ ]
(Wenn die relevante Bildschirmseite im Fall
von EURIBOR nicht [Reuters 3000 Seite
EURIBOR01] ist, ist sicherzustellen, daß die
betreffende Seite einen Mischzinssatz ausweist,
bzw. sind die Ersatzregelungen entsprechend
anzupassen)
(iv) Referenzbanken (falls andere als die in
Nr. 3(b)(iii)(D)/Nr. 4(b)(iii) (D) genannten):
[ ]
(b) Falls Zinssatz auf andere Weise ermittelt
wird, Einzelheiten einfügen (einschließlich
Zinssatz/Marge/Ersatzregelungen):
[ ]
(c) Geschäftstagskonvention:
[Folgender Geschäftstag (Modifiziert) / Variable
Zinssatz Konvention / Folgender Geschäftstag/
Vorausgehender Geschäftstag / Andere Übereinkunft – Einzelheiten einfügen]
(d) (i) Zusätzliche Finanzzentren:
(ii) Anwendbare Geschäftstagsdefinition
(sofern abweichend von derjenigen
in Nr. 3(b)(i)):
[ ]
[Nr. 3(b)(i) ist anwendbar/sonstige Vereinbarung –
Einzelheiten einfügen]
(e) Zinstagequotient:
[Actual/365 oder Actual/Actual] (ISDA)/
[Actual/365 (Fixed)]/[Actual/360]/
[30/360 oder 360/360 oder Bond Basis]
[30E/360 oder Eurobond Basis]
(f) Andere Bestimmungen hinsichtlich
der Zinsberechnungsmethode
(z.B. Rundungsvorschriften):
(g) Index und / oder Formel:
[Alle relevanten Einzelheiten hier einfügen/oder in
einem Anhang, einschließlich des Namens der
Berechnungsstelle und Ersatzregelungen]
(h) Kreditkomponente:
[Alle relevanten Einzelheiten hier einfügen/oder in
einem Anhang, einschließlich des Namens der
Berechnungsstelle und Ersatzregelungen]
(i) Automatischer / wahlweiser Wechsel von
einer Zinsbasis zu einer anderen:
(j) Für die Zinsberechnung zuständige Partei
(falls es sich um eine andere als die in den
Bedingungen festgelegte Partei
handelt):
[Einzelheiten einfügen, einschließlich nach wessen
Wahl]
[Agent/Swap-Partner – Namen einfügen]
Bestimmungen hinsichtlich Zahlungen
21.* Definition „Geschäftstag für Zahlungszwecke“
für die Zwecke von Nr. 6(c), sofern abweichend
von der dortigen Definition:
[Nr. 6(c) ist anwendbar]
[Sonstige – Einzelheiten einfügen]
22.* Zusätzliche oder andere Zahlstellen:
[ ]
––––––––––
* Nicht anwendbar für Schuldscheine.
24
Bestimmungen betreffend Rückzahlung / Fälligkeit
23. Fälligkeitstermin:
24. (a) Rückzahlung nach Wahl der [Emittentin/
Kreditnehmerin]:
[Falls ja, wahlweisen (wahlweise)
Rückzahlungstermin(e) / wahlweisen
(wahlweise) Rückzahlungsbetrag
(-beträge) / Kündigungsfrist (falls
abweichend von den in den Bedingungen festgelegten) angeben:]
[ ]
[Ja/nein]
[ ]
(b) Rückzahlung nach Wahl des [Inhabers von
Teilschuldverschreibungen/Kreditgebers]:
[Falls ja, wahlweisen (wahlweise)
Rückzahlungstermin (-termine) / wahlweisen (wahlweise)Rückzahlungsbetrag
(-beträge)/Kündigungsfrist (falls
abweichend von den in den Bedingungen festgelegten) angeben:]
[ ]
(c) Falls teilweise rückzahlbar: Mindest-Rückzahlungsbetrag/höherer Rückzahlungsbetrag:
[ ]/[ ]
(d) Rückzahlung aus Steuergründen/im Fall von
Kündigungsgründen, sofern abweichend
von denen in den Bedingungen:
[ ]
(e) Andere auf die Rückzahlung anwendbare
Bestimmungen:
[ ]
25. Rückzahlungsbetrag jeder Teilschuldverschreibung/jedes Darlehens bei Endfälligkeit,
einschließlich der Berechnungsmethode
(soweit anwendbar):
26. Rückzahlungsbetrag [jeder Teilschuldverschreibung/jedes Darlehens] bei vorzeitiger
Rückzahlung aus Steuergründen / im Falle eines
Kündigungsgrundes und /oder (soweit zutreffend)
die Methode zur Berechnung desselben, sofern
sie nach den Bedingungen näher bestimmt
werden muß oder von den Bedingungen
abweicht:
[Ja/nein]
[Betrag oder Einzelheiten einfügen (einschließlich
der für die Berechnung zuständigen Partei, soweit
von der oben in Abschnitt 20(j) genannten
abweichend)]
[Betrag oder Einzelheiten einfügen – Nr. 5(e)/6(e)
überprüfen]. [Für die Berechnung zuständige Partei –
Einzelheiten einfügen, wenn diese Partei von der
oben in Abschnitt 20(j) genannten abweicht]
25
Allgemeine Bestimmungen hinsichtlich der Begebung [dieser Teilschuldverschreibung(en)/dieses
Darlehens]
27.
Redenominierung anwendbar:
[Ja/nein]
[Falls Redenominierung anwendbar ist, Angabe des
anwendbaren Zinstagequotienten und sonstiger
Bestimmungen zur Berechnung variabler Zinssätze
(einschließlich alternativer Referenzzinsätze)]
28.*** Falls Nr. 8 der Darlehensbedingungen
(der Teilschuldverschreibungen) nicht
anwendbar ist (in welchem Fall (Nr. 5(b)
der Teilschuldverschreibungen/Nr. 6(b) der
Darlehensbedingungen nicht anwendbar ist):
[Nr. 8 (der Teilschuldverschreibungen/des
Darlehens) ist nicht anwendbar und [Nr. 5(b)
(der Teilschuldverschreibungen/Nr. 6(b) des
Darlehens) ist nicht anwendbar]
29.**
Gegenansprüche anwendbar:
[Ja/nein]
30.*
Relevantes Abrechnungssystem:
[Einzelheiten einfügen, einschließlich freier
Auslieferung, falls anwendbar]
31.*
Zusätzliche Verkaufsbeschränkungen:
32.
Art der Plazierung:
[Nicht syndiziert]
[syndiziert – Angabe des Konsortiums hier
[Privatplazierung – Namen des (der) Kreditgeber(s)
einfügen]
33.*
Stabilising Dealer/Manager:
[Einzelheiten aufführen/keiner]
34.*
(a) Common Code:
[ ]
(b) ISIN Code:
*
(c) Sonstige Wertpapiernummer:
[ ]
[ ]
(a) Börsennotierung:
[Ja/nein]
(b) Wertpapierbörse(n):
[Luxemburger Börse]
[Frankfurter Wertpapierbörse]
[Andere – Einzelheiten aufführen]
35.*
36.
Andere wesentliche Bestimmungen / spezielle
Bedingungen und Anpassungen:
[ ]
Falls die Teilschuldverschreibungen an einer Börse notiert werden, ist die folgende Information nur in die
Fassung des Pricing Supplement aufzunehmen, das bei der betreffenden Börse eingereicht wird:
[37.]
[Antrag auf Börseneinführung:
Das obige Pricing Supplement umfaßt die für die Börseneinführung dieser Emission von Teilschuldverschreibungen erforderlichen Einzelheiten gemäß dem ¤ 30.000.000.000 Debt Issuance Programm der [Namen der Emittentin einfügen] (vom [Emissionsdatum der Teilschuldverschreibungen]).
(als Agent)]
––––––––––
* Gilt nicht für Schuldscheine.
*** Gilt nur für die WestLB.
26
Die Emittentin [und WestLB AG] übernimmt die Verantwortung für die in diesem Pricing Supplement enthaltenen Informationen.
Unterzeichnet durch
[Emittentin]
–––––––––––––––––––––––
–––––––––––––––––––––––
WestLB AG
–––––––––––––––––––––––
27
Terms and Conditions
of the Notes
Anleihebedingungen der
Teilschuldverschreibungen
The following are the Terms and Conditions of the Notes of
each Series issued by the Issuer specified in the Pricing
Supplement which (as supplemented or modified in accordance with the provisions of the applicable Pricing Supplement) will be physically attached together with the applicable Pricing Supplement to each global Note representing
such Series of Notes and (subject to deletion of non-applicable provisions and consequential modifications) endorsed
upon each definitive Note, if any, issued in exchange for the
global Note(s) representing the Notes of each Series. Where
the Notes of a Series are to be represented by a global Note
which is exchangeable whether directly or indirectly automatically or at the option of the holder into definitive Notes
(or otherwise if so specified in the applicable Pricing Supplement) the Reduced Version (as defined in “Form of the
Notes” above) will be physically attached to such global
Note and endorsed upon each definitive Note issued in
exchange therefor.
Bei dem nachstehenden Text handelt es sich um die Anleihebedingungen jeder Serie von Teilschuldverschreibungen,
die von der im Pricing Supplement genannten Emittentin
begeben werden; diese Anleihebedingungen werden (durch
die Bestimmungen des betreffenden Pricing Supplement
ergänzt oder angepasst) zusammen mit dem betreffenden
Pricing Supplement jeder Globalurkunde beigeheftet, welche diese Serie von Teilschuldverschreibungen verbrieft,
und (vorbehaltlich der Streichung nicht anwendbarer Bestimmungen und dementsprechender Anpassungen) auf
der Rückseite jeder effektiven Teilschuldverschreibung –
sofern eine solche im Austausch gegen die die Teilschuldverschreibungen einer jeden Serie verbriefende(n) Globalurkunden ausgegeben wird – abgedruckt. Falls die Teilschuldverschreibungen einer Serie durch eine Global-Teilschuldverschreibung repräsentiert werden, die entweder
direkt oder indirekt automatisch oder nach Wahl des
Inhabers gegen effektive Teilschuldverschreibungen (oder
anderweitig, falls im betreffenden Pricing Supplement festgelegt) austauschbar ist, wird die Kurzfassung (wie vorstehend in „Form of the Notes“ als Reduced Version definiert)
an eine solche Global-Teilschuldverschreibung körperlich
angeheftet und auf der Rückseite jeder im Austausch dafür
ausgegebenen effektiven Teilschuldverschreibung abgedruckt.
If this Note forms part of a Series (as defined below) which
is initially represented by a global Note to which U.S.
Treasury Regulation Section 1.163-5(c)(2)(i)(C) applies
(a ”TEFRA C Global Note”), such TEFRA C Global Note will
be exchangeable as specified in the applicable Pricing
Supplement in whole or (subject to the Notes which continue
to be represented by the TEFRA C Global Note being
regarded by the Relevant Clearing System (as defined in
Condition 1 below) as fungible with the definitive Notes
issued in partial exchange for such TEFRA C Global Note) in
part for definitive Notes with, where applicable, Receipts,
Coupons and Talons (each as defined below) attached in the
following circumstances:
Falls diese Teilschuldverschreibung Teil einer Serie (wie
unten definiert) ist, die anfänglich durch eine Global-Teilschuldverschreibung repräsentiert wird, auf die die U.S.
Treasury Regulation Section 1.163-5(c)(2)(i)(C) anwendbar
ist (eine „TEFRA C Global-Teilschuldverschreibung“), ist
eine solche TEFRA C Global-Teilschuldverschreibung entsprechend den Festlegungen im Pricing Supplement unter
den nachfolgend beschriebenen Umständen ganz oder
(unter dem Vorbehalt, daß die Teilschuldverschreibungen,
die weiterhin durch eine TEFRA C Global-Teilschuldverschreibung repräsentiert werden, von dem betreffenden
Abrechnungssystem (wie nachstehend in Nr. 1 definiert)
als mit den effektiven Teilschuldverschreibungen, die in
teilweisem Austausch gegen eine TEFRA C GlobalTeilschuldverschreibung ausgegeben wurden, fungibel
angesehen werden) teilweise gegen effektive Teilschuldverschreibungen und, sofern anwendbar, anhängende Rückzahlungsscheine, Zinsscheine und Talons (wie jeweils nachstehend definiert) austauschbar:
(a) automatically not more than 120 days after the
relevant Issue Date;
(a) automatisch spätestens 120 Tage nach dem betreffenden Emissionsdatum;
(b) if the Relevant Clearing System is closed for business for a continuous period of 14 days (other than by
reason of public holidays) or announces an intention to
cease business permanently;
(b) falls das betreffende Abrechnungssystem für eine
ununterbrochene Periode von 14 Tagen (mit Ausnahme
von öffentlichen Feiertagen) für Geschäfte geschlossen
ist oder ankündigt, daß es eine dauerhafte Einstellung
seiner Geschäftstätigkeit beabsichtigt;
(c) if otherwise the Issuer or the Guarantor would suffer
a material disadvantage in respect of the Notes as a
result of a change in the laws in the country where it is
incorporated which it would not suffer were the Notes in
definitive form; or
(c) wenn anderenfalls die Emittentin oder die Garantin
einen erheblichen Nachteil in bezug auf die Teilschuldverschreibungen als Ergebnis einer Änderung der Gesetze in dem Staat, in dem sie gegründet ist, erleiden
würde, den sie nicht erleiden würde, wenn die Teilschuldverschreibungen in effektiver Form wären; oder
(d) at the option of the holder of such TEFRA C Global
Note upon request by the holder of the relevant Note.
(d) nach Wahl des Inhabers einer solchen TEFRA C
Global-Teilschuldverschreibung auf Verlangen des
Inhabers der betreffenden Teilschuldverschreibung.
If this Note forms part of a Series which is initially represented by a global Note to which U.S. Treasury Regulation
Section 1.163-5 (c) (2) (i) (D) applies (a “TEFRA D Global
Note”), on and after the date (the ”Exchange Date”) which
is 40 days after the date on which such temporary TEFRA D
Global Note is issued, interests in the temporary TEFRA D
Global Note will be exchangeable (free of charge) either for
interests in a permanent TEFRA D Global Note without
Receipts, Coupons or Talons, (each as defined below), if
so specified therein, or for definitive Notes (as specified in
Falls diese Teilschuldverschreibung Teil einer Serie ist, die
anfänglich durch eine Global-Teilschuldverschreibung
repräsentiert wird, auf die die U.S. Treasury Regulation
Section 1.163-5(c)(2)(i)(D) anwendbar ist (eine „TEFRA D
Global-Teilschuldverschreibung“), sind an und nach dem
Tag (der „Austausch-Tag“), der 40 Tage nach dem Tag
liegt, an dem eine solche vorläufige TEFRA D Global-Teilschuldverschreibung ausgegeben wird, Anteile an der vorläufigen TEFRA D Global-Teilschuldverschreibung (spesenfrei) entweder gegen Anteile an einer TEFRA D Dauer-
28
the applicable Pricing Supplement) with, where applicable,
Receipts, Coupons and Talons in accordance with the terms
of the temporary TEFRA D Global Note, against certification
of non-U.S. beneficial ownership (in the form set out in the
temporary TEFRA D Global Note) as required by U.S. Treasury regulations unless certification has already been given in relation to any payments. Exchange of a temporary
TEFRA D Global Note for interests in a permanent TEFRA D
Global Note will only be made if definitive Notes have not
already been issued in exchange for the permanent TEFRA
D Global Note. If definitive Notes have already been issued,
the temporary TEFRA D Global Note may only thereafter be
exchanged for definitive Notes pursuant to the terms thereof.
Global-Teilschuldverschreibung ohne Rückzahlungsscheine, Zinsscheine oder Talons (jeweils wie nachstehend definiert), falls darin so vorgesehen, oder gegen effektive Teilschuldverschreibungen (wie im betreffenden Pricing
Supplement bestimmt) mit – sofern anwendbar – Rückzahlungsscheinen, Zinsscheinen und Talons entsprechend den
Bedingungen der vorläufigen TEFRA D Global-Teilschuldverschreibung austauschbar, wobei der von den U.S. Treasury Regulations geforderte Nachweis (in der in der vorläufigen TEFRA D Global-Teilschuldverschreibung vorgesehenen Form) zu erbringen ist, daß der Eigentümer keine
US-Person ist, es sei denn, ein solcher Nachweis ist bereits
in bezug auf irgendwelche Zahlungen erfolgt. Ein Austausch einer vorläufigen TEFRA D Global-Teilschuldverschreibung gegen Anteile an einer TEFRA D Dauer-GlobalTeilschuldverschreibung erfolgt nur, wenn nicht bereits effektive Teilschuldverschreibungen im Austausch gegen die
TEFRA D Dauer-Global-Teilschuldverschreibung ausgegeben worden sind. Falls effektive Teilschuldverschreibungen
bereits ausgegeben worden sind, kann die vorläufige TEFRA D Global-Teilschuldverschreibung anschließend gemäß ihren Bedingungen nur gegen effektive Teilschuldverschreibungen ausgetauscht werden.
A permanent TEFRA D Global Note will be exchangeable for
definitive Notes as specified in the applicable Pricing
Supplement in the same manner as specified under (b), (c)
or (d) above, construing references to a TEFRA C Global
Note as references to a permanent TEFRA D Global Note.
Eine TEFRA D Dauer-Global-Teilschuldverschreibung kann
wie im Pricing Supplement festgesetzt in der vorstehend
unter (b), (c) oder (d) bestimmten Weise gegen effektive
Teilschuldverschreibungen ausgetauscht werden, wobei Bezugnahmen auf eine TEFRA C Global-Teilschuldverschreibung als Bezugnahmen auf eine TEFRA D Dauer-GlobalTeilschuldverschreibung ausgelegt werden sollen.
In the case of an exchange under (a), (b) or (c) above, the
costs of such exchange will be at the expense of the Issuer
or the Guarantor and in the case of an exchange under (d)
above, the costs of such exchange will be borne as specified
in the applicable Pricing Supplement. Such exchange, except in the case of an exchange under (a) or (b) above,
where no such notice is required, shall be made upon not
less than 60 days’ written notice to the Agent (expiring at
least 30 days after the Exchange Date in the case of a
permanent TEFRA D Global Note) from the Issuer or the
Guarantor or, as the case may be, from Euroclear or Clearstream Banking, société anonyme (“Clearstream, Luxembourg”) (where they are the Relevant Clearing System)
acting on the instructions of the holders of interests in the
TEFRA C Global Note or permanent TEFRA D Global Note
or, in the case of a TEFRA C Global Note or permanent
TEFRA D Global Note held otherwise than on behalf of
Euroclear and/or Clearstream, Luxembourg, from the holder thereof. At present, neither Euroclear nor Clearstream,
Luxembourg regard Notes in global form as fungible with
Notes in definitive form.
Im Falle eines Austausches unter vorstehender (a), (b) oder
(c) gehen die Kosten eines solchen Austausches zu Lasten
der Emittentin oder der Garantin, und im Fall eines Austausches unter vorstehender (d) werden die Kosten entsprechend der Festlegung im betreffenden Pricing Supplement getragen. Ein solcher Austausch (mit Ausnahme eines
Austausches unter vorstehender (a) oder (b)) soll aufgrund
einer vorherigen schriftlichen Benachrichtigung mit einer
Frist von wenigstens 60 Tagen (die im Fall einer TEFRA D
Dauer-Global-Teilschuldverschreibung spätestens 30 Tage
nach dem Austausch-Tag abläuft) an den Agent durch die
Emittentin oder die Garantin oder, falls anwendbar, durch
Euroclear oder Clearstream Banking, société anonyme
(“Clearstream, Luxembourg”), (falls diese das relevante Abrechnungssystem sind) – nach den Anweisungen von Inhabern von Anteilen an der TEFRA C Global-Teilschuldverschreibung oder der TEFRA D-Dauer-Global-Teilschuldverschreibung handelnd – oder, im Falle einer TEFRA C Global-Teilschuldverschreibung oder einer TEFRA D DauerGlobal-Teilschuldverschreibung, die anderweitig als für Euroclear und/oder Clearstream, Luxembourg gehalten wird,
durch deren Inhaber erfolgen. Gegenwärtig erachten weder
Euroclear noch Clearstream, Luxembourg, Teilschuldverschreibungen in globaler Form als mit Teilschuldverschreibungen in effektiver Form fungibel.
This Note is one of a series of Notes issued by either WestLB
AG, WestLB Finance Netherlands B.V. or WestLB Finance
Curaçao N.V. (each an ”Issuer”) pursuant to the Agency
Agreement (defined below). References herein to the ”Issuer” shall include references to the party specified as such in
the applicable Pricing Supplement (as defined below) as
well as any Substituted Debtor pursuant to Condition 14.
References herein to the ”Notes” shall be references to the
Notes of this Series (as defined below) and shall mean (i) in
relation to any Notes represented by a global Note, units of
the lowest Specified Denomination in the Specified Currency of issue, (ii) definitive Notes issued in exchange (or part
exchange) for a global Note and (iii) any global Note. The
Notes, the Receipts and the Coupons are issued pursuant to
an amended and restated Agency Agreement (as amended
and supplemented from time to time the ”Agency Agreement”) dated 30th May, 2003 and made between, inter alia,
each Issuer, the Guarantor (as defined below), WestLB AG
as issuing and principal paying agent and, if so specified in
the applicable Pricing Supplement, as calculation agent (in
this capacity the ”Agent”, which expression shall include
any successor agent or any other calculation agent specified in the applicable Pricing Supplement) and the other
Diese Teilschuldverschreibung ist eine von mehreren einer
Serie von Teilschuldverschreibungen, die von der WestLB
AG, der WestLB Finance Netherlands B.V. oder der WestLB
Finance Curaçao N.V. (jede von ihnen „Emittentin“ genannt) gemäß dem Agency Agreement (wie nachstehend
definiert) ausgegeben wird. Bezugnahmen in diesen Anleihebedingungen auf die „Emittentin“ schließen Bezugnahmen auf die im betreffenden Pricing Supplement (wie nachstehend definiert) als Emittentin bezeichnete Partei sowie
jede Ersatzschuldnerin nach Nr. 14 ein. Bezugnahmen in
diesen Anleihebedingungen auf die „Teilschuldverschreibungen“ sind Bezugnahmen auf die Teilschuldverschreibungen dieser Serie (wie nachstehend definiert) und beinhalten (i) hinsichtlich aller Teilschuldverschreibungen, die
durch eine Global-Teilschuldverschreibung verbrieft sind,
Einheiten in der kleinsten festgelegten Stückelung in der
festgelegten Währung der Emission, (ii) definitive Teilschuldverschreibungen, die im Austausch (oder teilweisen
Austausch) gegen eine Global-Teilschuldverschreibung ausgegeben werden, sowie (iii) jede Global-Teilschuldverschreibung. Die Teilschuldverschreibungen, die Rückzahlungsscheine und die Zinsscheine werden aufgrund eines abgeänderten und neu gefaßten Agency Agreement (in der je-
29
paying agents named therein (together with the Agent, the
”Paying Agents”, which expression shall include any additional or successor paying agents).
weils abgeänderten und ergänzten Form das „Agency Agreement“) mit Datum vom 30. Mai 2003 ausgegeben, das unter
anderem zwischen jeder Emittentin, der Garantin (wie nachstehend definiert), der WestLB AG als Emissionsstelle und
Hauptzahlstelle und, wenn im betreffenden Pricing Supplement entsprechend festgelegt, als Berechnungsstelle (in
dieser Eigenschaft der „Agent“; dieser Begriff schließt jeden nachfolgenden Agent sowie jede andere im betreffenden Pricing Supplement festgelegte Berechnungsstelle ein)
und den anderen darin genannten Zahlstellen (zusammen
mit dem Agent, die „Zahlstellen“; dieser Begriff schließt
jede zusätzliche oder nachfolgende Zahlstelle ein) abgeschlossen wird.
In these Conditions ”Noteholder” means (i) the owner of
any definitive Note or (ii) the holder of a co-ownership
interest or other interest in Notes (in global or definitive
form) held in the Relevant Clearing System, in proportion to
such Notes deposited for such holder’s account with
a Custodian (as defined in Condition 18(e) below),
and ”Couponholder”, ”Receiptholder” and ”Talonholder”
mean (a) the owner of any Coupon, Receipt or Talon, as the
case may be, or (b) the holder of a co-ownership interest or
other interest in Coupons, Receipts or Talons, as the case
may be, held in the Relevant Clearing System, in proportion
to such Coupons, Receipts or Talons, as the case may be,
deposited for such holder’s account with a Custodian (as
defined in Condition 18(e) below). References herein
to a holder of Notes, Coupons, Receipts or Talons shall be
construed accordingly.
In diesen Anleihebedingungen ist ein „Inhaber von Teilschuldverschreibungen“ (i) der Eigentümer einer effektiven
Teilschuldverschreibung oder (ii) der Inhaber eines Miteigentumsanteils oder eines anderen Anteils an im relevanten
Abrechnungssystem gehaltenen Teilschuldverschreibungen
(in globaler oder effektiver Form) im Verhältnis zu den für
Rechnung dieses Inhabers bei einer Depotbank (wie unten
unter Nr. 18(e) definiert) gehaltenen Teilschuldverschreibungen, und „Inhaber von Zinsscheinen“, „Inhaber von
Rückzahlungsscheinen“ und „Inhaber von Talons“ ist (a)
der Inhaber eines Zinsscheins, eines Rückzahlungsscheins
bzw. eines Talons, oder (b) der Inhaber eines Miteigentumsanteils oder eines anderen Anteils an im relevanten
Abrechnungssystem gehaltenen Zinsscheinen, Rückzahlungsscheinen bzw. Talons im Verhältnis zu den für Rechnung dieses Inhabers bei einer Depotbank (wie unten unter
Nr. 18(e) definiert) gehaltenen Zinsscheinen, Rückzahlungsscheinen bzw. Talons.
The Pricing Supplement for this Note is attached hereto and
supplements these Terms and Conditions and may specify
other terms and conditions which shall, to the extent so
specified or to the extent inconsistent with these Terms and
Conditions, replace, supplement or modify these Terms and
Conditions for the purposes of this Note. References herein
to the “applicable Pricing Supplement” are to the Pricing
Supplement attached hereto.
Das Pricing Supplement für diese Teilschuldverschreibung
ist den Anleihebedingungen beigefügt und ergänzt diese
Anleihebedingungen; es kann andere Anleihebedingungen
festlegen, die soweit darin bestimmt oder soweit sie im
Widerspruch zu diesen Anleihebedingungen stehen, diese
Anleihebedingungen für die Zwecke dieser Teilschuldverschreibung ersetzen, ergänzen oder anpassen. Bezugnahmen in diesem Dokument auf das „betreffende Pricing Supplement“ beziehen sich auf das hier anliegende Pricing
Supplement.
As used herein, “Series” means each original issue of Notes
together with any further issues expressed to form a single
series with the original issue and the terms of which (save
for the Issue Date, the Interest Commencement Date and/or
the Issue Price (as indicated in the applicable Pricing Supplement)) are identical (including whether or not the Notes
are listed). As used herein, “Tranche” means all Notes of the
same Series with the same Issue Date and Interest Commencement Date.
Im folgenden bedeutet „Serie“ jede ursprüngliche Emission von Teilschuldverschreibungen zusammen mit jeder
weiteren Emission, die bestimmt, daß sie mit der ursprünglichen Emission eine einheitliche Serie bildet, deren Bedingungen (mit Ausnahme des Emissionsdatums, des ersten
Zinslauftages und/oder des Emissionspreises (wie im betreffenden Pricing Supplement bestimmt)) ansonsten identisch sind (einschließlich einer etwaigen Börseneinführung).
Im folgenden bedeutet „Tranche“ alle Teilschuldverschreibungen derselben Serie mit demselben Emissionsdatum
und demselben ersten Zinslauftag.
In relation to Notes issued by WestLB Finance Curaçao N.V.
or WestLB Finance Netherlands B.V., the Noteholders, the
Receiptholders and the Couponholders will be entitled to
the benefit of (a) in the case of an issue of Senior Notes, the
senior guarantee agreement (the “Senior Guarantee”) or (b)
in the case of an issue of Subordinated Notes, the subordinated guarantee agreement (the “Subordinated Guarantee”), in each case dated 30th May, 2003 entered into by the
Guarantor (as defined below) with Merrill Lynch International. The Senior Guarantee and the Subordinated Guarantee
(together the “Guarantee Agreements”) will each take the
form of a contract in favour of the Noteholders, the
Receiptholders and the Couponholders as third party beneficiaries. The original of the Senior Guarantee and the Subordinated Guarantee is held by Merrill Lynch International,
Merrill Lynch Financial Centre, 2 King Edward Street,
London EC1A 1HQ.
Hinsichtlich Teilschuldverschreibungen, die von der
WestLB Finance Curaçao N.V. oder der WestLB Finance
Netherlands B.V. begeben werden, sind die Inhaber von
Teilschuldverschreibungen, Rückzahlungsscheinen und
Zinsscheinen anspruchsberechtigt aus (a) einer nicht nachrangigen Garantievereinbarung (die „nicht nachrangige Garantie“) im Falle einer Emission von nicht nachrangigen
Teilschuldverschreibungen oder (b) einer nachrangigen
Garantievereinbarung (die „nachrangige Garantie“) im Falle einer Emission von nachrangigen Teilschuldverschreibungen; diese Garantievereinbarungen wurden von der
Garantin (wie nachstehend definiert) mit der Merrill Lynch
International, abgeschlossen und tragen jeweils das Datum
vom 30. Mai 2003. Die nicht nachrangige Garantie und die
nachrangige Garantie (zusammen die „Garantievereinbarungen“) haben jeweils die Form eines Vertrages zugunsten der Inhaber von Teilschuldverschreibungen, Rückzahlungsscheinen und Zinsscheinen als Drittbegünstigte. Das
Original der nicht nachrangigen Garantie und der nachrangigen Garantie wird von der Merrill Lynch International,
Merrill Lynch Financial Centre, 2 King Edward Street,
London EC1A 1HQ gehalten.
30
In these Terms and Conditions the “Guarantor” shall mean
WestLB AG in its capacity as guarantor in respect of any
Notes issued by WestLB Finance Curaçao N.V. or WestLB
Finance Netherlands B.V.; and references herein to the
Guarantor are, accordingly, applicable only in the context of
such Notes.
In diesen Anleihebedingungen ist die „Garantin“ die
WestLB AG in ihrer Eigenschaft als Garantin in bezug auf
etwaige von der WestLB Finance Curaçao N.V. oder der
WestLB Finance Netherlands B.V. begebene Teilschuldverschreibungen; Bezugnahmen in diesen Anleihebedingungen auf die Garantin sind daher nur im Zusammenhang mit
solchen Teilschuldverschreibungen anwendbar.
Words and expressions defined in the applicable Pricing
Supplement shall have the same meanings where used in
these Terms and Conditions unless the context otherwise
requires or unless otherwise stated.
Worte und Begriffe, die im betreffenden Pricing Supplement definiert sind, sollen, wenn sie in diesen Anleihebedingungen verwendet werden, die gleiche Bedeutung
haben, falls nicht der Zusammenhang etwas anderes erfordert oder etwas anderes ausdrücklich angegeben ist.
Copies of the applicable Pricing Supplement and the Guarantee Agreement are available for inspection at the specified offices of each of the Agent and the Paying Agents save
that a Pricing Supplement relating to an unlisted Note will
only be available for inspection by a Noteholder upon proof
satisfactory to the relevant Paying Agent as to his interest in
the Note.
Kopien des betreffenden Pricing Supplement und der
Garantievereinbarung sind in den bezeichneten Geschäftsstellen des Agent und der Zahlstellen erhältlich; ein Pricing
Supplement in bezug auf eine nicht-börsennotierte Teilschuldverschreibung ist jedoch nur zur Einsichtnahme
durch einen Inhaber von Teilschuldverschreibungen nach
zufriedenstellendem Nachweis des Interesses an der Teilschuldverschreibung gegenüber der betreffenden Zahlstelle zugänglich.
1. Form, Denomination and Title
1. Form, Nennbetrag und Eigentumsrecht
The Notes are in bearer form and, in the case of definitive
Notes, serially numbered, in the Specified Currency and the
Specified Denomination(s) specified in the applicable Pricing Supplement.
Die Teilschuldverschreibungen haben die Form von Inhaber-Teilschuldverschreibungen und sind – im Fall von
effektiven Teilschuldverschreibungen – mit Seriennummern
versehen, in der im Pricing Supplement festgelegten Währung sowie in der(den) festgelegten Stückelung(en).
Each global Note, definitive Note, Receipt and Coupon (if
any) bears the signatures of two authorised persons of the
relevant Issuer (which signatures may be facsimile
signatures). Each Note shall also bear the handwritten
signature of a control officer of the Agent. Each definitive
Note, Receipt and each Coupon, if any, shall bear the
embossed emblem of the Issuer.
Jede Global-Teilschuldverschreibung, jede effektive Teilschuldverschreibung, jeder Rückzahlungsschein und jeder
Zinsschein, sofern anwendbar, trägt die Unterschriften
von zwei von der betreffenden Emittentin für diesen Zweck
bevollmächtigten Personen (deren Unterschriften FaksimileUnterschriften sein können). Jede Teilschuldverschreibung trägt ferner die eigenhändige Unterschrift
eines Kontrollbeauftragten des Agent. Jede effektive Teilschuldverschreibung, jeder Rückzahlungsschein und jeder
Zinsschein, sofern anwendbar, ist mit dem Prägestempel
der Emittentin versehen.
Interest bearing definitive Notes (unless otherwise indicated in the applicable Pricing Supplement) have interest
coupons (“Coupons”) and, if indicated in the applicable
Pricing Supplement, talons for further Coupons (“Talons”)
attached on issue. Any reference herein to Coupons or
coupons shall, unless the context otherwise requires, be
deemed to include a reference to Talons or talons. Definitive Notes repayable in instalments have receipts
(“Receipts”) for the payment of the instalments of principal
(other than the final instalment) attached on issue.
Verzinsliche effektive Teilschuldverschreibungen werden
bei ihrer Ausgabe (sofern das betreffende Pricing Supplement nichts anderes vorsieht) mit Zinsscheinen (die „Zinsscheine“) und, wenn das Pricing Supplement dies vorsieht,
mit Talons für weitere Zinsscheine (die „Talons“) ausgestattet. Jede Bezugnahme in diesen Anleihebedingungen
auf Zinsscheine gilt, sofern der Zusammenhang nichts anderes erfordert, auch als Bezugnahme auf Talons. In Raten
rückzahlbare effektive Teilschuldverschreibungen werden
bei ihrer Ausgabe mit Rückzahlungsscheinen (die „Rückzahlungsscheine“) für die Zahlung der Tilgungsraten (mit
Ausnahme der letzten Rate) ausgestattet.
The applicable Pricing Supplement may specify alternative
arrangements for the payment of interest or instalments of
principal in respect of definitive Notes in place of Coupons
or Receipts, respectively.
Das betreffende Pricing Supplement darf alternative Verfahrensweisen für die Zahlung von Zinsen oder Raten auf
das Kapital in bezug auf effektive Teilschuldverschreibungen an Stelle von Zinsscheinen beziehungsweise Rückzahlungsscheinen vorsehen.
This Note may be a Fixed Rate Note, a Floating Rate Note,
a Zero Coupon Note, an Index-Linked Interest Note, an
Indexed Redemption Amount Note, a Credit Linked Note, a
Partly Paid Note, a Dual Currency Note or an Instalment
Note or a combination of any of the foregoing, depending
upon the Interest/Payment Basis shown in the applicable
Pricing Supplement, or such other type of Note as indicated
in the applicable Pricing Supplement. This Note is also
either a Subordinated Note or a Senior Note, as indicated in
the applicable Pricing Supplement.
Diese Teilschuldverschreibung kann eine festverzinsliche
Teilschuldverschreibung, eine variabel verzinsliche Teilschuldverschreibung, eine Nullkupon-Teilschuldverschreibung, eine Teilschuldverschreibung mit indexiertem Zinssatz, eine Teilschuldverschreibung mit indexiertem Rückzahlungsbetrag, eine Teilschuldverschreibung mit KreditKomponenten, eine Teilzahlungs-Teilschuldverschreibung,
eine Doppelwährungs-Teilschuldverschreibung oder eine
in Raten rückzahlbare Teilschuldverschreibung oder eine
Kombination der vorstehenden sein, jeweils entsprechend
den im betreffenden Pricing Supplement dargestellten Zins/Zahlungsmodalitäten, oder eine andere Art von Teilschuldverschreibung wie im Pricing Supplement beschrieben. Diese Teilschuldverschreibung ist ferner – wie im Pricing Supplement festgelegt – entweder eine nachrangige Teilschuldverschreibung oder eine nicht nachrangige Teilschuldverschreibung.
31
In the case of Zero Coupon Notes references to interest
(other than in relation to interest due after the Maturity
Date), Coupons and Couponholders in these Terms and
Conditions are not applicable. Notes in global form are
issued without Coupons and the right to receive interest (if
any) shall also be represented by the global Note.
Im Fall von Nullkupon-Teilschuldverschreibungen sind die
Bestimmungen dieser Anleihebedingungen, die sich auf
Zinsen (ausgenommen die Zinsen, die nach dem Endfälligkeitstermin fällig werden), Zinsscheine und Inhaber
von Zinsscheinen beziehen, nicht anwendbar. Teilschuldverschreibungen in globaler Form werden ohne Zinsscheine begeben und das Recht Zinsen, wenn anwendbar, zu
empfangen wird ebenfalls durch die Global-Teilschuldverschreibung verbrieft.
Title to the Notes, Receipts and Coupons will pass in accordance with the rules of the applicable law. The Issuer, the
Guarantor, the Agent and any Paying Agent may deem and
treat the Noteholder (as defined above) as the absolute
owner thereof (whether or not overdue and notwithstanding any notice of ownership or writing thereon or notice of
any previous loss or theft thereof) for all purposes except in
the case of payments made in respect of any global Note,
where the provisions set out in Condition 6 will apply.
Die Rechte aus den Teilschuldverschreibungen, Rückzahlungsscheinen und Zinsscheinen sind gemäß den Bestimmungen des anwendbaren Rechts übertragbar. Die Emittentin, die Garantin, der Agent und jede Zahlstelle dürfen
für alle Zwecke den Inhaber von Teilschuldverschreibungen
(wie vorstehend definiert) als den uneingeschränkten Eigentümer der Teilschuldverschreibung betrachten (unabhängig davon, ob die Teilschuldverschreibung bereits
fällig war, und unabhängig von einem schriftlichen Eigentumsvermerk oder sonstigen schriftlichen Vermerk darauf
oder Hinweis auf einen früheren Verlust oder Diebstahl), es
sei denn Zahlungen wurden auf eine Global-Teilschuldverschreibung, auf die die Bestimmungen der Nr. 6 Anwendung finden, geleistet.
As used herein, “Relevant Clearing System” means any of
the following as specified in the applicable Pricing Supplement: Euroclear and/or Clearstream, Luxembourg and any
additional or alternative clearing system and Clearstream
Banking AG acting through any of its branches approved by
the Issuer, the Guarantor and the Agent and, in the case of
Notes listed on the Luxembourg Stock Exchange, the
Luxembourg Stock Exchange.
Im Sinne dieser Anleihebedingungen ist „relevantes Abrechnungssystem“ jedes der folgenden Systeme, wie im
betreffenden Pricing Supplement spezifiziert: Euroclear
und/oder Clearstream, Luxembourg und jedes weitere oder
alternative Abrechnungssystem und die Clearstream
Banking AG, handelnd durch eine ihrer Niederlassungen,
das von der Emittentin, der Garantin, sowie dem Agent und,
wenn Teilschuldverschreibungen an der Luxemburger Börse notiert werden, auch von der Luxemburger Börse genehmigt worden ist.
2. Status of the Notes and the Guarantees
2. Status der Teilschuldverschreibungen und der
Garantien
32
(a) In the case of Senior Notes
(a) Im Falle von nicht nachrangigen Teilschuldverschreibungen:
The Senior Notes are direct, unconditional, unsecured
and unsubordinated obligations of the Issuer and rank
pari passu with all other unsecured and unsubordinated
obligations (save for obligations having statutory priority) of the Issuer.
Die nicht nachrangigen Teilschuldverschreibungen sind
direkte, unbedingte, unbesicherte und nicht nachrangige Verbindlichkeiten der Emittentin und stehen im
gleichen Rang mit allen anderen unbesicherten und
nicht nachrangigen Verbindlichkeiten (ausgenommen
gesetzlich bevorrechtigte Verbindlichkeiten) der Emittentin.
(b) In the case of Subordinated Notes
(b) Im Falle von nachrangigen Teilschuldverschreibungen:
(i) The Subordinated Notes will constitute direct,
unconditional, unsecured and subordinated obligations
of the Issuer and will rank without any preference among
themselves and pari passu with any other unsecured
subordinated obligations of the Issuer.
(i) Die nachrangigen Teilschuldverschreibungen sind
direkte, unbedingte, unbesicherte und nachrangige Verbindlichkeiten der Emittentin, sind im Verhältnis
zueinander ohne Vorrang und stehen im gleichen Rang
mit allen anderen unbesicherten, nachrangigen Verbindlichkeiten der Emittentin.
(ii) The claims arising from the Subordinated Notes
with respect to the principal amount (the “Principal
Claims”) are subordinated in the event of insolvency
proceedings over the assets of or liquidation of the
Issuer to the claims of all other creditors of the Issuer
which are not also subordinated and, in any such event,
payment of the principal amount of the Subordinated
Notes, will not be made until all existing claims against
the Issuer, which are not subordinated, have been
satisfied. The right to set-off Principal Claims against
claims of the Issuer shall be excluded. Except for the
Subordinated Guarantee, if any, no contractual security
is or will be provided for the Principal Claims; any such
contractual security that may have been provided in the
past or will be provided in the future by the Issuer or any
third party shall not secure the Principal Claims.
(ii) Die Forderungen aus den nachrangigen Teilschuldverschreibungen hinsichtlich des Nennbetrags (die
„Hauptforderungen“) sind im Falle eines Insolvenzverfahrens gegen die Vermögenswerte der Emittentin oder
der Liquidation der Emittentin den Forderungen aller
anderen Gläubiger der Emittentin, die nicht ebenfalls
nachrangig sind, nachgeordnet; in einem derartigen
Fall erfolgt die Zahlung des Nennbetrags der nachrangigen Teilschuldverschreibungen erst, nachdem alle bestehenden nicht nachrangigen Forderungen an die Emittentin befriedigt worden sind. Das Recht auf Aufrechnung von Hauptforderungen gegen Forderungen der
Emittentin wird ausgeschlossen. Abgesehen von einer
etwaigen nachrangigen Garantie wird derzeit oder in
Zukunft keine vertragliche Sicherheit für die Hauptforderungen gewährt; irgendeine derartige vertragliche
Sicherheit, die von der Emittentin oder einem Dritten
möglicherweise in der Vergangenheit gewährt worden
ist oder in Zukunft gewährt werden wird, besichert
nicht die Hauptforderungen.
(iii) Subsequently the subordination provided for in
paragraph (i) cannot be restricted nor (subject as provided in Condition 5(b)) can the Subordinated Notes be
redeemed prior to their stated maturity. In accordance
with § 10 paragraph (5a) of the Kreditwesengesetz (the
German Banking Act), a pre-payment of the principal
amount of the Subordinated Notes must be refunded to
the Issuer notwithstanding any agreement to the contrary, unless any of the statutorily defined exceptions is
applicable (liquidation of the Issuer or replacement of
the principal amount of the Notes by other capital of at
least equal status within the meaning of the German
Banking Act).
(iii) Der in Absatz (i) geregelte Nachrang kann nicht
nachträglich beschränkt werden; die nachrangigen Teilschuldverschreibungen können (vorbehaltlich der Regelungen in Nr. 5(b)) nicht vor ihrer angegebenen Fälligkeit getilgt werden. Gemäß § 10 Absatz (5a)
Kreditwesengesetz ist eine vorzeitige Rückzahlung des
Nennbetrags der nachrangigen Teilschuldverschreibungen der Emittentin ohne Rücksicht auf entgegenstehende Vereinbarungen zurückzugewähren, sofern nicht
eine der gesetzlich vorgesehenen Ausnahmen zutrifft
(Liquidation der Emittentin oder Ersetzung des Nennbetrags der Teilschuldverschreibungen durch Einzahlung anderen, zumindest gleichwertigen Kapitals im
Sinne des Kreditwesengesetzes).
(c) Guarantee in the case of Senior Notes issued
by WestLB Finance Curaçao N.V. or
(c) Garantie für nicht nachrangige Teilschuldverschreibungen, die von der WestLB Finance
Curaçao N.V. oder der WestLB Finance
Netherlands B.V. begeben werden
The payment of all sums due by the Issuer in respect of
the Senior Notes is unconditionally and irrevocably guaranteed by the Guarantor as provided in the Senior
Guarantee.
Die Zahlung aller von der Emittentin in bezug auf die
Teilschuldverschreibungen geschuldeten Beträge wird
von der Garantin entsprechend der nicht nachrangigen
Garantie unbedingt und unwiderruflich garantiert.
(d) Guarantee in the case of Subordinated Notes
issued by WestLB Finance Curaçao N.V. or
(d) Garantie für nachrangige Teilschuldverschreibungen, die von der WestLB Finance Curaçao
N.V. oder der WestLB Finance Netherlands B.V.
begeben werden
The payment of all sums due by the Issuer in respect of
the Subordinated Notes is unconditionally and irrevocably guaranteed by the Guarantor as provided in the
Subordinated Guarantee.
Die Zahlung aller von der Emittentin in bezug auf die
nachrangigen Teilschuldverschreibungen geschuldeten
Beträge wird von der Garantin entsprechend der nachrangigen Garantie unbedingt und unwiderruflich garantiert.
3. Interest
3. Verzinsung
(a) Interest on Fixed Rate Notes
(a) Verzinsung von festverzinslichen Teilschuldverschreibungen
Each Fixed Rate Note bears interest on its nominal
amount (or, if it is a Partly Paid Note, the amount paid
up) from (and including) the Interest Commencement
Date specified in the applicable Pricing Supplement at
the rate(s) per annum equal to the Fixed Rate(s) of
Interest so specified to (but excluding) the Maturity
Date payable in arrear on the Fixed Interest Date(s) in
each year and on the Maturity Date so specified if that
does not fall on a Fixed Interest Date. The first payment
of interest will be made on the Fixed Interest Date next
following the Interest Commencement Date and, if so
specified in the applicable Pricing Supplement, will
amount to the Initial Broken Amount so specified. If the
Maturity Date is not a Fixed Interest Date, interest from
(and including) the preceding Fixed Interest Date (or
the Interest Commencement Date, as the case may be)
to (but excluding) the Maturity Date will amount to the
Final Broken Amount specified in the applicable Pricing
Supplement.
Jede festverzinsliche Teilschuldverschreibung ist auf der
Grundlage ihres Nennbetrags (oder, wenn es sich um
eine Teilzahlungs-Teilschuldverschreibung handelt, auf
der Grundlage des eingezahlten Betrages) zu verzinsen,
und zwar ab dem im betreffenden Pricing Supplement
genannten ersten Zinslauftag (einschließlich) mit einem Jahreszinssatz entsprechend dem Festzinssatz für
eine Laufzeit bis zu, aber ausschließlich, dem Endfälligkeitstermin; die Zinsen sind nachträglich an dem
(den) Festzinstermin(en) eines jeden Jahres und am
Endfälligkeitstermin zahlbar, wenn dieser nicht auf einen Festzinstermin fällt. Die erste Zinszahlung erfolgt
an dem dem ersten Zinslauftag folgenden Festzinstermin und, falls so im betreffenden Pricing Supplement
spezifiziert, in Höhe des so bestimmten anfänglichen
unregelmäßigen Kuponbetrages. Wenn der Endfälligkeitstermin nicht mit einem Festzinstermin zusammenfällt, erfolgt die letzte Zinszahlung am Endfälligkeitstermin in Höhe des im betreffenden Pricing Supplement
bestimmten letzten unregelmäßigen Kuponbetrages für
den Zeitraum vom letzten Festzinstermin (oder vom
ersten Zinslauftag) (einschließlich) bis zum Endfälligkeitstermin (ausschließlich).
If interest is required to be calculated for a period ending
other than on a Fixed Interest Date, such interest shall
be calculated by applying the Fixed Rate to each Specified Denomination, multiplying such sum by the applicable Day Count Fraction, and rounding the resultant
figure to the nearest sub-unit of the relevant Specified
Currency, half of any such sub-unit being rounded upwards or otherwise in accordance with applicable market convention.
Wenn Zinsen für einen nicht an einem Festzinstermin
endenden Zeitraum zu berechnen sind, erfolgt die Berechnung durch Anwendung des Festzinssatzes auf jede
festgelegte Stückelung, Multiplikation dieser Summe
mit dem anwendbaren Zinstagequotienten und Rundung des Ergebnisses auf die nächste Untereinheit der
betreffenden festgelegten Währung, wobei eine halbe
Untereinheit aufgerundet wird oder die Rundung ansonsten gemäß der anwendbaren Marktkonvention erfolgt.
In these Conditions:
In diesen Anleihebedingungen bedeutet
“Day Count Fraction” means, in respect of the calculation of an amount of interest in accordance with this
Condition 3(a):
„Zinstagequotient” in bezug auf die Berechnung eines
Zinsbetrags gemäß dieser Bedingung 3(a):
33
34
(i) if “Actual/Actual (ISMA)” is specified in the applicable Pricing Supplement:
(i) wenn in dem betreffenden Pricing Supplement „Actual/Actual (ISMA)“ festgelegt ist:
(a) in the case of Notes where the number of days in
the relevant period from (and including) the
most recent Fixed Interest Date (or, if none, the
Interest Commencement Date) to (but excluding) the relevant payment date (the “Accrual
Period”) is equal to or shorter than the Determination Period during which the Accrual Period
ends, the number of days in such Accrual Period
divided by the product of (1) the number of days
in such Determination Period and (2) the number of Determination Dates (as specified in the
applicable Pricing Supplement) that would occur in one calendar year; or
(a) im Fall von Teilschuldverschreibungen, bei denen die Anzahl von Tagen in der betreffenden
Periode ab dem letzten Festzinstermin (oder,
wenn es keinen solchen gibt, ab dem ersten
Zinslauftag), (jeweils einschließlich desselben)
bis zum betreffenden Zahlungstag (ausschließlich desselben) (die „Zinslaufperiode“) ebenso
lang wie oder kürzer als die Festsetzungsperiode ist, während der die Zinslaufperiode endet,
die Anzahl von Tagen in der betreffenden Zinslaufperiode geteilt durch das Produkt (1) der
Anzahl der Tage in dieser Festsetzungsperiode
und (2) der Anzahl der in ein Kalenderjahr fallenden Festsetzungstage (wie im betreffenden
Pricing Supplement definiert); oder
(b) in the case of Notes where the Accrual Period is
longer than the Determination Period during
which the Accrual Period ends, the sum of:
(b) im Fall von Teilschuldverschreibungen, bei denen die Zinslaufperiode länger ist als die Festsetzungsperiode, während der die Zinslaufperiode endet, die Summe
(1) the number of days in such Accrual Period
falling in the Determination Period in which
the Accrual Period begins divided by the
product of (x) the number of days in such
Determination Period and (y) the number of
Determination Dates (as specified in the
applicable Pricing Supplement) that would
occur in one calendar year; and
(1) der Anzahl der Tage in der Zinslaufperiode,
die in die Festsetzungsperiode fallen, in welcher die Zinslaufperiode beginnt, geteilt
durch das Produkt (x) der Anzahl der Tage in
dieser Festsetzungsperiode und (y) der Anzahl der in ein Kalenderjahr fallenden Festsetzungstage (wie im betreffenden Pricing
Supplement definiert); und
falling in the next Determination Period divided by the product of (x) the number of
days in such Determination Period and (y)
the number of Determination Dates that
would occur in one calendar year; and
die in die nächste Festsetzungsperiode fallen, geteilt durch das Produkt (x) der Anzahl
der Tage in dieser Festsetzungsperiode und
(y) der Anzahl der in ein Kalenderjahr fallenden Festsetzungstage; und
(ii) if “30/360” is specified in the applicable Pricing
Supplement, the number of days in the period from
and including the most recent Fixed Interest Date
(or, if none, the Interest Commencement Date) to
but excluding the relevant payment date (such number of days being calculated on the basis of 12 30day months) divided by 360;
(ii) wenn in dem betreffenden Pricing Supplement
„30/360“ festgelegt ist, die Anzahl von Tagen in der
Periode ab dem letzten Festzinstermin (oder wenn
es keinen solchen gibt, ab dem ersten Zinslauftag)
(jeweils einschließlich desselben) bis zum betreffenden Zahlungstag (ausschließlich desselben) (wobei die Zahl der Tage auf der Basis von 12 Monaten
zu jeweils 30 Tagen berechnet wird), geteilt durch
360;
“Determination Period” means the period from (and
including) a Determination Date to (but excluding) the
next Determination Date; and
„Festsetzungsperiode“ die Periode ab einem Festsetzungstag (einschließlich desselben) bis zum nächsten
Festsetzungstag (ausschließlich desselben); und
“sub-unit” means with respect to any currency other
than euro, the lowest amount of such currency that
is available as legal tender in the country of such
currency and, with respect to euro, means one cent.
„Untereinheit“ in bezug auf jede andere Währung als
den Euro den niedrigsten Betrag dieser Währung, der
in dem Land der betreffenden Währung als gesetzliches
Zahlungsmittel zur Verfügung steht, und in bezug auf
den Euro, einen Cent.
(b) Interest on Floating Rate Notes
(b) Verzinsung von variabel verzinslichen Teilschuldverschreibungen
(i) Interest Payment Dates
(i) Zinstermine
Each Floating Rate Note bears interest on its nominal
amount (or, if it is a Partly Paid Note, the amount paid
up) from (and including) the Interest Commencement
Date specified in the applicable Pricing Supplement to
(but excluding) the next following Interest Payment Date
at the rate equal to the Rate of Interest payable in arrear
on either:
Jede variabel verzinsliche Teilschuldverschreibung ist
auf der Grundlage ihres Nennbetrags (oder, wenn es
sich um eine Teilzahlungs-Teilschuldverschreibung handelt, auf der Grundlage des eingezahlten Betrages) zu
verzinsen, und zwar ab dem im betreffenden Pricing
Supplement genannten ersten Zinslauftag (einschließlich) mit einem dem Zinssatz entsprechenden Satz für
die Periode bis zu (aber ausschließlich) dem nächstfolgenden Zinstermin, zahlbar nachträglich entweder
(A) the Interest Payment Date(s) in each year; or
(A) am (an den) Zinstermin(en) eines jeden Jahres;
oder
(B) if no express Interest Payment Date(s) is/are
specified in the applicable Pricing Supplement, each
(B) falls im betreffenden Pricing Supplement kein(e)
Zinstermin(e) spezifiziert ist (sind), an jedem Termin
date (each an “Interest Payment Date”) which falls
the number of months or other period specified as
the Specified Period in the applicable Pricing Supplement after the preceding Interest Payment Date
or, in the case of the first Interest Payment Date,
after the Interest Commencement Date.
(jeder ein „Zinstermin“), der nach einer Anzahl von
Monaten oder solcher Periode, die als Festgelegte
Periode im Pricing Supplement festgelegt wurde, dem
vorhergehenden Zinstermin oder, im Falle des ersten
Zinstermines, dem ersten Zinslauftag folgt.
Such interest will be payable in respect of each Interest
Period (which expression shall, as used herein, mean
the period from (and including) an Interest Payment
Date (or the Interest Commencement Date) to (but
excluding) the next (or first) Interest Payment Date).
Dieser Zins ist für jede Zinsperiode zu zahlen, wobei
unter dem Begriff Zinsperiode, so wie er hier gebraucht
wird, der Zeitraum von (und einschließlich) einem Zinstermin (oder ersten Zinslauftag) bis (jedoch ausschließlich) dem nächsten (oder ersten) Zinstermin zu verstehen ist.
If any Interest Payment Date (or other date) which is
specified in the applicable Pricing Supplement to be
subject to adjustment in accordance with a business day
convention would otherwise fall on a day which is not a
Business Day, then, if the business day convention specified is:
Sofern ein Zinstermin (oder sonstiger Termin), der in
dem betreffenden Pricing Supplement als unter dem
Vorbehalt der Anpassung entsprechend einer Geschäftstagskonvention spezifiziert ist, ansonsten auf einen Tag
fiele, der kein Geschäftstag ist, wird, falls die festgelegte Geschäftstagskonvention die Konvention:
(1) the Floating Rate Convention (in any case where
Specified Periods are specified in accordance with
Condition 3 (b) (i) (B) above), such Interest Payment
Date (or other date) shall be postponed to the next
day which is a Business Day unless it would thereby
fall into the next calendar month, in which event (A)
such Interest Payment Date (or other date) shall be
brought forward to the immediately preceding Business Day and (B) each subsequent Interest Payment
Date (or other date) shall be the last Business Day in
the month which falls the number of months or
other period specified as the Specified Period in the
applicable Pricing Supplement after the preceding
applicable Interest Payment Date (or other date)
occurred; or
(1) „Variabler Zinssatz Konvention“ (oder „Floating
Rate Convention“) ist (in jedem Fall, in dem Festgelegte Perioden gemäß Nr. 3 (b) (i) (B) bestimmt werden), dieser Zinstermin (oder sonstige Termin) auf
den folgenden Tag, der ein Geschäftstag ist, verschoben, es sei denn, er würde dadurch in den
nächsten Kalendermonat fallen; in diesem Falle ist
(A) der Zinstermin (oder sonstige Termin) auf den
unmittelbar vorhergehenden Geschäftstag vorverlegt und (B) jeder folgende Zinstermin (oder sonstige Termin) der letzte Geschäftstag des Monats,
der nach der Anzahl von Monaten oder solcher Periode, die als Festgelegte Periode im betreffenden
Pricing Supplement festgelegt wurde, dem vorhergehenden anwendbaren Zinstermin (oder sonstigen Termin) folgt; oder
(2) the Following Business Day Convention, such
Interest Payment Date (or other date) shall be postponed to the next day which is a Business Day; or
(2) „folgender Geschäftstag“ (oder „Following Business Day Convention“) ist, dieser Zinstermin (oder
sonstige Termin) auf den folgenden Tag, der ein
Geschäftstag ist, verschoben; oder
(3) the Modified Following Business Day Convention, such Interest Payment Date (or other date)
shall be postponed to the next day which is a
Business Day unless it would thereby fall into the
next calendar month, in which event such Interest
Payment Date (or other date) shall be brought
forward to the immediately preceding Business Day;
or
(3) „folgender Geschäftstag (Modifiziert)“ (oder
„Modified Following Business Day Convention“) ist,
dieser Zinstermin (oder sonstige Termin) auf den
folgenden Tag, der ein Geschäftstag ist, verschoben, es sei denn, er würde dadurch in den nächsten
Kalendermonat fallen; in diesem Falle wird der Zinstermin (oder sonstige Termin) auf den unmittelbar
vorhergehenden Geschäftstag vorgezogen; oder
(4) the Preceding Business Day Convention, such
Interest Payment Date (or other date) shall be
brought forward to the immediately preceding Business Day.
(4) „vorausgehender Geschäftstag“ (oder „Preceding Business Day Convention“) ist, dieser Zinstermin (oder sonstige Termin) auf den unmittelbar
vorhergehenden Geschäftstag vorgezogen.
In this Condition, “Business Day” means a day which is
both:
In dieser Bestimmung bedeutet „Geschäftstag“ einen
Tag, der beides ist:
(A) a day on which commercial banks and foreign
exchange markets settle payments in Düsseldorf
and/or any other place as is specified in the applicable Pricing Supplement (each an “Additional
Business Centre”); and
(A) ein Tag, an dem Geschäftsbanken und Devisenmärkte in Düsseldorf und/oder an einem anderen in
dem betreffenden Pricing Supplement bestimmten
Ort (jeder ein „zusätzliches Finanzzentrum“) Zahlungen abwickeln; und
(B) either (1) in relation to interest payable in a
Specified Currency other than euro, a day on which
commercial banks and foreign exchange markets
settle payments and are open for general business
(including dealing in foreign exchange and foreign
currency deposits) in the principal financial centre
of the country of the relevant Specified Currency
(if other than Düsseldorf and/or any Additional Business Centre and which, if the Specified Currency is
Australian dollars or New Zealand dollars shall be
Sydney and Auckland respectively) or (2) in relation
to any sum payable in euro, a day on which the
(B) entweder (1) in bezug auf Zinszahlungen in
einer anderen festgelegten Währung als Euro ein
Tag, an dem Geschäftsbanken und Devisenmärkte
Zahlungen in dem Hauptfinanzzentrum des Landes
der betreffenden festgelegten Währung (das, falls
dies nicht Düsseldorf und/oder ein zusätzliches
Finanzzentrum ist, im Falle, daß die festgelegte Währung der Australische oder Neuseeländische Dollar
ist, Sydney bzw. Auckland sein soll) abwickeln und
für allgemeine Geschäfte (einschließlich des Handels in Devisen und Fremdwährungseinlagen) geöffnet sind oder (2) in bezug auf irgendeine in Euro
35
Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET) System (the “TARGET System”) is open.
36
zahlbare Summe ein Tag, an dem das Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET) System (das „TARGET
System“) geöffnet ist.
(ii) Rate of Interest
(ii) Zinssatz
The Rate of Interest payable from time to time in respect
of the Floating Rate Notes will be determined in the
manner specified in the applicable Pricing Supplement.
Der Zinssatz, der jeweils auf die variabel verzinslichen
Teilschuldverschreibungen zu zahlen ist, wird nach der
im Pricing Supplement festgelegten Weise bestimmt.
(iii) Screen Rate Determination
(iii) Bildschirmnotierung
(A) Where Screen Rate Determination is specified in the
applicable Pricing Supplement as the manner in which
the Rate of Interest is to be determined, the Rate of
Interest for each Interest Period will, subject as provided below, be either:
(A) Falls das betreffende Pricing Supplement Bildschirmnotierung als die Art, in der der Zinssatz bestimmt wird, spezifiziert, ist der Zinssatz für jede Zinsperiode, vorbehaltlich der nachstehend genannten Bestimmungen, entweder:
(a) the offered quotation (if there is only one quotation on the Relevant Screen Page); or
(a) die Angebotsquotierung (wenn nur eine Angebotsquotierung auf der relevanten Bildschirmseite
angezeigt ist); oder
(b) the arithmetic mean (rounded if necessary to
the fourth decimal place, with 0.00005 being rounded upwards) of the offered quotations,
(b) das arithmetische Mittel (falls erforderlich, aufoder abgerundet auf die vierte Dezimalstelle, wobei
0,00005 aufgerundet wird) der Angebotsquotierungen,
(expressed as a percentage rate per annum), for the
Reference Rate which appears or appear, as the case
may be, on the Relevant Screen Page as at 11.00 a.m.
London time (in the case of LIBOR) or 11.00 a.m. Brussels
time (in the case of EURIBOR) on the Interest Determination Date in question plus or minus (as specified in
the applicable Pricing Supplement) the Margin (if any),
all as determined by the Agent. If five or more such
offered quotations are available on the Relevant Screen
Page, the highest (or, if there is more than one such
highest quotation, one only of such quotations) and the
lowest (or, if there is more than one such lowest quotation, one only of such quotations) shall be disregarded
by the Agent for the purpose of determining the arithmetic mean (rounded as provided above) of such offered quotations.
(ausgedrückt als Prozentsatz per annum) für den Referenzzinssatz, die auf der betreffenden Bildschirmseite
um 11.00 Uhr Londoner Zeit (im Fall von LIBOR) oder
11.00 Uhr Brüsseler Zeit (im Fall von EURIBOR) an dem
fraglichen Zinsfestsetzungstag angezeigt wird bzw. werden, plus oder minus (wie im Pricing Supplement spezifiziert) der Marge (falls eine solche vorgesehen ist),
wobei sämtliche Sätze vom Agent festgesetzt werden.
Wenn auf der relevanten Bildschirmseite fünf oder mehr
Angebotsquotierungen zur Verfügung stehen, ist der
höchste (oder, wenn mehr als ein höchster Satz erscheint, einer dieser Sätze) und der niedrigste Satz
(oder, wenn mehr als ein niedrigster Satz erscheint,
einer dieser Sätze) vom Agent für die Bestimmung des
arithmetischen Mittels (aufoder abgerundet, wie oben
angegeben) dieser Angebotsquotierungen außer acht
zu lassen.
(B) If the Relevant Screen Page is not available or if, in
the case of (a) above, no such quotation appears or, in
the case of (b) above, fewer than three such offered
quotations appear, in each case as at the time specified
in the preceding paragraph the Agent shall request the
Reference Banks (as defined below) to provide the Agent
with its offered quotation (expressed as a percentage
rate per annum) for deposits in the Specified Currency
for the relevant Specified Period to leading banks in the
London inter-bank market at approximately 11.00 a.m.
London time (if the Reference Rate is LIBOR) or to
leading banks in the Euro-zone interbank market at
approximately 11.00 a.m. Brussels time (if the Reference Rate is EURIBOR) on the Interest Determination
Date in question. If two or more of the Reference Banks
provide the Agent with such offered quotations, the
Rate of Interest for such Interest Period shall be the
arithmetic mean (rounded if necessary to the fourth
decimal place with 0.00005 being rounded upwards) of
such offered quotations plus or minus (as appropriate)
the Margin (if any), all as determined by the Agent.
(B) Für den Fall, daß jeweils zu dem im vorstehenden
Absatz genannten Zeitpunkt die relevante Bildschirmseite nicht verfügbar ist oder wenn, im Fall von (a) oben,
kein Satz angezeigt wird, oder wenn, im Fall von (b)
oben, weniger als drei solcher Angebotsquotierungen
angezeigt werden, wird der Agent die Referenzbanken
(wie nachstehend definiert) auffordern, ihm den Satz
(ausgedrückt als Prozentsatz per annum) mitzuteilen,
zu dem sie erstklassigen Banken im Londoner Interbankenmarkt gegen 11.00 Uhr Londoner Zeit (wenn der
Referenzzinssatz LIBOR ist) oder erstklassigen Banken
im Interbankenmarkt der Eurozone gegen 11.00 Uhr
Brüsseler Zeit (wenn der Referenzzinssatz EURIBOR
ist) am fraglichen Zinsfestsetzungstag Einlagen in der
festgelegten Währung für die betreffende Festgelegte
Periode anbieten. Geben zwei oder mehr Referenzbanken dem Agent solche Sätze an, dann soll der Zinssatz
für diese Zinsperiode das arithmetische Mittel (falls
erforderlich, aufoder abgerundet auf die vierte Dezimalstelle, wobei 0,00005 aufgerundet wird) dieser Angebotsquotierungen plus oder minus (je nachdem) der
Marge (falls eine solche vorgesehen ist) sein, wie jeweils vom Agent festgesetzt.
(C) If on any Interest Determination Date one only or
none of the Reference Banks provides the Agent with
such offered quotations as provided in the preceding
paragraph, the Rate of Interest for the relevant Interest
Period shall be the rate per annum which the Agent
determines as being the arithmetic mean (rounded if
necessary to the fourth decimal place, with 0.00005
(C) Falls an einem Zinsfestsetzungstag nur eine oder
keine der Referenzbanken dem Agent solche Angebotsquotierungen, wie im vorstehenden Absatz beschrieben, mitteilt, dann soll der Zinssatz für die betreffende
Zinsperiode der Satz per annum sein, den der Agent als
das arithmetische Mittel (falls erforderlich, aufoder
abgerundet auf die vierte Dezimalstelle, wobei 0,00005
being rounded upwards) of the rates, as communicated
to (and at the request of) the Agent by the Reference
Banks or any two or more of them, at which such banks
were offered, at approximately 11.00 a.m. London time
(if the Reference Rate is LIBOR) or 11.00 a.m. Brussels
time (if the Reference Rate is EURIBOR) on the relevant
Interest Determination Date, deposits in the Specified
Currency for the relevant Specified Period by leading
banks in the London inter-bank market (if the Reference
Rate is LIBOR) or the Euro-zone inter-bank market (if
the Reference Rate is EURIBOR) plus or minus (as
appropriate) the Margin (if any) or, if fewer than two of
the Reference Banks provide the Agent with such offered
rates, the offered rate for deposits in the Specified Currency for the relevant Specified Period, or the arithmetic
mean (rounded as provided above) of the offered rates
for deposits in the Specified Currency for the relevant
Specified Period, which, on the relevant Interest Determination Date, any one or more banks (which bank or
banks is or are in the opinion of the Issuer and the Agent
suitable for such purpose) informs the Agent it is quoting to leading banks in the London inter-bank market
(if the Reference Rate is LIBOR) or the Euro-zone interbank market (if the Reference Rate is EURIBOR) (or, as
the case may be, the quotations of such bank or banks to
the Agent) plus or minus (as appropriate) the Margin (if
any), provided that, if the Rate of Interest cannot be
determined in accordance with the foregoing provisions of this Condition 3(b)(iii)(C), the Rate of Interest
shall be determined as at the last preceding Interest
Determination Date (though substituting, where a different Margin is to be applied to the relevant Interest
Period from that which applied to the last preceding
Interest Period, the Margin relating to the relevant
Interest Period in place of the Margin relating to that last
preceding Interest Period).
aufgerundet wird) der Sätze feststellt, die ihm (auf seine
Anfrage hin) von den Referenzbanken oder mindestens
zwei der Referenzbanken als die Sätze mitgeteilt werden, zu denen ihnen gegen 11.00 Uhr Londoner Zeit
(wenn der Referenzzinssatz LIBOR ist) oder 11.00 Uhr
ist, am fraglichen Zinsfestsetzungstag Einlagen in der
Periode von erstklassigen Banken im Londoner Interbankenmarkt (wenn der Referenzzinssatz LIBOR ist)
oder im Interbankenmarkt der Eurozone (wenn der
Referenzzinssatz EURIBOR ist), angeboten werden, plus
oder minus (je nachdem) der Marge (falls eine solche
vorgesehen ist). Falls weniger als zwei der
Referenzbanken dem Agent solche Angebotssätze mitteilen, dann soll der Zinssatz für die betreffende Festgelegte Periode der Angebotssatz für Einlagen in der
Periode oder das arithmetische Mittel (gerundet wie
oben beschrieben) der Angebotssätze für Einlagen in
der festgelegten Währung für die betreffende Festgelegte Periode sein, den bzw. die eine oder mehrere
Banken (die nach Ansicht der Emittentin und des Agent
für diesen Zweck geeignet sind) dem Agent am Zinsfestsetzungstag als ihre Angebotsquotierung gegenüber
erstklassigen Banken im Londoner Interbankenmarkt
(wenn der Referenzzinssatz LIBOR ist) oder im Interbankenmarkt der Eurozone (wenn der Referenzzinssatz
EURIBOR ist) (bzw. gegenüber dem Agent) nennen,
plus oder minus (je nachdem) der Marge (falls eine
solche vorgesehen ist). Für den Fall, daß der Zinssatz
nicht wie in dieser Nr. 3 (b) (iii) (C) vorstehend beschrieben ermittelt werden kann, soll der Zinssatz wie am
unmittelbar vorhergehenden Zinsfestsetzungstag bestimmt werden (wobei jedoch – falls für die relevante
Zinsperiode eine andere Marge als für die unmittelbar
vorhergehende Zinsperiode gilt – die Marge für die relevante Zinsperiode an die Stelle der Marge für die
vorhergehende Zinsperiode tritt).
(D) In this Condition 3:
(D) In dieser Nr. 3 bedeutet
“LIBOR” means the London inter-bank offered rate.
„LIBOR“ den Londoner Interbanken-Angebotssatz;
“EURIBOR” means the Euro-zone inter-bank offered
rate.
„EURIBOR“ den Interbanken-Angebotssatz in der
Eurozone;
“Reference Banks” means, in the case of a determination of LIBOR, the principal London office of four major
banks in the London inter-bank market and, in the case
of a determination of EURIBOR, the principal Euro-zone
office of four major banks in the Euro-zone inter-bank
market, in each case selected by the Agent or as specified in the applicable Pricing Supplement.
“Euro-zone” means the region comprised of Member
States of the European Union that adopt the single
currency in accordance with the Treaty establishing the
European Community, as amended by the Treaty on
European Union.
„Referenzbanken“ im Fall einer Festsetzung von LIBOR
die Londoner Hauptgeschäftsstellen von vier führenden
Banken im Londoner Interbankenmarkt und im Fall einer Festsetzung von EURIBOR die Hauptgeschäftsstellen in der Eurozone von vier führenden Banken im
Interbankenmarkt der Eurozone, wie jeweils vom Agent
ausgewählt oder im betreffenden Pricing Supplement
bestimmt. “Eurozone“ ist die Region, die die Mitgliedsstaaten der Europäischen Union umfaßt, welche die
einheitliche Währung gemäß dem Vertrag über die Errichtung der Europäischen Gemeinschaft, abgeändert
durch den Vertrag über die Europäische Union, einführen.
(E) If the Reference Rate from time to time in respect of
Floating Rate Notes is specified in the applicable Pricing
Supplement as being other than LIBOR or EURIBOR,
the Rate of Interest in respect of such Notes will be
determined as provided in the applicable Pricing Supplement.
(E) Wenn der im betreffenden Pricing Supplement angegebene für die variabel verzinslichen Teilschuldverschreibungen jeweils geltende Referenzzinssatz weder
LIBOR noch EURIBOR ist, erfolgt die Festsetzung des
Zinssatzes für diese Teilschuldverschreibungen wie in
dem betreffenden Pricing Supplement angegeben.
(iv) Minimum and/or Maximum Rate of Interest
(iv) Mindest- und/oder Höchst-Zinssatz
If the applicable Pricing Supplement specifies a Minimum Rate of Interest for any Interest Period, then the
Rate of Interest for such Interest Period shall in no event
be less than such Minimum Rate of Interest and/or if it
specifies a Maximum Rate of Interest for any Interest
Period, then the Rate of Interest for such Interest Period
shall in no event be greater than such Maximum Rate of
Interest.
Wenn das betreffende Pricing Supplement für eine Zinsperiode einen Mindest-Zinssatz vorsieht, darf der Zinssatz für diese Zinsperiode in keinem Fall diesen Mindest-Zinssatz unterschreiten, und/oder wenn dort für
eine Zinsperiode ein Höchst-Zinssatz aufgeführt wird,
darf der Zinssatz für diese Zinsperiode in keinem Fall
diesen Höchst-Zinssatz überschreiten.
37
(v) Determination of Rate of Interest and Calculation of Interest Amount
(v) Bestimmung des Zinssatzes und Berechnung
des Zinsbetrags
The Agent will, at or as soon as practicable after each
time at which the Rate of Interest is to be determined,
determine the Rate of Interest and calculate the amount
of interest payable in respect of each Specified Denomination (each an “Interest Amount”) for the relevant
Interest Period. Each Interest Amount shall be calculated by applying the Rate of Interest to the Specified
Denomination, multiplying such sum by the applicable
Day Count Fraction as specified in the applicable Pricing Supplement, and rounding the resultant figure to
the lowest recognised unit of account in the relevant
Specified Currency, with a half of such lowest unit of
account being rounded upwards or otherwise in accordance with applicable market convention.
Der Agent wird zu oder baldmöglichst nach jedem Zeitpunkt, an dem der Zinssatz zu bestimmen ist, den Zinssatz bestimmen und den zahlbaren Zinsbetrag in bezug auf jede festgelegte Stückelung (jeder ein „Zinsbetrag“) für die betreffende Zinsperiode berechnen.
Jeder Zinsbetrag wird ermittelt, indem der für die betreffende Zinsperiode geltende Zinssatz auf die festgelegte Stückelung angewendet wird, diese Summe mit
dem im Pricing Supplement als anwendbar festgelegten Zinstagequotienten multipliziert und der resultierende Betrag auf die kleinste anerkannte Rechnungseinheit der betreffenden festgelegten Währung aufoder
abgerundet wird, wobei die Hälfte dieser kleinsten Rechnungseinheit aufgerundet wird oder die Rundung ansonsten gemäß der anwendbaren Marktkonvention erfolgt.
“Day Count Fraction” means, in respect of the calculation of
an amount of interest for any Interest Period:
„Zinstagequotient“ in bezug auf die Berechnung eines Zinsbetrags für eine Zinsperiode bedeutet
(i) if “Actual/365” or “Actual/Actual (ISDA)” is specified in the applicable Pricing Supplement, the actual
number of days in the Interest Period divided by 365
(or, if any portion of that Interest Period falls in a
leap year, the sum of (a) the actual number of days
in that portion of the Interest Period falling in a leap
year divided by 366 and (b) the actual number of
days in that portion of the Interest Period falling in a
non-leap year divided by 365);
(i) wenn in dem betreffenden Pricing Supplement
„Actual/365“ oder „Actual/Actual (ISDA)“ festgelegt ist, die tatsächliche Zahl der Tage der Zinsperiode dividiert durch 365 (oder, falls ein Teil der Zinsperiode in ein Schaltjahr fällt, die Summe (a) der
tatsächlichen Zahl der Tage in dem Teil der Zinsperiode, der in ein Schaltjahr fällt, geteilt durch 366,
und (b) der tatsächlichen Zahl der Tage in dem Teil
der Zinsperiode, der in ein Jahr, das kein Schaltjahr
ist, fällt, geteilt durch 365);
(ii) if “Actual/365 (Fixed)” is specified in the applicable
Pricing Supplement, the actual number of days in
the Interest Period divided by 365;
„Actual/365 (Fixed)“ festgelegt ist, die tatsächliche
Zahl der Tage der Zinsperiode geteilt durch 365;
(iii) if “Actual/365 (Sterling)” is specified in the applicable Pricing Supplement, the actual number of days
in the Interest Period divided by 365 or, in the case
of an Interest Payment Date falling in a leap year,
366;
(iii) wenn in dem betreffenden Pricing Supplement
„Actual/365 (Sterling)“ festgelegt ist, die tatsächliche Zahl der Tage der Zinsperiode geteilt durch
365 oder – im Falle eines in ein Schaltjahr fallenden
Zinstermins – geteilt durch 366;
(iv) if “Actual/360” is specified in the applicable Pricing
Supplement, the actual number of days in the
Interest Period divided by 360;
(iv) wenn in dem betreffenden Pricing Supplement „Actual/360“ festgelegt ist, die tatsächliche Zahl der
Tage der Zinsperiode geteilt durch 360;
(v) if “30/360”, “360/360” or ”Bond Basis” is specified
in the applicable Pricing Supplement, the number of
days in the Interest Period divided by 360 (the number of days to be calculated on the basis of a year of
360 days with 12 30-day months (unless (a) the last
day of the Interest Period is the 31st day of a month
but the first day of the Interest Period is a day other
than the 30th or 31st day of a month, in which case
the month that includes that last day shall not be
considered to be shortened to a 30-day month, or (b)
the last day of the Interest Period is the last day of
the month of February, in which case the month of
February shall not be considered to be lengthened
to a 30-day month)); and
(v) wenn in dem betreffenden Pricing Supplement „30/
360“, „360/360“ oder „Bond Basis“ festgelegt ist,
die Zahl der Tage der Zinsperiode geteilt durch 360
(dabei ist die Zahl der Tage auf der Basis eines
Jahres mit 360 Tagen, eingeteilt in 12 Monate zu
jeweils 30 Tagen, zu berechnen (es sei denn, daß (a)
der letzte Tag der Zinsperiode der 31. Tag eines
Monats, der erste Tag der Zinsperiode jedoch nicht
der 30. oder 31. Tag eines Monats ist, in welchem
Fall der Monat, der diesen letzten Tag einschließt,
als nicht auf einen Monat zu 30 Tagen verkürzt gilt,
oder (b) der letzte Tag der Zinsperiode der letzte
Tag des Monats Februar ist, in welchem Fall der
Monat Februar als nicht auf einen Monat zu 30
Tagen verlängert gilt)); und
(vi) if “30E/360” or “Eurobond Basis” is specified in the
applicable Pricing Supplement, the number of days
in the Interest Period divided by 360 (the number of
days to be calculated on the basis of a year of 360
days with 12 30-day months, without regard to the
date of the first day or last day of the Interest Period
unless, in the case of an Interest Period ending on
the Maturity Date, the Maturity Date is the last day
of the month of February, in which case the month of
February shall not be considered to be lengthened
to a 30-day month).
(vi) wenn in dem betreffenden Pricing Supplement „30E/
360“ oder „Eurobond Basis“ festgelegt ist, die Zahl
der Tage der Zinsperiode geteilt durch 360 (dabei
ist die Zahl der Tage auf der Basis eines Jahres mit
360 Tagen, eingeteilt in 12 Monate zu jeweils 30
Tagen, ohne Rücksicht auf das Datum des ersten
Tags oder des letzten Tags der Zinsperiode zu berechnen, es sei denn, daß im Falle einer am Endfälligkeitstermin endenden Zinsperiode der Endfälligkeitstermin der letzte Tag des Monats Februar ist, in
welchem Fall der Monat Februar als nicht auf einen
Monat zu 30 Tagen verlängert gilt).
(vi) Notification of Rate of Interest and Interest
Amount
(vi) Mitteilung des Zinssatzes und des Zinsbetrags
The Agent will cause the Rate of Interest and each
Interest Amount for each Interest Period and the relevant
Der Agent wird veranlassen, daß der für die jeweils
folgende Zinsperiode festgelegte Zinssatz, der Zinsbe-
38
Interest Payment Date to be notified to the Issuer, the
Guarantor and any stock exchange on which the relevant Floating Rate Notes are for the time being listed on
the first Business Day (as defined in Condition 3 (b)) of
the respective Interest Period and notice thereof to be
published in accordance with Condition 16 as soon as
possible after their determination but in no event later
than the fourth Düsseldorf Business Day (as defined in
Condition 3(b)) thereafter. Each Interest Amount and
Interest Payment Date so notified may subsequently be
amended by the Agent (or appropriate alternative arrangements made by way of adjustment) in the event of an
extension or shortening of the Interest Period without
any publication being necessary with respect thereto.
Any such amendment will be promptly notified to each
stock exchange on which the relevant Floating Rate
Notes are for the time being listed.
trag sowie der betreffende Zinstermin der Emittentin,
der Garantin und jeder Börse, an der die betreffenden
variabel verzinslichen Teilschuldverschreibungen zu
diesem Zeitpunkt notiert werden, am ersten Geschäftstag (wie in Nr. 3 (b) definiert) der betreffenden Zinsperiode mitgeteilt werden und in Übereinstimmung mit
Nr. 16 baldmöglichst, aber keinesfalls später als am
vierten Geschäftstag in Düsseldorf (wie in Nr. 3(b) definiert) nach der Festlegung, veröffentlicht werden. Im
Fall einer Verlängerung oder Verkürzung der Zinsperiode können vom Agent der mitgeteilte Zinsbetrag und
der Zinstermin nachträglich angepaßt (oder im Wege
der Anpassung geeignete andere Maßnahmen getroffen werden), ohne daß diesbezüglich eine Veröffentlichung nötig ist. Jede solche Anpassung wird umgehend
allen Börsen mitgeteilt, an denen die variabel verzinslichen Teilschuldverschreibungen zum Zeitpunkt der Anpassung notiert werden.
(c) Index-Linked Notes and Dual Currency Notes
(c) Indexierte Teilschuldverschreibungen und
Doppelwährungs-Teilschuldverschreibungen
In the case of Index-Linked Notes or Dual Currency
Notes, if the rate or amount of interest falls to be determined by reference to an index and/or a formula or, as
the case may be, an exchange rate, the rate or amount of
interest payable shall be determined in the manner
specified in the applicable Pricing Supplement. In the
case of Index-Linked Interest Notes or Dual Currency
Notes which are also Floating Rate Notes where the rate
or amount of interest does not fall to be determined as
provided in the immediately preceding sentence, the
provisions of Condition 3(b) shall apply, except where
otherwise specified in the applicable Pricing Supplement.
Im Falle von indexierten Teilschuldverschreibungen
oder Doppelwährungs-Teilschuldverschreibungen, bei
denen der Zinssatz oder der Zinsbetrag in bezug auf
einen Index und/oder eine Formel oder gegebenenfalls
in bezug auf einen Devisenkurs ermittelt werden, wird
der Zinssatz oder der zu zahlende Zinsbetrag gemäß
dem im Pricing Supplement festgelegten Verfahren ermittelt. Sofern es sich bei indexiert-verzinslichen Teilschuldverschreibungen oder Doppelwährungs-Teilschuldverschreibungen zugleich um variabel verzinsliche Teilschuldverschreibungen handelt, bei denen der
Zinssatz oder Zinsbetrag nicht wie im unmittelbar vorhergehenden Satz geregelt ermittelt wird, sollen die
Bestimmungen von Nr. 3(b) angewendet werden, es sei
denn, das betreffende Pricing Supplement sieht etwas
anderes vor.
(d) Credit Linked Notes
(d) Teilschuldverschreibungen mit Kreditkomponente
In the case of Credit Linked Notes, if the amount of
principal or interest falls to be determined by the value
of underlying asset(s), the amount payable shall be
determined in the manner specified in the applicable
Pricing Supplement.
Im Fall von Teilschuldverschreibungen mit Kreditkomponente, bei denen der Kapital- oder Zinsbetrag in bezug auf einen zugrundeliegenden Vermögenswert (bzw.
in bezug auf zugrundeliegende Vermögenswerte) ermittelt wird, wird der zu zahlende Betrag gemäß dem im
Pricing Supplement festgelegten Verfahren ermittelt.
(e) Partly Paid Notes
(e) Teilzahlungs-Teilschuldverschreibungen
In the case of Partly Paid Notes (other than Partly Paid
Notes which are Zero Coupon Notes), interest will accrue
as aforesaid on the paid-up nominal amount of such
Notes and/or otherwise as specified in the applicable
Pricing Supplement.
Im Fall von Teilzahlungs-Teilschuldverschreibungen (außer solchen, die Nullkupon-Teilschuldverschreibungen
darstellen) erfolgt die Verzinsung wie vorstehend genannt auf den für diese Teilschuldverschreibungen eingezahlten Betrag und/oder ansonsten wie im Pricing
Supplement spezifiziert.
(f) Accrual of Interest
(f) Zinslauf
Each Note (or in the case of the redemption of part only
of a Note, that part only of such Note) will cease to bear
interest (if any) from the due date for its redemption
unless, upon due presentation thereof, payment of principal is withheld or refused. In such event, interest will
continue to accrue until whichever is the earlier of:
Die Verzinsung (sofern eine solche vorgesehen ist) jeder
Teilschuldverschreibung (oder – im Fall einer nur teilweise zurückgezahlten Teilschuldverschreibung – für
diesen Teil dieser Teilschuldverschreibung) endet an
dem Tag, an dem diese zur Rückzahlung fällig wird,
außer wenn der Beweis geführt wird, daß die Rückzahlung der Teilschuldverschreibung unzulässig vorenthalten oder verweigert worden ist. Letzterenfalls verlängert sich der Zinslauf bis zu dem früheren der beiden
folgenden Termine:
(1) the date on which all amounts due in respect of
such Note have been paid; and
(1) dem Tag, an dem alle ausstehenden Beträge im
Zusammenhang mit dieser Teilschuldverschreibung
gezahlt worden sind; oder
(2) five days after the date on which the full amount
of the moneys payable in respect of such Note has
been received by the Agent and notice to that effect
has been given to the Noteholders in accordance
with Condition 16.
(2) fünf Tage nach dem Zeitpunkt, an dem der volle
Betrag der auf diese Teilschuldverschreibung zahlbaren Gelder beim Agent eingegangen ist und dies
den Inhabern von Teilschuldverschreibungen gemäß Nr. 16 bekannt gemacht worden ist.
39
4. Redenomination
The applicable Pricing Supplement may provide that
certain Notes may be redenominated in euro. If so, the
wording of the redenomination clause will be set out in
full in the applicable Pricing Supplement.
5. Redemption and Purchase
40
4. Redenominierung
Das betreffende Pricing Supplement kann die Möglichkeit der Umstellung bestimmter Teilschuldverschreibungen auf Euro vorsehen. Dabei wird der volle Wortlaut der Redenominierungsklausel in dem betreffenden
Pricing Supplement aufgeführt.
5. Rückzahlung und Rückkauf
(a) At Maturity
(a) Rückzahlung bei Endfälligkeit
Unless previously redeemed or purchased and cancelled as specified below, each Note will be redeemed by
the Issuer at its Final Redemption Amount specified in,
or determined in the manner specified in, the applicable
Pricing Supplement in the relevant Specified Currency
on the Maturity Date.
Soweit nicht vorher zurückgezahlt oder zurückgekauft
und annulliert gemäß den nachfolgenden Ausführungen, wird jede Teilschuldverschreibung von der Emittentin zu dem im betreffenden Pricing Supplement festgelegten oder auf die darin bestimmte Weise ermittelten Rückzahlungsbetrag bei Endfälligkeit in der betreffenden festgelegten Währung am Endfälligkeitstermin
zurückgezahlt.
(b) Redemption for Tax Reasons
(b) Vorzeitige Rückzahlung aus Steuergründen
Unless otherwise specified in the applicable Pricing
Supplement, the Notes may be redeemed at the option
of the Issuer in whole, but not in part, at any time (in the
case of the Notes other than Floating Rate Notes) or on
any Interest Payment Date (in the case of Floating Rate
Notes) on giving not less than 30 nor more than 60 days’
notice to the Agent and, in accordance with Condition
16, the Noteholders, if the Issuer or the Guarantor has or
will become obliged to pay additional amounts as provided or referred to in Condition 8 with respect to the
Issuer or in the Senior Guarantee or Subordinated Guarantee, as the case may be, with respect to the Guarantor as a result of any change in, or amendment to, the
laws or regulations of the jurisdiction in which the Issuer is incorporated or the Federal Republic of Germany
or any political subdivision or any authority thereof or
therein having power to tax, or any change in the
application or official interpretation of such laws or
regulations which change or amendment becomes effective on or after the Issue Date of the first Tranche of the
Notes, provided that no such notice of redemption shall
be given earlier than 90 days prior to the earliest date on
which the Issuer or the Guarantor would be obliged to
pay such additional amounts were a payment in respect
of the Notes then due.
Sofern in dem entsprechenden Pricing Supplement
nichts anderes vorgesehen ist, können die Teilschuldverschreibungen nach Wahl der Emittentin insgesamt,
aber nicht teilweise, jederzeit (wenn es sich nicht um
variabel verzinsliche Teilschuldverschreibungen handelt) oder zu jedem Zinstermin (im Fall von variabel
verzinslichen Teilschuldverschreibungen) nach Erklärung einer Kündigung gegenüber dem Agent und gemäß Nr. 16 gegenüber den Inhabern von Teilschuldverschreibungen unter Einhaltung einer Frist von mindestens 30 und höchstens 60 Tagen zurückgezahlt werden, wenn die Emittentin oder die Garantin verpflichtet
ist oder sein wird, aufgrund einer Änderung der Gesetze oder Verordnungen des Landes, in dem die Emittentin ihren Sitz hat, oder der Bundesrepublik Deutschland
oder einer ihrer Gebietskörperschaften oder einer ihrer
zur Steuererhebung ermächtigten Behörden oder aufgrund einer Änderung in der Anwendung oder offiziellen Auslegung solcher Gesetze und Verordnungen, die
am oder nach dem Emissionsdatum der ersten Tranche
von Teilschuldverschreibungen in Kraft tritt, zusätzliche
Beträge, wie in Nr. 8 in bezug auf die Emittentin oder in
der etwaigen nicht nachrangigen Garantie oder der etwaigen nachrangigen Garantie in bezug auf die Garantin vorgesehen oder in Bezug genommen, zu zahlen.
Eine solche Erklärung darf jedoch frühestens 90 Tage
vor dem Termin erfolgen, zu dem die Emittentin oder
die Garantin erstmals verpflichtet wäre, solche zusätzlichen Beträge zu zahlen, wenn an diesem Termin eine
Zahlung in bezug auf die Teilschuldverschreibungen
fällig wäre.
Notes redeemed pursuant to this Condition 5(b) will be
redeemed at their Early Redemption Amount referred to
in paragraph (e) below together (if appropriate) with
interest accrued to (but excluding) the date of redemption.
Gemäß dieser Nr. 5(b) zurückgezahlte Teilschuldverschreibungen werden zu dem in Absatz (e) unten vorgesehenen Rückzahlungsbetrag bei vorzeitiger Rückzahlung zusammen mit Stückzinsen, die bis zum Rückzahlungstag (ausschließlich desselben) anfallen, zurückgezahlt.
(c) Redemption at the Option of the Issuer
(c) Rückzahlung nach Wahl der Emittentin
If the Issuer is specified in the applicable Pricing Supplement as having an option to redeem, the Issuer may,
having (unless otherwise specified in the applicable
Pricing Supplement) given:
Wenn in dem betreffenden Pricing Supplement festgelegt ist, daß die Emittentin ein Kündigungsrecht
hat, kann diese (sofern in dem betreffenden Pricing
Supplement nichts anderes vorgesehen ist):
(i) not less than 30 nor more than 60 days’ notice to
the Noteholders in accordance with Condition 16;
and
(i) nach Erklärung einer Kündigung unter Einhaltung einer Frist von mindestens 30 und höchstens
60 Tagen gegenüber den Inhabern von Teilschuldverschreibungen gemäß Nr. 16; und
(ii) not less than 15 days before the giving of the
notice referred to in (i), notice to the Agent,
(ii) nach einer Kündigung durch Erklärung gegenüber dem Agent spätestens 15 Tage vor der in (i)
genannten Kündigung
(both of which notices shall be irrevocable), redeem all
or some only of the Notes then outstanding on the
Optional Redemption Date(s) and at the Optional
(wobei die Erklärung in beiden Fällen unwiderruflich
ist) alle oder einen Teil der dann nicht zurückgezahlten
Teilschuldverschreibungen an dem/den wahlweisen
Redemption Price(s) specified in, or determined in the
manner specified in, the applicable Pricing Supplement
together, if appropriate, with interest accrued to (but
excluding) the Optional Redemption Date(s). Any such
redemption must be of a nominal amount equal to the
Minimum Redemption Amount or a Higher Redemption
Amount, both as indicated in the applicable Pricing
Supplement. In the case of a partial redemption of
Notes, the Notes to be redeemed (“Redeemed Notes”)
will be selected individually by lot, in the case of Redeemed Notes represented by definitive Notes, and in accordance with the rules of the Relevant Clearing System, in the case of Redeemed Notes represented by a
global Note held on behalf of the Relevant Clearing
System, not more than 30 days prior to the date fixed for
redemption and a list of the serial numbers of such
Redeemed Notes will be published in accordance with
Condition 16 not less than 15 days prior to the date fixed
for redemption.
Rückzahlungstermin(en) und zu dem/den wahlweisen
Rückzahlungsbetrag bzw. -beträgen, die in dem Pricing
Supplement angegeben sind oder in der dort angegebenen Form festgesetzt werden, falls erforderlich,
zusammen mit den bis zu dem/den wahlweisen
Rückzahlungstermin(en) (jedoch nicht einschließlich
dieses Termins bzw. dieser Termine) angefallenen
Stückzinsen zurückzahlen. Eine solche Rückzahlung
muß in Höhe eines Nennbetrages erfolgen, der dem
Mindest-Rückzahlungsbetrag oder einem höheren Rückzahlungsbetrag gemäß der Festlegung in dem Pricing
Supplement entspricht. Bei einer teilweisen Rückzahlung von Teilschuldverschreibungen werden die
zurückzuzahlenden Teilschuldverschreibungen („zurückgezahlte Teilschuldverschreibungen“) frühestens
30 Tage vor dem für die Rückzahlung vorgesehenen
Termin ausgelost; dabei werden durch effektive Stücke
verbriefteTeilschuldverschreibungen einzeln ausgelost
und Teilschuldverschreibungen, die durch eine zugunsten des relevanten Abrechnungssystems gehaltene
Globalurkunde verbrieft sind, entsprechend den Regeln
des relevanten Abrechnungssystems ausgelost. Spätestens 15 Tage vor dem für die Rückzahlung bestimmten
Termin ist eine Liste dieser zurückgezahlten Teilschuldverschreibungen gemäß Nr. 16 zu veröffentlichen.
(d) Redemption of Senior Notes only at the Option
of the Noteholders
(d) Rückzahlung nicht nachrangiger Teilschuldverschreibungen nur nach Wahl der Inhaber von Teilschuldverschreibungen
If the Noteholders are specified in the applicable Pricing
Supplement as having an option to require the Issuer to
redeem, upon the holder of any Senior Note giving to
the Issuer in accordance with Condition 16 not less than
30 nor more than 60 days’ notice or such other period of
notice as is specified in the applicable Pricing Supplement (which notice shall be irrevocable) the Issuer will,
upon the expiry of such notice, redeem, subject to, and
in accordance with, the terms specified in the applicable
Pricing Supplement, in whole (but not in part), such
Senior Note on the Optional Redemption Date and at the
Optional Redemption Price specified in, or determined
in the manner specified in, the applicable Pricing Supplement together, if appropriate, with interest accrued
to (but excluding) the Optional Redemption Date.
Wenn im betreffenden Pricing Supplement festgelegt
ist, daß die Inhaber von Teilschuldverschreibungen das
Recht haben, durch Erklärung einer Kündigung (die
unwiderruflich ist) gegenüber der Emittentin gemäß
Nr. 16 mit einer Frist von mindestens 30 und höchstens
60 Tagen oder mit einer anderen im Pricing Supplement
festgelegten Frist die Rückzahlung zu verlangen, wird
die Emittentin bei Ablauf dieser Frist vorbehaltlich und
entsprechend der im betreffenden Pricing Supplement
festgelegten Bedingungen die betreffende nicht nachrangige Teilschuldverschreibung insgesamt (jedoch
nicht teilweise) am wahlweisen Rückzahlungstermin
zum wahlweisen Rückzahlungsbetrag, der in dem Pricing Supplement spezifiziert ist oder in der dort angegebenen Form festgesetzt wird, falls erforderlich, zusammen mit den bis zum wahlweisen Rückzahlungstermin (jedoch ausschließlich desselben) angefallenen
Stückzinsen zurückzahlen.
If this Senior Note is in definitive form, to exercise the
right to require redemption of this Senior Note its holder
must deliver such Senior Note including unmatured
Coupons and Receipts, if any, at the specified office of
any Paying Agent at any time during normal business
hours of such Paying Agent falling within the notice
period, accompanied by a duly signed and completed
notice of exercise in the form (for the time being current) obtainable from any specified office of the Agent (a
“Put Notice”) and in which the holder must specify a
bank account (or, if payment is by cheque, an address)
to which payment is to be made under this Condition.
Falls diese nicht nachrangige Teilschuldverschreibung
als effektives Stück vorliegt, muß der Inhaber, um das
Recht auf Rückzahlung auszuüben, diese nicht nachrangige Teilschuldverschreibung einschließlich etwaiger nicht verfallener Zinsscheine und Rückzahlungsscheine bei der festgelegten Geschäftsstelle einer Zahlstelle an einem Tag innerhalb der Kündigungsfrist während der üblichen Geschäftszeiten dieser Zahlstelle einreichen, unter Beifügung einer rechtswirksam unterzeichneten und ausgefüllten Erklärung über die Ausübung des Rechts auf vorzeitige Rückzahlung („Ausübungserklärung“), die in der jeweils gültigen Form bei
jeder festgelegten Geschäftsstelle des Agent erhältlich
ist und in der der Inhaber ein Bankkonto (oder eine
Adresse, falls Zahlung per Scheck erfolgt) nennen muß,
auf das (bzw. an die) die Zahlung gemäß dieser Bestimmung geleistet werden muß.
If, prior to such due date for its redemption, such Note
becomes immediately due and payable or if upon due
presentation payment of such redemption moneys is
improperly withheld or refused, the Paying Agent concerned shall post such Note (together with any such
Receipts and Coupons) by uninsured post to, and at the
risk of, the relevant Noteholder unless the Noteholder
has otherwise requested and paid the costs of such
insurance to the relevant Paying Agent at the time of
depositing the Notes at such address as may have been
given by the Noteholder in the Put Notice.
Falls vor einem solchen Fälligkeitstag für ihre Rückzahlung eine Teilschuldverschreibung sofort fällig und zahlbar wird oder falls bei wirksamer Vorlage die Zahlung
solcher Rückzahlungsbeträge unzulässig zurückgehalten oder verweigert wird, wird die betreffende Zahlstelle diese Teilschuldverschreibung (zusammen mit
allen Rückzahlungsscheinen und Zinsscheinen) mittels
unversicherter Post an den betreffenden Inhaber der
Teilschuldverschreibung und auf dessen Gefahr an die
Anschrift senden, die der Inhaber der Teilschuldverschreibung in der Ausübungserklärung angegeben hat,
es sei denn der Inhaber der Teilschuldverschreibung
41
hat eine andere Regelung gefordert und die Kosten
einer Versicherung an die betreffende Zahlstelle zu dem
Zeitpunkt gezahlt, an dem die Teilschuldverschreibungen hinterlegt werden.
42
(e) Early Redemption Amounts
(e) Rückzahlungsbeträge bei vorzeitiger
Rückzahlung
For the purpose of paragraph (b) above and Condition 11, the Notes will be redeemed at the Early Redemption Amount calculated as follows:
Für Zwecke des vorstehenden Absatzes (b) und der
Nr. 11 werden die Teilschuldverschreibungen zu dem
wie folgt berechneten Rückzahlungsbetrag bei vorzeitiger Rückzahlung zurückgezahlt:
(i) in the case of Notes with a Final Redemption
Amount equal to the Issue Price, at the Final
Redemption Amount thereof; or
(i) im Fall von Teilschuldverschreibungen, deren Rückzahlungsbetrag bei Endfälligkeit dem Emissionspreis
entspricht, zu dem Rückzahlungsbetrag bei Endfälligkeit; oder
(ii) in the case of Notes (other than Zero Coupon
Notes) with a Final Redemption Amount which is or
may be less or greater than the Issue Price or which
is payable in a Specified Currency other than that in
which the Notes are denominated, at the amount
specified in, or determined in the manner specified
in, the applicable Pricing Supplement or, if no such
amount or manner is so specified in the Pricing
Supplement, at their nominal amount; or
(ii) im Fall von Teilschuldverschreibungen (außer Nullkupon-Teilschuldverschreibungen), deren Rückzahlungsbetrag bei Endfälligkeit höher oder niedriger ist
oder sein kann als der Emissionspreis oder welcher in
einer anderen festgelegten Währung als derjenigen, auf
die die Teilschuldverschreibungen lauten, zahlbar ist,
zu dem Betrag, der in dem Pricing Supplement festgelegt ist oder in der dort festgelegten Form festgesetzt
wird, oder, falls in dem Pricing Supplement kein solcher
Betrag und keine solche Festsetzung spezifiziert ist, zu
ihrem Nennbetrag; oder
(iii) in the case of Zero Coupon Notes, at an amount
(the “Amortised Face Amount”) equal to the sum of:
(iii) im Fall von Nullkupon-Teilschuldverschreibungen
zu einem Betrag (der „Amortisationsbetrag“), der sich
zusammensetzt aus:
(A) the Reference Price specified in the applicable Pricing Supplement; and
(A) dem in dem betreffenden Pricing Supplement
festgelegten Referenzpreis; und
(B) the product of the Amortisation Yield specified in the applicable Pricing Supplement (compounded annually) being applied to the Reference Price from (and including) the Issue Date
to (but excluding) the date fixed for redemption
or (as the case may be) the date upon which
such Note becomes due and repayable; or
(B) dem Produkt der in dem betreffenden Pricing
Supplement festgelegten (jährlich kapitalisierten)
Amortisationsrendite bezogen auf den Referenzpreis
ab (und einschließlich) dem Emissionsdatum bis zu
(aber ausschließlich) dem vorgesehenen Rückzahlungstermin oder (je nachdem) dem Termin, an dem
diese Teilschuldverschreibung fällig und rückzahlbar wird; oder
(iv) in the case of Index-Linked Notes and Credit
Linked Notes (unless otherwise provided in the applicable Pricing Supplement) at an amount that on
the due date for redemption would have the effect of
preserving for the holders of the Notes the economic equivalent of the obligation of the Issuer to
make payments (of interest and/or principal) in respect of the Notes, that would otherwise have fallen
due after the date fixed for early redemption; or
(iv) im Fall von indexierten Teilschuldverschreibungen
und Teilschuldverschreibungen mit Kreditkomponente
(sofern im betreffenden Pricing Supplement nichts
anderes festgesetzt ist) zu einem Betrag, der am Tag der
Rückzahlung bewirken würde, daß den Inhabern von
der
wirtschaftliche
Gegenwert der Verpflichtung der Emittentin, Zahlungen (von Zinsen und/oder Kapital) auf die Teilschuldverschreibungen zu leisten, die ansonsten nach dem für
die vorzeitige Rückzahlung vorgesehenen Termin fällig
geworden wären, erhalten bliebe;
(v) or such other amount as may be specified in the
applicable Pricing Supplement.
(v) oder zu einem anderen Betrag, der im betreffenden
Pricing Supplement festgelegt ist.
Where such calculation is to be made for a period
which is not a whole number of years, it shall be
made (A) in the case of a Zero Coupon Note payable
in a Specified Currency other than euro, on the basis
of a 360-day year consisting of 12 months of 30 days
each or (B) in the case of a Zero Coupon Note
payable in euro, on the basis of the actual number of
days elapsed divided by 365 (or, if any of the days
elapsed falls in a leap year, the sum of (x) the number of those days falling in a leap year divided by 366
and (y) the number of those days falling in a nonleap year divided by 365) or (C) on such other calculation basis as may be specified in the applicable
Pricing Supplement.
Wenn diese Berechnung für einen Zeitraum, der nicht
einer ganzen Anzahl von Kalenderjahren entspricht,
durchzuführen ist, geschieht dies (A) im Fall einer Nullkupon-Teilschuldverschreibung, die in einer anderen
festgelegten Währung als Euro zahlbar ist, auf der
Grundlage eines Jahres mit 360 Tagen, eingeteilt in
12 Monate zu je 30 Tagen, oder (B) im Fall einer in Euro
zahlbaren Nullkupon-Teilschuldverschreibung auf der
Grundlage der tatsächlichen Anzahl der verstrichenen
Tage geteilt durch 365 (oder, falls irgendeiner der verstrichenen Tage in ein Schaltjahr fällt, der Summe (x)
der Anzahl der in ein Schaltjahr fallenden Tage geteilt
durch 366 und (y) der Anzahl der nicht in ein Schaltjahr
fallenden Tage geteilt durch 365) oder (C) auf einer
anderen Berechnungsgrundlage, die im betreffenden
(f) Instalments
(f) Rückzahlung in Raten
Instalment Notes will be redeemed in the Instalment
Amounts and on the Instalment Dates specified in the
applicable Pricing Supplement. In the case of early
redemption, the Early Redemption Amount will be determined pursuant to paragraph (e) above.
In Raten rückzahlbare Teilschuldverschreibungen werden mit den Ratenbeträgen zu den Tilgungsterminen,
die im Pricing Supplement festgelegt sind, zurückgezahlt. Im Fall der vorzeitigen Rückzahlung wird der
Rückzahlungsbetrag bei vorzeitiger Rückzahlung gemäß dem vorstehenden Absatz (e) bestimmt.
(g) Partly Paid Notes
(g) Teilzahlungs-Teilschuldverschreibungen
If the Notes are Partly Paid Notes, they will be redeemed,
whether at maturity, early redemption or otherwise in
accordance with the provisions of this Condition 5 and
Falls es sich bei den Teilschuldverschreibungen um
Teilzahlungs-Teilschuldverschreibungen handelt, werden diese sowohl bei Endfälligkeit als auch bei vorzeitiger Rückzahlung oder Rückzahlung aus anderem Grund
gemäß dieser Nr. 5 und den Bestimmungen des betreffenden Pricing Supplement zurückgezahlt.
(h) Purchases
(h) Ankauf von Teilschuldverschreibungen
The Issuer, the Guarantor and any of its subsidiaries
may at any time purchase Notes (provided that, in the
case of definitive Notes, all unmatured Receipts and
Coupons appertaining thereto are purchased therewith)
at any price in the open market or otherwise. Notes
purchased by or on behalf of the Issuer, the Guarantor
and any of its subsidiaries may, at their option, be held,
re-issued, resold or surrendered to any Paying Agent for
cancellation.
Der Emittentin, der Garantin und jeder ihrer Tochtergesellschaften ist es erlaubt, jederzeit Teilschuldverschreibungen zu jedem Preis im Markt oder auf andere Weise
anzukaufen (im Fall von effektiven Teilschuldverschreibungen hat der Rückkauf mit allen dazugehörigen noch
nicht fälligen Rückzahlungsscheinen und Zinsscheinen
zu erfolgen). Von oder im Namen der Emittentin, der
Garantin und jeder ihrer Tochtergesellschaften angekaufte Teilschuldverschreibungen können nach deren
Wahl gehalten, wieder ausgegeben, wiederverkauft oder
einer Zahlstelle zur Entwertung überlassen werden.
(i) Cancellation
(i) Entwertung
All Notes which are redeemed will forthwith be cancelled
(together with all unmatured Receipts and Coupons
attached thereto or surrendered therewith at the time of
redemption). All Notes so cancelled and the Notes
purchased and cancelled pursuant to paragraph (h)
above (together with all unmatured Receipts and
Coupons cancelled therewith) shall be forwarded to the
Agent and cannot be re-issued or resold and the obligations of the Issuer and the Guarantor in respect of such
Notes, Receipts and Coupons shall be discharged.
Alle zurückgezahlten Teilschuldverschreibungen werden unverzüglich (zusammen mit allen zum Zeitpunkt
der Rückzahlung noch nicht fälligen beigefügten oder
erworbenen Rückzahlungsscheinen und Zinsscheinen)
entwertet. Alle derart entwerteten Teilschuldverschreibungen und die gemäß Absatz (h) zurückgekauften und
entwerteten Teilschuldverschreibungen (zusammen mit
allen gleichzeitig entwerteten noch nicht fälligen Rückzahlungsscheinen und Zinsscheinen) werden an den
Agent geschickt und können nicht wieder ausgegeben
oder wiederverkauft werden, und die Verpflichtungen
der Emittentin und der Garantin in bezug auf diese
Teilschuldverschreibungen, Rückzahlungsscheine und
Zinsscheine erlöschen.
(j) Late Payment on Zero Coupon Notes
(j) Verspätete Zahlung auf NullkuponTeilschuldverschreibungen
If the amount payable in respect of any Zero Coupon
Note upon redemption of such Zero Coupon Note
pursuant to paragraph (a), (b), (c) or (d) above or upon
its becoming due and repayable as provided in Condition 11 (in the case of a Senior Note) is not paid when
due, the amount due and repayable in respect of such
Zero Coupon Note shall be the amount calculated as
provided in paragraph (e)(iii) above as though the
references therein to the date fixed for the redemption
or the date upon which the Zero Coupon Note becomes
due and repayable were replaced by references to the
date which is the earlier of:
Wenn der zu zahlende Betrag für eine Nullkupon-Teilschuldverschreibung, der gemäß Absatz (a), (b), (c) oder
(d) fällig oder gemäß Nr. 11 (im Fall einer nicht nachrangigen Teilschuldverschreibung) fällig und zahlbar wird,
bei Fälligkeit nicht gezahlt wird, dann ist der für diese
Nullkupon-Teilschuldverschreibung fällige und zahlbare
Betrag der entsprechend dem obigen Absatz (e)(iii) berechnete Betrag, mit der Ausnahme, daß die darin enthaltenen Bezüge auf das Datum der Rückzahlung oder das
Datum der Fälligkeit und Zahlbarkeit der Nullkupon-Teilschuldverschreibung durch Bezüge auf das frühere der
folgenden Daten ersetzt wurden:
(i) the date on which all amounts due in respect of
the Zero Coupon Note have been paid;
(i) der Tag, an dem alle fälligen Beträge in bezug auf
die Nullkupon-Teilschuldverschreibung gezahlt worden sind;
(ii) five days after the date on which the full amount
of the moneys payable has been received by the
Agent and notice to that effect has been given to the
Noteholders in accordance with Condition 16; and
(ii) fünf Tage nach dem Termin, an dem der volle
Betrag der zahlbaren Gelder beim Agent eingegangen ist und dies den Inhabern von Teilschuldverschreibungen gemäß Nr. 16 mitgeteilt worden ist;
bzw.
(iii) where such calculation is to be made for a
period which is not a whole number of years, it shall
be made (A) in the case of a Zero Coupon Note
payable in a Specified Currency other than euro, on
the basis of a 360-day year consisting of 12 months
of 30 days each or (B) in the case of a Zero Coupon
(iii) wenn diese Berechnung für einen Zeitraum, der
nicht einer ganzen Anzahl von Kalenderjahren entspricht, durchzuführen, ist, geschieht dies (A) im
Fall einer Nullkupon-Teilschuldverschreibung, die
in einer anderen festgelegten Währung als Euro
zahlbar ist, auf der Grundlage eines Jahres mit 360
43
Note payable in euro, on the basis of the actual
number of days elapsed divided by 365 (or, if any of
the days elapsed falls in a leap year, the sum of (x)
the number of those days falling in a leap year
divided by 366 and (y) the number of those days
falling in a non-leap year divided by 365) or (C) on
such other calculation basis as may be specified in
6. Payments
44
Tagen, eingeteilt in 12 Monate zu je 30 Tagen oder
(B) im Fall einer in Euro zahlbaren Nullkupon-Teilschuldverschreibung auf Basis der tatsächlichen
Zahl der abgelaufenen Tage, dividiert durch 365
(oder, falls irgendeiner der abgelaufenen Tage in
ein Schaltjahr fällt, der Summe (x) der Zahl der in
das Schaltjahr fallenden Tage, geteilt durch 366,
und (y) der Zahl der nicht in das Schaltjahr fallenden Tage, geteilt durch 365) oder (C) auf einer anderen Berechnungsgrundlage, die im betreffenden
6. Zahlungen
(a) Method of Payment
(a) Zahlungsweise
Subject as provided below:
Vorbehaltlich der nachstehenden Regelungen:
(i) payments in a currency other than euro will be
made by transfer to an account in the relevant Specified Currency maintained by the payee with, or by a
cheque in such Specified Currency drawn on, a
bank which shall be an authorised foreign exchange
bank in the principal financial centre of the country
of such Specified Currency (which, if the Specified
Currency is Australian dollars or New Zealand dollars, shall be Sydney and Auckland, respectively);
and
(i) erfolgen Zahlungen in anderer Währung als Euro
durch Überweisung auf ein Konto in der betreffenden festgelegten Währung, das der Zahlungsempfänger bei einer Bank, die eine autorisierte Devisenbank im Hauptfinanzzentrum des Landes der festgelegten Währung ist, (welches wenn es sich bei
der festgelegten Währung um den Australischen
oder Neuseeländischen Dollar handelt, Sydney und
Auckland sein soll) unterhält oder durch einen auf
eine solche Bank gezogenen Scheck in der festgelegten Währung;
(ii) payments in euro will be made by credit or
transfer to a euro account (or any other account to
which euro may be credited or transferred) specified by the payee or, at the option of the payee, by a
euro cheque.
(ii) erfolgen Zahlungen in Euro durch Gutschrift
oder Überweisung auf ein vom Zahlungsempfänger
angegebenes Euro-Konto (oder ein anderes Konto,
dem Euro gutgeschrieben oder auf das Euro überwiesen werden können) oder durch einen auf Euro
lautenden Scheck.
Payments will be subject in all cases to any fiscal, foreign
exchange or other laws and regulations applicable thereto in the place of payment, but without prejudice to
the provisions of Condition 8.
Die Zahlungen unterliegen jeweils allen anwendbaren
Steuer-, Devisen- und sonstigen Gesetzen und Verordnungen des Zahlungsortes, jedoch unbeschadet der Bestimmungen von Nr. 8.
(b) Presentation of Notes, Receipts and Coupons
(b) Vorlage von Teilschuldverschreibungen,
Rückzahlungsscheinen und Zinsscheinen
Payments of principal in respect of definitive Notes will
(subject as provided below) be made in the manner
provided in paragraph (a) above only against surrender
of definitive Notes, and payments of interest in respect
of definitive Notes will (subject as provided below) be
made as aforesaid only against surrender of Coupons, in
each case at the specified office of any Paying Agent
outside the United States.
Zahlungen von Kapital auf effektive Teilschuldverschreibungen erfolgen (vorbehaltlich der nachstehenden Regelungen) in der im vorstehenden Absatz (a) vorgesehenen Weise nur gegen Einreichung von effektiven Teilschuldverschreibungen, und Zinszahlungen auf effektive Teilschuldverschreibungen erfolgen (vorbehaltlich
der nachstehenden Regelungen) wie vorstehend beschrieben nur gegen Einreichung von Zinsscheinen,
jeweils bei der festgelegten Geschäftsstelle einer Zahlstelle außerhalb der USA.
Payments of instalments of principal (if any), other than
the final instalment, will (subject as provided below) be
made in the manner provided in paragraph (a) above
against presentation and surrender of the relevant
Receipt. Payment of the final instalment will be made in
the manner provided in paragraph (a) above against
surrender of the relevant Note. Each Receipt must be
presented for payment of the relevant instalment together with the definitive Note to which it appertains.
Receipts presented without the definitive Note to which
they appertain do not constitute valid obligations of the
Issuer. Upon the date on which any definitive Note
becomes due and repayable, unmatured Receipts (if
any) relating thereto (whether or not attached) shall
become void and no payment shall be made in respect
thereof.
Etwaige Ratenzahlungen von Kapital, mit Ausnahme
der letzten Rate, werden (vorbehaltlich der nachstehenden Regelungen) wie im obigen Absatz (a) vorgesehen gegen Vorlage und Einreichung des entsprechenden Rückzahlungsscheins vorgenommen. Die Zahlung der letzten Rate erfolgt in der im Absatz (a) vorgesehenen Weise gegen Einreichung der betreffenden Teilschuldverschreibung. Jeder Rückzahlungsschein muß
für die Zahlung der betreffenden Rate zusammen mit
der effektiven Teilschuldverschreibung, zu der er gehört, vorgelegt werden. Rückzahlungsscheine, die ohne
die dazu gehörige effektive Teilschuldverschreibung vorgelegt werden, begründen keine gültigen Verpflichtungen der Emittentin. An dem Tag, an dem eine effektive
Teilschuldverschreibung fällig und rückzahlbar wird,
werden etwaige noch nicht fällige Rückzahlungsscheine (ob beigefügt oder nicht) ungültig und keine Zahlung
wird hierauf erfolgen.
Fixed Rate Notes in definitive form (other than Dual
Currency Notes, Index-Linked Interest Notes, Credit
Linked Notes or Long Maturity Notes (as defined below)
should be presented for payment together with all unmatured Coupons appertaining thereto (which expres-
Festverzinsliche Teilschuldverschreibungen, die als effektive Stücke vorliegen, (außer Doppelwährungs-Teilschuldverschreibungen, Teilschuldverschreibungen mit
indexiertem Zinssatz, Teilschuldverschreibungen mit
Kreditkomponente oder Langfristige Teilschuldver-
sion shall for this purpose include Coupons falling to be
issued on exchange of matured Talons), failing which
the amount of any missing unmatured Coupon (or, in
the case of payment not being made in full, the same
proportion of the amount of such missing unmatured
Coupon as the sum so paid bears to the sum due) will be
deducted from the sum due for payment. Each amount
of principal so deducted will be paid in the manner
mentioned above against surrender of the relative
missing Coupon at any time before the expiry of four
years from the date on which such Coupon would otherwise have become due. Upon any Fixed Rate Note becoming due and repayable prior to its Maturity Date, all
unmatured Talons (if any) appertaining thereto will become void and no further Coupons will be issued in
respect thereof.
schreibungen (wie nachstehend definiert)) sind zusammen mit sämtlichen dazu gehörigen noch nicht fälligen
Zinsscheinen (dieser Begriff in dem hier gebrauchten
Sinn schließt gegen fällig gewordene Talons auszugebende Zinsscheine ein) zur Zahlung vorzulegen;
andernfalls wird der Betrag etwa fehlender noch nicht
fälliger Zinsscheine (oder, sofern die Zahlung nicht in
voller Höhe erfolgt, wird der Teil des Betrags solcher
fehlender nicht fälliger Zinsscheine, der dem Verhältnis
von gezahlter zu fälliger Summe entspricht) von der
zahlbaren Summe abgezogen. Jeder so abgezogene Kapitalbetrag wird auf die vorstehend genannte Weise
gegen Einreichung des betreffenden fehlenden Zinsscheins jederzeit vor Ablauf von vier Jahren nach dem
Tag, an dem der Zinsschein ansonsten fällig geworden
wäre, gezahlt. Wenn eine festverzinsliche Teilschuldverschreibung vor ihrem Endfälligkeitstermin fällig und
zahlbar wird, werden alle etwa dazu gehörigen noch
nicht fälligen Talons ungültig, und für sie werden keine
weiteren Zinsscheine ausgegeben.
Upon the date on which any Floating Rate Note, Dual
Currency Note, Index-Linked Interest Note, Credit
Linked Notes or Long Maturity Note in definitive form
becomes due and repayable, unmatured Coupons and
Talons (if any) relating thereto (whether or not attached)
shall become void and no payment or, as the case may
be, exchange for further Coupons shall be made in
respect thereof. A “Long Maturity Note” is a Fixed Rate
Note (other than a Fixed Rate Note which on issue had
a Talon attached) whose nominal amount on issue is less
than the aggregate interest payable thereon provided
that such Note shall cease to be a Long Maturity Note on
the Fixed Interest Date on which the aggregate amount
of interest remaining to be paid after that date is less
than the nominal amount of such Note. Where any
Floating Rate Note, Dual Currency Note, Index-Linked
Interest Note or Credit Linked Note is presented for
redemption without all unmatured Coupons appertaining thereto, payment of all amounts due in relation to
such Note shall be made only against the provision of
such indemnity as the relevant Issuer and the Guarantor
may decide.
An dem Tag, an dem eine variabel verzinsliche Teilschuldverschreibung, Doppelwährungs-Teilschuldverschreibung, Teilschuldverschreibung mit indexiertem
Zinssatz, Teilschuldverschreibung mit Kreditkomponente oder Langfristige Teilschuldverschreibung in effektiver Form fällig und rückzahlbar wird, werden dazu gehörige nicht fällige Zinsscheine und etwaige Talons (ob
beigefügt oder nicht) ungültig, und auf sie soll keine
Zahlung erfolgen bzw. sie sollen nicht gegen weitere
Zinsscheine ausgetauscht werden. Eine „Langfrist-Teilschuldverschreibung“ ist eine festverzinsliche Teilschuldverschreibung (mit Ausnahme einer festverzinslichen Teilschuldverschreibung, der bei Emission ein
Rückzahlungsschein beigefügt war), deren Nennbetrag
bei Emission niedriger ist als der insgesamt darauf
zahlbare Zinsbetrag; jedoch ist eine solche Teilschuldverschreibung ab dem Festzinstermin, an dem der
danach noch zahlbare Zinsbetrag niedriger wird als der
Nominalbetrag der betreffenden Teilschuldverschreibung, keine Langfrist-Teilschuldverschreibung mehr.
Wenn eine variabel verzinsliche Teilschuldverschreibung, Doppelwährungs-Teilschuldverschreibung oder Teilschuldverschreibung mit indexiertem
Zinssatz oder Teilschuldverschreibung mit Kreditkomponente ohne alle dazu gehörigen nicht fälligen Zinsscheine zur Rückzahlung vorgelegt wird, erfolgt die
Zahlung aller in bezug auf diese Teilschuldverschreibung fälligen Beträge nur gegen eine solche Freistellung, wie die betreffende Emittentin und die Garantin
sie beschließen.
If the due date for redemption of any definitive Note is
not a Fixed Interest Date or an Interest Payment Date,
interest (if any) accrued in respect of such Note from
(and including) the preceding Fixed Interest Date or
Interest Payment Date or, as the case may be, the Interest
Commencement Date shall be payable only against surrender of the relevant definitive Note.
Falls der Fälligkeitstag für die Rückzahlung einer effektiven Teilschuldverschreibung kein Festzinstermin oder
Zinstermin ist, sind etwaige in bezug auf diese Teilschuldverschreibung angefallene Zinsen ab (und einschließlich) dem vorangegangenen Festzinstermin oder
Zinstermin bzw. dem ersten Zinslauftag nur gegen Einreichung der betreffenden effektiven Teilschuldverschreibung zahlbar.
Payments of principal and interest (if any) in respect of
Notes represented by any global Note will (subject as
provided below) be made in the manner specified above
in relation to definitive Notes and otherwise by presentation or surrender, as the case may be, of, and endorsement on, such global Note and by payment to the Relevant Clearing System for credit to the accounts of the
Noteholders or participants through which any Noteholders hold their interest with the Relevant Clearing
System.
Die Zahlungen von Kapital und etwaigen Zinsen auf
Teilschuldverschreibungen, die durch eine Global-Teilschuldverschreibung verbrieft sind, erfolgen (vorbehaltlich der nachstehenden Regelungen) wie vorstehend in
bezug auf effektive Teilschuldverschreibungen festgelegt und ansonsten gegen Vorlage bzw. Einreichung der
sowie Indossament auf dieser Global-Teilschuldverschreibung und durch Zahlung an das relevante Abrechnungssystem zur Gutschrift auf den Konten der
Inhaber von Teilschuldverschreibungen oder der Teilnehmer, über die die Inhaber von Teilschuldverschreibungen ihre Anrechte bei dem relevanten Abrechnungssystem halten.
The holder of a global Note shall be the only person
entitled to receive payments in respect of Notes
represented by such global Note and the Issuer or, as
the case may be, the Guarantor will be discharged by
payment to, or to the order of, the holder of such global
Note in respect of each amount so paid. Each Noteholder (as defined above), to the extent that he is a
Der Inhaber einer Global-Teilschuldverschreibung ist
die einzige Person, die berechtigt ist, Zahlungen in
bezug auf die durch diese Global-Teilschuldverschreibung verbrieften Teilschuldverschreibungen zu empfangen, und die Emittentin oder die etwaige Garantin
wird durch Zahlung an den Inhaber oder auf Weisung
des Inhabers dieser Global-Teilschuldverschreibung in
45
participant in the Relevant Clearing System, must look
solely to the Relevant Clearing System or, if he holds
through a participant, must look solely to such participant for his share of each payment so made by the
Issuer or, as the case may be, the Guarantor to, or to the
order of, the holder of such global Note. No person
other than the holder of such global Note shall have any
claim against the Issuer or, as the case may be, the
Guarantor in respect of any payments due on that global
Note.
bezug auf jeden so gezahlten Betrag befreit. Jeder Inhaber von Teilschuldverschreibungen (wie oben definiert)
muß sich, soweit er Teilnehmer des relevanten
Abrechnungssystems ist, einzig an das relevante
Abrechnungssystem oder, wenn er seine Anrechte über
einen Teilnehmer hält, einzig an diesen Teilnehmer wegen seines Anteils an einer von der Emittentin oder der
etwaigen Garantin an den Inhaber einer solchen GlobalTeilschuldverschreibung erfolgten oder auf dessen Weisung erfolgten Zahlung halten. Allein der Inhaber der
Global-Teilschuldverschreibung hat in bezug auf Zahlungen, die unter einer Global-Teilschuldverschreibung
fällig sind, einen Anspruch gegen die Emittentin oder
die etwaige Garantin.
Notwithstanding the foregoing, U.S. dollar payments of
interest in respect of the Notes will be made at the
specified office of a Paying Agent in the United States
(which expression, as used herein, means the United
States of America (including the States and the District
of Columbia, its territories, its possessions and other
areas subject to its jurisdiction)) if:
Ungeachtet des Vorstehenden werden US-Dollar-Zinszahlungen auf die Teilschuldverschreibungen bei einer
festgelegten Geschäftsstelle einer Zahlstelle in den Vereinigten Staaten (dieser Begriff in dem hier gebrauchten Sinn bezeichnet die Vereinigten Staaten von Amerika (einschließlich deren Bundesstaaten und des District
of Columbia, ihrer Territorien und Besitzungen und
anderer ihrer Jurisdiktion unterliegenden Gebiete)) vorgenommen, wenn:
(i) the Issuer and the Guarantor have appointed
Paying Agents with specified offices outside the
United States with the reasonable expectation that
such Paying Agents would be able to make payment
in U.S. dollars at such specified offices outside the
United States of the full amount of interest on the
Notes in the manner provided above when due;
(i) die Emittentin und die Garantin Zahlstellen mit
festgelegten Geschäftsstellen außerhalb der Vereinigten Staaten in der begründeten Erwartung
ernannt haben, daß diese Zahlstellen in der Lage
sein würden, Zahlungen in US-Dollar in Höhe des
vollen Zinsbetrags auf die Teilschuldverschreibungen bei Fälligkeit in der vorstehend genannten Weise in diesen festgelegten Geschäftsstellen außerhalb
der Vereinigten Staaten vorzunehmen;
(ii) payment of the full amount of such interest at all
such specified offices outside the United States is
illegal or effectively precluded by exchange controls
or other similar restrictions on the full payment or
receipt of interest in U.S. dollars; and
(ii) Zahlungen in Höhe des vollen Zinsbetrags in
allen diesen festgelegten Geschäftsstellen außerhalb der Vereinigten Staaten nicht rechtmäßig oder
durch Devisenkontrollen oder ähnliche Beschränkungen der Zahlung oder des Empfangs des vollen
Zinsbetrages in US-Dollar tatsächlich nicht möglich
sind; und
(iii) such payment is then permitted under United
States law without involving, in the opinion of the
Issuer and the Guarantor, adverse tax consequences
to the Issuer or the Guarantor.
(iii) eine solche Zahlung gemäß dem Recht der Vereinigten Staaten erlaubt ist und nach Ansicht der
Emittentin und der Garantin keine steuerlichen
Nachteile für die Emittentin oder die Garantin mit
sich bringt.
(c) Payment Business Day
(c) Geschäftstag für Zahlungszwecke
If the date for payment of any amount in respect of any
Note, Receipt or Coupon is not a Payment Business Day,
the holder thereof shall not be entitled to payment until
the next following Payment Business Day in the relevant
place and shall not be entitled to further interest or other
payment in respect of such delay. For these purposes,
unless otherwise specified in the applicable Pricing
Supplement, “Payment Business Day” means any day
which is:
Falls ein Zahltag für irgendeinen Betrag in bezug auf
eine Teilschuldverschreibung, einen Rückzahlungsschein oder einen Zinsschein kein Geschäftstag für Zahlungszwecke ist, können die Inhaber von Teilschuldverschreibungen, Rückzahlungsscheinen oder Zinsscheinen ihren Auszahlungsanspruch erst am folgenden Geschäftstag für Zahlungszwecke an dem relevanten Ort
geltend machen und haben keinen Anspruch auf weitere Zinsen oder eine andere Entschädigung wegen dieser Verzögerung. Sofern das betreffende Pricing Supplement nichts anderes vorsieht, bedeutet „Geschäftstag für Zahlungszwecke“ in diesen Anleihebedingungen einen Tag, der:
(i) a day on which commercial banks and foreign
exchange markets settle payments and are open for
general business (including dealing in foreign exchange and foreign currency deposits) in:
(i) ein Tag ist, an dem Geschäftsbanken und Devisenmärkte
(A) the relevant place of presentation;
(A) am relevanten Ort der Einreichung
(B) Düsseldorf;
(B) in Düsseldorf
(C) any Additional Business Centre specified in the
applicable Pricing Supplement; and
(C) in einem zusätzlichen Finanzzentrum, wie im
betreffenden Pricing Supplement spezifiziert
Zahlungen abwickeln und für allgemeine Geschäfte
(einschließlich des Handels in Devisen und Fremdwährungseinlagen)geöffnet sind; und
46
(ii) either (1) in relation to any sum payable in a
Specified Currency other than euro, a day on which
commercial banks and foreign exchange markets
settle payments and are open for general business
(including dealing in foreign exchange and foreign
currency deposits) in the principal financial centre
of the country of the relevant Specified Currency (if
other than the place of presentation, London and
any Additional Financial Centre and which if the
Specified Currency is Australian dollars or New Zealand dollars shall be Sydney or Auckland, respectively) or (2) in relation to any sum payable in euro,
a day on which the TARGET System is open.
(ii) entweder (1) in bezug auf eine Summe, die in
einer anderen festgelegten Währung als Euro zahlbar ist, ein Tag ist, an dem Geschäftsbanken und
Devisenmärkte Zahlungen in dem Hauptfinanzzentrum des Landes der betreffenden festgelegten Währung (falls dies nicht der Ort der Einreichung, London oder ein zusätzliches Finanzzentrum ist, und im
Falle, daß die festgelegte Währung der Australische
oder Neuseeländische Dollar ist, Sydney bzw. Auckland sein soll) abwickeln und für allgemeine Geschäfte (einschließlich des Handels in Devisen und
Fremdwährungseinlagen) geöffnet sind, oder (2) in
bezug auf eine in Euro zahlbare Summe ein Tag ist,
an dem das TARGET System geöffnet ist.
(d) Interpretation of Principal and Interest
(d) Begriffsbestimmung von Kapital und Zinsen
Any reference in these Terms and Conditions to principal in respect of the Notes shall be deemed to include, as
applicable:
Jeder Bezug in diesen Anleihebedingungen auf Kapital
in bezug auf die Teilschuldverschreibungen soll, soweit
anwendbar, folgendes einschließen:
(i) any additional amounts which may be payable
with respect to principal under Condition 8;
(i) alle zusätzlichen Beträge, die gemäß Nr. 8 hinsichtlich des Kapitals zahlbar sein können;
(ii) the Final Redemption Amount of the Notes;
(ii) den Rückzahlungsbetrag bei Endfälligkeit der
Teilschuldverschreibungen;
(iii) the Early Redemption Amount of the Notes;
(iii) den Rückzahlungsbetrag bei vorzeitiger Rückzahlung der Teilschuldverschreibungen;
(iv) the Optional Redemption Amount(s) (if any) of
the Notes;
(iv) den (die) etwaigen wahlweise(n) Rückzahlungsbetrag (-beträge) der Teilschuldverschreibungen;
(v) in relation to Instalment Notes the Instalment
Amounts;
(v) die Ratenbeträge in bezug auf in Raten rückzahlbare Teilschuldverschreibungen;
(vi) in relation to Zero Coupon Notes, the Amortised Face Amount; and
(vi) den abgezinsten Nennbetrag in bezug auf Nullkupon-Teilschuldverschreibungen; und
(vii) any premium and any other amounts which
may be payable by the Issuer under or in respect of
the Notes.
(vii) jedes Aufgeld und alle sonstigen Beträge, die
die Emittentin unter den oder in bezug auf die Teilschuldverschreibungen möglicherweise zu zahlen
hat.
Any reference in these Terms and Conditions to interest
in respect of the Notes shall be deemed to include, as
applicable, any additional amounts which may be payable with respect to interest under Condition 8.
Jeder Bezug in diesen Anleihebedingungen auf Zinsen
hinsichtlich der Teilschuldverschreibungen soll, soweit
anwendbar, alle zusätzlichen Beträge einschließen, die
möglicherweise gemäß Nr. 8 hinsichtlich der Zinsen
zahlbar sind.
7. Prescription
7. Vorlegungsfrist
The period for presentation of Notes and Receipts (§ 801 (1)
German Civil Code) shall be ten years commencing on the
due date for payment in respect thereof.
Die Vorlegungsfrist für Teilschuldverschreibungen und
Rückzahlungsscheine (§ 801 (1) BGB) beträgt zehn Jahre,
beginnend mit dem jeweiligen Fälligkeitstag.
The period for presentation of Coupons (§ 801 (2) German
Civil Code) shall be four years commencing on the due date
for payment in respect thereof.
Die Vorlegungsfrist für Zinsscheine (§ 801 (2) BGB) beträgt
vier Jahre, beginnend mit dem jeweiligen Fälligkeitstag.
The rights of holders of Coupons under § 804 (1), sentence
1 German Civil Code in respect of lost or destroyed Coupons
shall be excluded (§ 804 (2) German Civil Code).
Ein Anspruch der Inhaber von Zinsscheinen nach § 804 (1)
Satz 1 BGB wegen abhanden gekommener oder vernichteter Zinsscheine ist ausgeschlossen (§ 804 (2) BGB).
There shall not be included in any Coupon sheet issued on
exchange of a Talon any Coupon the claim for payment in
respect of which would be void pursuant to this Condition 7
or Condition 6(b) or any Talon which would be void pursuant
to Condition 6(b).
Ein im Austausch gegen einen Talon ausgegebener Zinsbogen darf keinen Zinsschein, dessen Zahlungsanspruch
gemäß dieser Nr. 7 oder gemäß Nr. 6(b) ungültig wäre, und
keinen Talon, der gemäß Nr. 6(b) ungültig wäre, enthalten.
The Issuer may deposit with the Amtsgericht Düsseldorf
(Local Court) interest and principal not claimed by the
Noteholders within 12 months after the due date thereof,
even though the respective Noteholder may not be in default
of acceptance. To the extent that the right to withdraw such
deposit is waived, all claims of the respective Noteholder
against the Issuer shall cease.
Die Emittentin kann die von den Inhabern von Teilschuldverschreibungen innerhalb von zwölf Monaten nach Fälligkeit nicht erhobenen Beträge an Zinsen und Kapital beim
Amtsgericht Düsseldorf hinterlegen, auch wenn sich die
betreffenden Inhaber von Teilschuldverschreibungen nicht
in Annahmeverzug befinden. Soweit auf das Recht der Rücknahme verzichtet wird, erlischt jeder Anspruch der betreffenden Inhaber von Teilschuldverschreibungen gegen
die Emittentin.
47
8. Taxation
8. Steuern
Unless otherwise specified in the applicable Pricing Supplement with respect to WestLB AG as Issuer of the Notes, all
payments in respect of the Notes, Receipts and Coupons
shall be made without any withholding or deduction at
source for or on account of any present or future taxes,
duties, assessments or governmental charges of whatever
nature imposed, levied, collected, withheld or assessed by
or within the jurisdiction in which the Issuer is incorporated
or any authority therein or thereof having power to tax
(“Taxes”) unless such withholding or deduction is required
by law. In that event the Issuer shall, to the fullest extent
permitted by law, pay such additional amounts as may be
necessary, in order that each Noteholder, Receiptholder
and Couponholder, after deduction or withholding of such
Taxes will receive the full amount then due and payable
provided that no such additional amount shall be payable
with respect to:
Alle Zahlungen auf die Teilschuldverschreibungen, Rückzahlungsscheine und Zinsscheine sind ohne Einbehalt oder
Quellenabzug von oder aufgrund von irgendwelchen gegenwärtigen oder zukünftigen Steuern, Abgaben, Veranlagungen oder staatlichen Gebühren gleich welcher Art, die
durch das oder in dem Land, in dem die Emittentin ihren
Sitz hat, für dieses oder durch eine zur Erhebung von Steuern („Steuern“) ermächtigte Behörde dieses Landes erhoben, auferlegt, eingezogen, einbehalten oder veranlagt werden, zu leisten, es sei denn, ein solcher Abzug oder Einbehalt ist gesetzlich vorgeschrieben. In diesem Falle wird die
Emittentin, sofern nicht [im Fall der WestLB AG] im betreffenden Pricing Supplement etwas anderes vorgesehen ist,
im vollen gesetzlich zulässigen Umfang die zusätzlichen
Beträge zahlen, die erforderlich sind, damit jeder Inhaber
von Teilschuldverschreibungen, Rückzahlungsscheinen und
Zinsscheinen nach Abzug oder Einbehalt solcher Steuern
den zu dem betreffenden Zeitpunkt fälligen und zahlbaren
Betrag in voller Höhe erhält, wobei jedoch solche zusätzlichen Beträge nicht zahlbar sind in bezug auf:
(i) any Note, Receipt or Coupon held by or on behalf
of a Noteholder (a) who is for the relevant tax purposes
treated as a resident individual or corporation of the
jurisdiction in which the Issuer is incorporated or (b)
who is able to avoid such withholding or deduction by
satisfying any statutory requirements or by making a
declaration of non-residence or other similar claims for
exemption to the relevant tax authority but fails to do so
or (c) who is otherwise liable to such Taxes by reason of
such holder being connected with the jurisdiction in
which the Issuer is incorporated other than by the mere
fact of his being a holder of such Note, Receipt or
Coupon or (d) unless otherwise specified in the applicable Pricing Supplement, who is for the relevant tax
purposes treated as a resident individual or corporation
of another Member State of the European Union or who
is otherwise liable to such Taxes by reason of such
holder being connected with another Member State of
the European Union other than by the mere fact of his
being the holder of such Note, Receipt or Coupon, and
such Taxes arise pursuant to legislation or regulations
introduced as a result of a directive of the European
Union; or
(i) eine Teilschuldverschreibung, einen Rückzahlungsschein oder Zinsschein, der/die durch oder für einen
Inhaber von Teilschuldverschreibungen gehalten wird,
der (a) für die Zwecke der betreffenden Steuergesetze
als gebietsansässige natürliche oder juristische Person
in dem Land, in dem die Emittentin ihren Sitz hat,
angesehen wird, oder (b) einen solchen Einbehalt oder
Abzug durch die Erfüllung von gesetzlichen Anforderungen oder eine Nichtansässigkeitserklärung oder einen ähnlichen Anspruch auf Befreiung gegenüber der
betreffenden Steuerbehörde vermeiden kann, solches
aber unterläßt oder (c) solchen Steuern aufgrund
anderer Beziehungen zu dem Land, in dem die Emittentin ihren Sitz hat, unterliegt als der bloßen Tatsache, daß
er Inhaber einer solchen Teilschuldverschreibung, eines
solchen Rückzahlungsscheins oder Zinsscheins ist oder
(d), sofern in dem betreffenden Pricing Supplement
nichts anderes vorgesehen ist, für die Zwecke der betreffenden Steuergesetze als gebietsansässige natürliche oder juristische Person in einem anderen Mitgliedsstaat der Europäischen Union angesehen wird oder
solchen Steuern aufgrund anderer Beziehungen zu einem anderen Mitgliedsstaat der Europäischen Union
unterliegt als der bloßen Tatsache, daß er Inhaber einer
solchen Teilschuldverschreibung, eines solchen Rückzahlungsscheins oder Zinsscheins ist, und solche
Steuern aufgrund von Gesetzen oder Verordnungen anfallen, die durch eine Richtlinie der Europäischen Union
eingeführt worden sind;
(ii) any Note, Receipt or Coupon presented for payment
more than 30 days after the Relevant Date (as defined
below), except to the extent that the holder would have
been entitled to such additional amount on presenting
the same for payment on the last day of such period of
30 days; or
(ii) eine Teilschuldverschreibung, einen Rückzahlungsschein oder Zinsschein, die/der mehr als 30 Tage nach
dem Stichtag (wie nachstehend definiert) zur Zahlung
vorgelegt wird; dieses gilt nicht, soweit der Inhaber
Anspruch auf einen solchen zusätzlichen Betrag gehabt
hätte, wenn er die Teilschuldverschreibung, den Rückzahlungsschein oder Zinsschein am letzten Tag dieser
30-Tage-Frist zur Zahlung vorgelegt hätte; oder
(iii) Taxes which are deducted or withheld by a Paying
Agent from a payment if the payment could have been
made by another Paying Agent without such deduction
or withholding; or
(iii) Steuern, die von einer Zahlstelle abgezogen oder
einbehalten werden, wenn die Zahlung durch eine
andere Zahlstelle ohne solchen Abzug oder Einbehalt
hätte erfolgen können; oder
(iv) Taxes which are only deducted or withheld because
the Notes, Receipts or Coupons are being presented for
payment effectively at the counter; or
(iv) Steuern, die nur deshalb abgezogen oder einbehalten werden, weil die Teilschuldverschreibungen, Rückzahlungsscheine oder Zinsscheine effektiv zur Einlösung am Schalter vorgelegt werden; oder
(v) in the case of Notes issued by an Issuer which is
incorporated in a jurisdiction which is a member state
of the European Community, any Note or Coupon is
presented for payment in that jurisdiction; or
(v) im Fall von Teilschuldverschreibungen, die von einer
Emittentin mit Sitz in einem Mitgliedsstaat der Europäischen Gemeinschaft begeben wurden, in diesem Staat
zur Zahlung vorgelegte Teilschuldverschreibungen oder
Zinsscheine; oder
(vi) any withholding or deduction which is imposed on
a payment to an individual and is required to be made
pursuant to any European Union Directive on the taxation of savings implementing the conclusions of the
(vi) jeden Einbehalt oder Abzug hinsichtlich einer
Zahlung an eine natürliche Person, der aufgrund einer
Richtlinie der Europäischen Union zur Besteuerung von
Kapitaleinkünften, welche die Ergebnisse der Sitzung
48
ECOFIN Council meeting of 26th-27th November, 2000
or any law implementing or complying with, or introduced in order to conform to, such Directive; or
des ECOFIN-Rats vom 26./27. November 2000 umsetzt,
oder aufgrund eines Gesetzes, das diese Richtlinie umsetzt, mit ihr im Einklang steht oder verabschiedet wurde, um diesen Einklang herzustellen, vorgenommen
werden muß; oder
(vii) any Note, Receipt or Coupon presented for payment by or an behalf of a holder who would have been
able to avoid such withholding or deduction by presenting the relevant Note to another Paying Agent in a
Member State of the EU.
(vii) eine Teilschuldverschreibung, einen Rückzahlungsschein oder Zinsschein, die/der durch oder für einen
Inhaber zur Zahlung vorgelegt wird, wenn dieser Inhaber einen solchen Abzug oder Einbehalt durch Vorlage
der betreffenden Teilschuldverschreibung bei einer anderen Zahlstelle in einem Mitgliedsstaat der EU hätte
vermeiden können.
For the purposes of these Terms and Conditions, the
“Relevant Date” means the date on which such payment
first becomes due, except that, if the full amount of the
moneys payable has not been duly received by the Agent on
or prior to such due date, it means the date on which, the full
amount of such moneys having been so received, notice to
that effect is duly given to the Noteholders in accordance
with Condition 16.
Für die Zwecke dieser Anleihebedingungen bedeutet
„Stichtag“ den Tag, an dem eine solche Zahlung zuerst
fällig wird. Wenn jedoch der Agent die volle Summe der zu
zahlenden Beträge nicht am oder vor dem jeweiligen Fälligkeitstag ordnungsgemäß erhalten hat, dann ist der Stichtag
der Tag, an dem, nachdem die volle Summe der zu zahlenden Beträge bei dem Agent eingegangen ist, dieses den
Inhabern von Teilschuldverschreibungen gemäß Nr. 16 ordnungsgemäß mitgeteilt wird.
9. Negative Pledge in the Case of Senior Notes Issued
by WestLB Finance Curaçao N.V. or WestLB
Finance Netherlands B.V.
9. Negativerklärung im Fall von nicht nachrangigen
Teilschuldverschreibungen, die von der WestLB
Finance Curaçao N.V. oder der WestLB Finance
Netherlands B.V. ausgegeben werden.
The Issuer undertakes (vis-à-vis the Noteholders, the
Receiptholders and the Couponholders) so long as any of
the Notes remain outstanding that the Issuer will not create
any mortgage, lien, pledge or other charge on the assets of
the Issuer to secure any bonds, debentures, notes or other
similar securities, other than certificates of deposit, having
a final maturity of more than one year from the date of their
issue (under this Condition 9 referred to as “Obligation(s)”),
without at the same time according to the Notes equally and
rateably the same security. The foregoing covenant shall
not, however, apply to any security given by the Issuer in
respect of any such Obligation where such security consists
only of an assignment of or a charge upon (a) a deposit of an
amount not exceeding the aggregate principal of and premium (if any) on such Obligation at the time when it is
incurred and (b) any interest that may thereafter accrue
thereon.
Die Emittentin verpflichtet sich (gegenüber den Inhabern
von Teilschuldverschreibungen, Rückzahlungsscheinen und
Zinsscheinen), solange irgendeine Teilschuldverschreibung
aussteht, kein Grund- oder Mobiliarpfandrecht oder sonstige Sicherheit an ihrem Vermögen zur Besicherung irgendwelcher Schuldverschreibungen oder ähnlicher Wertpapiere (mit Ausnahme von Certificates of Deposit) mit einer
Endfälligkeit von mehr als einem Jahr ab dem Zeitpunkt
ihrer Begebung (in dieser Nr. 9 „Obligation(en)“ genannt)
zu bestellen, ohne diese Teilschuldverschreibungen zu gleicher Zeit und im gleichen Rang anteilig an dieser Sicherheit
teilnehmen zu lassen. Die vorstehende Verpflichtung gilt
jedoch nicht für eine Sicherheit, die die Emittentin in bezug
auf eine Obligation eingeräumt hat, wenn diese Sicherheit
nur aus einer Abtretung oder einer Belastung (a) einer
Einlage, deren Höhe den gesamten Kapitalbetrag und das
etwaige Aufgeld dieser Obligation zu dem Zeitpunkt, in
dem sie begründet wurde, nicht übersteigt, und (b) der
etwaigen Zinsen, die danach auf diese Einlage anfallen,
besteht.
10. Agent and Paying Agents
10. Agent und Zahlstellen
The names of the initial Agent and the other initial Paying
Agents and their initial specified offices are:
Die Namen des anfänglichen Agent und der übrigen anfänglichen Zahlstellen und ihre anfänglichen festgelegten
Geschäftsstellen sind:
Agent: WestLB AG, Herzogstrasse 15, 40217 Düsseldorf,
Germany;
Agent: WestLB AG, Herzogstraße 15, 40217 Düsseldorf,
Deutschland;
Paying Agent: WestLB International S.A., 32-34 boulevard
Grande-Duchesse Charlotte, L-2014 Luxembourg.
Zahlstelle: WestLB International S.A., 32-34 boulevard Grande-Duchesse Charlotte, L-2014 Luxemburg.
The Issuer and the Guarantor are entitled to vary or terminate the appointment of any Paying Agent and/or appoint
additional or other Paying Agents and/or approve any
change in the specified office through which any Paying
Agent acts, provided that:
Die Emittentin und die Garantin sind berechtigt, die Bestellung einer Zahlstelle abzuändern oder zu widerrufen und/
oder weitere oder andere Zahlstellen zu bestellen und/oder
eine Änderung der festgelegten Geschäftsstelle, durch die
eine Zahlstelle tätig wird, zu genehmigen, vorausgesetzt
daß
(i) so long as the Notes are listed on any stock exchange,
there will at all times be a Paying Agent having a specified location required by the rules and regulations of the
relevant stock exchange;
(i) solange die Teilschuldverschreibungen an einer Börse
notiert werden, jederzeit eine Zahlstelle mit festgelegter
Geschäftsstelle an dem Ort, der nach den allgemeinen
Geschäftsbedingungen dieser Börse erforderlich ist, unterhalten wird;
(ii) there will at all times be a Paying Agent with a
specified office in a city in continental Europe and outside Germany;
(ii) jederzeit eine Zahlstelle mit einer festgelegten Geschäftsstelle in einer Stadt in Kontinental-Europa und
außerhalb Deutschlands unterhalten wird;
49
(iii) there will at all times be an Agent; and
(iii) es jederzeit einen Agent gibt;und
(iv) in the event of the conclusions of the ECOFIN Council Meeting of 26th-27th November, 2000 being implemented there will at all times be a Paying Agent in a
member state of the European Union that will not be
obliged to withhold or deduct tax pursuant to the proposed European Union Directive on the taxation of savings
if such member state exists.
(iv) falls die Ergebnisse der Sitzung des ECOFIN-Rats
vom 26./27. November 2000 umgesetzt werden, es jederzeit eine Zahlstelle in einem Mitgliedsstaat der Europäischen Union gibt, der nicht verpflichtet ist, gemäß
der vorgesehenen Richtlinie der Europäischen Union
zur Besteuerung von Kapitaleinkünften Steuern einzubehalten oder abzuziehen, soweit es einen solchen Mitgliedsstaat gibt.
In addition, the Issuer and the Guarantor shall forthwith
appoint a Paying Agent having a specified office in New
York City in the circumstances described in the final paragraph of Condition 6(b). Any variation, termination,
appointment or change shall only take effect (other than in
the case of insolvency, when it shall be of immediate effect)
after not less than 30 nor more than 45 days’ prior notice
thereof shall have been given to the Noteholders in accordance with Condition 16.
Außerdem werden die Emittentin und die Garantin bei Eintritt der im letzten Absatz der Nr. 6(b) beschriebenen Ereignisse unverzüglich eine Zahlstelle mit einer festgelegten
Geschäftsstelle in New York City bestellen. Jede Änderung,
Abberufung oder Bestellung werden erst wirksam (außer
im Fall der Zahlungsunfähigkeit, in dem sie unverzüglich
wirksam werden), wenn eine vorherige Mitteilung mit einer
Frist von mindestens 30 und höchstens 45 Tagen an die
Inhaber von Teilschuldverschreibungen gemäß Nr. 16 vorgenommen wurde.
Should any contingency arise which, in the opinion of the
Agent would result in its being unable for reasons beyond
its control to act as Agent, it shall then be entitled to
appoint as Agent another bank of international standing. If,
in such case, the Agent is unable to transfer its responsibilities as Agent, the Issuer shall be entitled and obliged
to appoint a new Agent. The appointment of another Agent
shall be published without delay by both the Agent and
the Issuer in accordance with Condition 16 or, should this
not be possible, be announced in some other appropriate
way.
Sollten irgendwelche Umstände eintreten, die es dem Agent
aufgrund von Umständen außerhalb seiner Kontrolle unmöglich machen, als Agent zu agieren, ist der Agent berechtigt, eine andere Bank von internationalem Rang als
Agent zu ernennen. Falls der Agent in einem solchen Falle
nicht in der Lage sein sollte, seine Verantwortlichkeiten als
Agent zu übertragen, ist die Emittentin berechtigt und verpflichtet, einen neuen Agent zu ernennen. Die Ernennung
eines neuen Agent ist unverzüglich sowohl durch den Agent
als auch durch die Emittentin gemäß Nr. 16 oder, falls dieses nicht möglich sein sollte, in einer anderen geeigneten
Weise zu verkünden.
All certificates, communications, opinions, determinations,
calculations, quotations and decisions given, expressed,
made or obtained for the purposes of these Terms and
Conditions by the Agent shall (in the absence of wilful
default, bad faith or manifest error) be binding on the Issuer, the Guarantor, the Agent, the other Paying Agents and all
Noteholders, Receiptholders and Couponholders and (in
the absence as aforesaid) no liability to the Issuer, the
Guarantor, the Noteholders, the Receiptholders or the Couponholders shall attach to the Agent in connection with the
exercise or non-exercise by it of its powers, duties and
discretions pursuant to such provisions.
Alle Bescheinigungen, Mitteilungen, Gutachten, Festsetzungen, Berechnungen, Quotierungen und Entscheidungen, die für die Zwecke der Bestimmungen dieser Anleihebedingungen vom Agent erteilt, abgegeben, vorgenommen oder eingeholt worden sind, sind (sofern keine
vorsätzliche Pflichtverletzung, kein böser Glaube und kein
offensichtlicher Irrtum vorliegen) für die Emittentin, die
Garantin, den Agent, die anderen Zahlstellen sowie für alle
Inhaber von Teilschuldverschreibungen, Rückzahlungsscheinen und Zinsscheinen bindend, und (sofern keiner
der oben genannten Umstände vorliegt) haftet der Agent
nicht gegenüber der Emittentin, der Garantin, den Inhabern
von Teilschuldverschreibungen, Rückzahlungsscheinen
oder Zinsscheinen im Zusammenhang mit der Ausübung
oder Nichtausübung seiner Rechte, Pflichten und seines
Ermessens gemäß solchen Bestimmungen.
11. Events of Default Relating to Senior Notes
11. Kündigungsgründe in Bezug auf nicht nachrangige
50
(a) The holder of any Senior Note may give written
notice as mentioned in Condition 11(b) below that the
Senior Note is, and it shall accordingly forthwith become
(unless prior to the time when such written notice is
received all such defaults shall have been remedied),
immediately due and repayable at its Early Redemption
Amount, together, if appropriate, with interest accrued
to the date of repayment, in any of the following events
(“Events of Default”):
(a) Der Inhaber einer nicht nachrangigen Teilschuldverschreibung kann durch schriftliche Kündigung – wie
unten unter Nr. 11(b) erwähnt – die nicht nachrangige
Teilschuldverschreibung fällig stellen, und diese wird
unverzüglich (außer wenn vor Eingang der schriftlichen
Kündigung alle diesbezüglichen Kündigungsgründe geheilt wurden) fällig und zu ihrem Rückzahlungsbetrag
bei vorzeitiger Rückzahlung, zuzüglich etwaiger bis zum
Rückzahlungstag angefallener Stückzinsen, zahlbar,
wenn eines der folgenden Ereignisse („Kündigungsgründe“) eintritt:
(i) the Issuer is in default, for any reason whatsoever, for more than 30 days in the payment of any
amounts due under the Senior Notes; or
(i) die Emittentin, gleichgültig aus welchen Gründen, mit ihren Zahlungsverpflichtungen aus den
nicht nachrangigen Teilschuldverschreibungen länger als 30 Tage in Verzug kommt; oder
(ii) the Issuer is in default in the performance of any
of its obligations under the Senior Notes and such
default shall continue for more than 60 days after
written notification requiring such default to be
remedied shall have been given to the Issuer by
any of the holders of Senior Notes through the Agent;
or
(ii) die Emittentin mit der Erfüllung irgendeiner
ihrer Verpflichtungen aus den nicht nachrangigen
Teilschuldverschreibungen in Verzug kommt und
ein solcher Verzug mehr als 60 Tage andauert, nachdem von einem Inhaber einer nicht nachrangigen
Teilschuldverschreibung über den Agent eine
schriftliche Aufforderung zur Beseitigung des Verzugs an die Emittentin ergangen ist; oder
(iii) the Guarantor is in default in the performance
of any of its obligations under the Senior Guarantee
and such default shall continue for more than 60 days
after a written notification requiring such default to
be remedied shall have been given to the Guarantor
by any of the holders of Senior Notes through the
Agent; or
(iii) die Garantin mit der Erfüllung irgendeiner ihrer
Verpflichtungen aus der nicht nachrangigen Garantie in Verzug kommt und ein solcher Verzug mehr
als 60 Tage andauert, nachdem von einem Inhaber
einer nicht nachrangigen Teilschuldverschreibung
über den Agent eine schriftliche Aufforderung zur
Beseitigung des Verzugs an die Garantin ergangen
ist; oder
(iv) bankruptcy or court composition proceedings
are commenced before a court against the Issuer or
the Guarantor which shall not have been dismissed
or stayed within 60 days after the commencement
thereof, or the Issuer or the Guarantor institutes
such proceedings or suspends payments or offers
or makes a general arrangement for the benefit of all
its creditors, or in the case of Senior Notes issued by
WestLB Finance Netherlands B.V., bankruptcy proceedings or a moratorium of payment (“surseance
van betaling”) are commenced before a court against
WestLB Finance Netherlands B.V. which shall not
have been dismissed or stayed within 60 days after
the commencement thereof; or
(iv) gegen die Emittentin oder die Garantin ein Konkurs- oder Vergleichsverfahren gerichtlich eröffnet
wird, das nicht innerhalb von 60 Tagen nach dessen
Eröffnung aufgehoben oder ausgesetzt worden ist,
oder die Emittentin oder die Garantin ein solches
Verfahren beantragt oder ihre Zahlungen einstellt
oder einen generellen Vergleich zugunsten der Gesamtheit ihrer Gläubiger anbietet oder durchführt,
oder im Falle von nicht nachrangigen Teilschuldverschreibungen, die von der WestLB Finance Netherlands B.V. begeben wurden, ein Konkurs- oder ein
Vergleichsverfahren („surseance van betaling“) gerichtlich gegen die WestLB Finance Netherlands
B.V. eröffnet wird, das nicht innerhalb von 60 Tagen
nach dessen Eröffnung aufgehoben oder ausgesetzt
worden ist; oder
(v) the Issuer or the Guarantor goes into liquidation
unless such liquidation is to take place in connection
with a merger, consolidation or other combination
with another company and such company assumes
all obligations of the Issuer under these Terms and
Conditions or of the Guarantor under the Senior
Guarantee.
(v) die Emittentin oder die Garantin in Liquidation
geht, es sei denn, daß eine solche Liquidation im
Zusammenhang mit einer Verschmelzung, Konsolidierung oder einer anderen Form des Zusammenschlusses mit einer anderen Gesellschaft vorgenommen wird und diese Gesellschaft – im Fall der Emittentin – alle Verpflichtungen aus diesen
Anleihebedingungen – oder im Fall der Garantin –
alle Verpflichtungen aus der nicht nachrangigen
Garantie übernimmt.
(b) A Noteholder shall exercise his right to declare Notes
due by delivering or sending by registered mail to the
Agent a written notice which shall state the principal
amount of the Notes declared due and shall enclose
evidence that such Noteholder at the time of such notice
is a holder of the relevant Notes by means of a certificate
of the Noteholder’s Custodian pursuant to Condition
18(e).
(b) Ein Inhaber von Teilschuldverschreibungen soll
sein Recht, Teilschuldverschreibungen fällig zu stellen,
durch Übergabe einer schriftlichen Erklärung an den
Agent oder durch Übersendung einer schriftlichen Erklärung an den Agent mittels Einschreiben ausüben;
diese schriftliche Erklärung hat den Nennbetrag der
fällig gestellten Teilschuldverschreibungen anzugeben
und den Beweis, daß dieser Inhaber von Teilschuldverschreibungen zur Zeit der Kündigung Inhaber der betreffenden Teilschuldverschreibungen ist, durch eine
Bestätigung der Depotbank des Inhabers der Teilschuldverschreibungen gemäß Nr. 18(e) zu enthalten.
12. Replacement of Notes, Receipts, Coupons and
Talons
12. Ersetzung von Teilschuldverschreibungen,
Rückzahlungsscheinen, Zinsscheinen und Talons
Should any Note, Receipt, Coupon or Talon be lost, stolen,
mutilated, defaced or destroyed, it may be replaced at the
specified office of the Agent, subject to relevant stock
exchange requirements and all applicable laws, upon
payment by the claimant of such costs and expenses as may
be incurred in connection therewith and on such terms as to
evidence, security and indemnity and otherwise as the Issuer may reasonably require. Mutilated or defaced Notes,
Receipts, Coupons or Talons must be surrendered before
replacements will be issued.
Sollte irgendeine Teilschuldverschreibung, ein Rückzahlungsschein, Zinsschein oder Talon verloren gehen, gestohlen, beschädigt, unleserlich gemacht oder zerstört werden, so kann sie/er vorbehaltlich der betreffenden Börsenbestimmungen und aller anwendbaren Gesetze in der festgelegten Geschäftsstelle des Agent ersetzt werden; dabei
hat der Anspruchsteller alle dabei möglicherweise anfallenden Kosten und Aufwendungen zu tragen und alle angemessenen Bedingungen der Emittentin hinsichtlich des
Nachweises, der Sicherheit, der Freistellung und dergleichen zu erfüllen. Beschädigte oder unleserlich gemachte
Teilschuldverschreibungen, Rückzahlungsscheine, Zinsscheine oder Talons müssen eingereicht werden, bevor Ersatzurkunden ausgegeben werden.
13. Exchange of Talons
13. Austausch von Talons
On and after the Fixed Interest Date or the Interest Payment
Date, as appropriate, on which the final Coupon comprised
in any Coupon sheet matures, the Talon (if any) forming part
of such Coupon sheet may be surrendered at the specified
office of the Agent or any other Paying Agent in exchange
for a further Coupon sheet including (if such further Coupon
sheet does not include Coupons to (and including) the final
date for the payment of interest due in respect of the Note to
An und nach dem Festzinstermin bzw. dem Zinstermin, an
dem der letzte Zinsschein eines Zinsbogens fällig wird,
kann der etwaige Talon, der Teil dieses Zinsbogens bildet,
bei der festgelegten Geschäftsstelle des Agent oder einer
anderen Zahlstelle vorbehaltlich der Bestimmungen der
Nr. 7 gegen einen weiteren Zinsbogen ausgetauscht werden, der (falls er nicht Zinsscheine bis zum letzten Termin
(einschließlich desselben) für die Zahlung von Zinsen, die
51
which it appertains) a further Talon, subject to the provisions of Condition 7. Each Talon shall, for the purposes of
these Terms and Conditions, be deemed to mature on the
Fixed Interest Date or the Interest Payment Date (as the case
may be) on which the final Coupon comprised in the relative
Coupon sheet matures.
in bezug auf die dazugehörige Teilschuldverschreibung geschuldet werden, enthält) einen weiteren Talon umfaßt. Für
die Zwecke dieser Anleihebedingungen soll jeder Talon an
dem Festzinstermin bzw. dem Zinstermin fällig werden, an
dem der letzte Zinsschein des betreffenden Zinsbogens
fällig wird.
14. Substitution of the Issuer
14. Ersetzung der Emittentin
52
(a) WestLB AG in its capacity as Issuer or Guarantor, as
the case may be, shall be entitled at any time, without
the consent of the Noteholders or Couponholders, to
substitute for the Issuer any other company, including
itself (if it is not the Issuer), as debtor (the “Substituted
Debtor”) in respect of all obligations arising from or in
connection with the Notes, provided that:
(a) Die WestLB AG in ihrer etwaigen Eigenschaft als
Emittentin oder Garantin ist zu jeder Zeit berechtigt,
ohne Zustimmung der Inhaber von Teilschuldverschreibungen oder Zinsscheinen eine andere Gesellschaft,
einschließlich sich selbst (sofern sie nicht die Emittentin ist), als Schuldnerin (die „Ersatzschuldnerin“) hinsichtlich aller Verpflichtungen aus oder in Verbindung
mit den Teilschuldverschreibungen an die Stelle der
Emittentin zu setzen, sofern:
(i) the Substituted Debtor assumes all obligations
of the Issuer arising from or in connection with the
Notes and under the Terms and Conditions of the
Notes;
(i) die Ersatzschuldnerin alle Verpflichtungen der
Emittentin aus oder in Verbindung mit den Teilschuldverschreibungen und unter diesen Anleihebedingungen übernimmt;
(ii) if WestLB AG is not the Substituted Debtor, the
Senior Guarantee or the Subordinated Guarantee,
as the case may be, continues to be in full force and
effect after substitution;
(ii) die nicht nachrangige oder die nachrangige
Garantie (je nachdem) nach der Ersetzung uneingeschränkt rechtsgültig und wirksam bleibt, falls die
WestLB AG nicht die Ersatzschuldnerin ist;
(iii) the Substituted Debtor may acquire and transfer to the Agent, in the freely convertible and transferable Specified Currency, all amounts required for
the performance of the payment obligations arising
from or in connection with the Notes;
(iii) die Ersatzschuldnerin alle Beträge, die zur Erfüllung der aus oder in Verbindung mit den Teilschuldverschreibungen entstehenden Zahlungsverpflichtungen erforderlich sind, in der frei konvertierbaren und transferierbaren festgelegten Währung
an den Agent transferieren darf;
(iv) if the Substituted Debtor is not the Guarantor,
the obligations of the State of North Rhine-Westphalia, the Landschaftsverbände Rheinland and
Westfalen-Lippe (Regional Associations of the
Rhineland and of Westphalia-Lippe), the Rheinischer
Sparkassen- und Giroverband and WestfälischLippischer Sparkassen- und Giroverband (Regional
Associations of the Savings Banks in the Rhineland
and in Westphalia-Lippe) under the statutory
guarantee (Gewährträgerhaftung) and under the
constitutional liability (Anstaltslast) to the extent in
effect with respect to the Notes immediately prior to
such substitution will not be affected by such substitution in respect of the obligations of the Guarantor
under the guarantee to be given pursuant to (ii)
above; and
(iv) für den Fall, daß die Ersatzschuldnerin nicht die
Garantin ist, die Verpflichtungen des Landes Nordrhein-Westfalen, der Landschaftsverbände Rheinland und Westfalen-Lippe, des Rheinischen Sparkassen- und Giroverbandes und des WestfälischLippischen Giroverbandes unter der Gewährträgerhaftung sowie unter der Anstaltslast, wie sie
in bezug auf die Teilschuldverschreibungen unmittelbar vor einer solchen Ersetzung wirksam waren,
durch diese Ersetzung insoweit nicht berührt werden, wie sie sich auf die Verpflichtungen der
Garantin unter der nach (ii) oben zu gebenden
Garantie beziehen; und
(v) if the Substituted Debtor is the Guarantor, the
statutory guarantee and the constitutional liability
referred to in paragraph (iv) above, to the extent in
effect with respect to the Notes immediately prior to
such substitution, will not be affected by the
Guarantor’s assumption of the obligations of the
Issuer arising from or in connection with the Notes
and under the Terms and Conditions of the Notes.
(v) für den Fall, daß die Ersatzschuldnerin die
Garantin ist, die vorstehend unter (iv) erwähnte
Gewährträgerhaftung und Anstaltslast, wie sie in
bezug auf die Teilschuldverschreibungen unmittelbar vor einer solchen Ersetzung wirksam waren,
durch die Übernahme der Verpflichtungen der Emittentin aus oder in Verbindung mit den Teilschuldverschreibungen und unter den Anleihebedingungen durch die Garantin nicht berührt werden.
(b) In addition, if the Notes are Subordinated Notes and
the Substituted Debtor is not the Guarantor, substitution shall not take effect unless (a) the Substituted Debtor
is a subsidiary (Tochterunternehmen) within the meaning of §§ 1 (7) and 10 (5a) No. 3 of the Kreditwesengesetz (the German Banking Act) which has been
established solely for the purpose of raising funds; (b)
the obligations assumed by the Substituted Debtor in
respect of the Subordinated Notes and the Coupons and
Receipts relating to them are subordinated on terms
identical to the terms of the Subordinated Notes; (c) the
Substituted Debtor deposits an amount which is equal
to the aggregate principal amount of the Subordinated
Notes with the Guarantor on terms equivalent, inclu-
(b) Wenn es sich darüber hinaus bei den Teilschuldverschreibungen um nachrangige Teilschuldverschreibungen handelt und die Ersatzschuldnerin nicht die Garantin ist, wird eine Ersetzung nur wirksam, wenn (a) die
Ersatzschuldnerin ein Tochterunternehmen im Sinne
der §§ 1 (7) und 10 (5a) Nr. 3 Kreditwesengesetz ist, die
ausschließlich zu dem Zweck der Kapitalaufnahme gegründet wurde, (b) die durch die Ersatzschuldnerin
hinsichtlich der nachrangigen Teilschuldverschreibungen sowie der auf diese bezogenen Zinsscheine und
Rückzahlungsscheine übernommenen Verpflichtungen
unter identischen Bedingungen nachrangig sind wie
die nachrangigen Teilschuldverschreibungen, (c) die
Ersatzschuldnerin eine Einlage in Höhe eines Betrages,
ding in respect of subordination, to the terms and conditions of the Subordinated Notes, and (d) the Guarantor guarantees the obligations of the Substituted Debtor
in respect of the Subordinated Notes and the Coupons
and Receipts relating to them on a subordinated basis
on terms equivalent to the terms of the Subordinated
Notes regarding subordination.
der dem gesamten Nennbetrag der nachrangigen Teilschuldverschreibungen entspricht, bei der Garantin vornimmt und zwar zu Bedingungen, die den Anleihebedingungen der nachrangigen Teilschuldverschreibungen, einschließlich hinsichtlich der Nachrangigkeit, entsprechen und (d) die Garantin die Verpflichtungen der
Ersatzschuldnerin hinsichtlich der nachrangigen Teilschuldverschreibungen und der auf sie bezogenen Zinsscheine und Rückzahlungsscheine auf nachrangiger Basis entsprechend den Bedingungen der nachrangigen
Teilschuldverschreibungen hinsichtlich der Nachrangigkeit garantiert.
(c) Any substitution effected pursuant to this Condition
shall be binding on the Noteholders and shall be notified
to the Noteholders in accordance with Condition 16.
(c) Eine Ersetzung gemäß dieser Bestimmung ist für die
Inhaber von Teilschuldverschreibungen bindend und
wird den Inhabern von Teilschuldverschreibungen entsprechend Nr. 16 bekannt gemacht.
(d) Upon any such substitution, the Notes and Coupons
will be deemed to be modified to the extent necessary to
give effect to such substitution.
(d) Durch eine solche Ersetzung gelten die Teilschuldverschreibungen und Zinsscheine insoweit als angepasst, als es für die Wirksamkeit der Ersetzung erforderlich ist.
15. Further Issues
15. Weitere Emissionen
The Issuer shall be at liberty from time to time without the
consent of the Noteholders, Receiptholders or Couponholders to create and issue further notes ranking pari passu
in all respects with and on the same terms and conditions
(save for the amount and date of the first payment
of interest thereon) as, and so that the same shall be consolidated and form a single series with, the outstanding Notes.
Der Emittentin steht es frei, von Zeit zu Zeit ohne Zustimmung der Inhaber von Teilschuldverschreibungen, Rückzahlungsscheinen oder Zinsscheinen weitere, in jeder Hinsicht gleichrangige und unter gleichen Bedingungen (mit
Ausnahme des Betrages und des Datums der ersten Zinszahlung darauf) stehende Teilschuldverschreibungen zu
schaffen und in der Weise zu begeben, daß sie mit den nicht
zurückbezahlten Teilschuldverschreibungen zusammengefaßt werden und eine einheitliche Serie bilden.
16. Notices
16. Bekanntmachungen
All notices regarding the Notes shall be published in:
Alle Bekanntmachungen in bezug auf die Teilschuldverschreibungen werden veröffentlicht in:
(i) a leading English language daily newspaper of
general circulation in London and in the Bundesanzeiger
of the Federal Republic of Germany;
(i) einer führenden englischsprachigen Tageszeitung
von allgemeiner Verbreitung in London und dem Bundesanzeiger der Bundesrepublik Deutschland;
(ii) if and for so long as the Notes are listed on the
Luxembourg Stock Exchange, a daily newspaper of
general circulation in Luxembourg; and
(ii) falls und so lange, wie die Teilschuldverschreibungen an der Luxemburger Börse notiert sind, einer
Tageszeitung von allgemeiner Verbreitung in Luxemburg; und
(iii) if and for so long as the Notes are listed on any other
stock exchange, a daily newspaper of general circulation
acceptable to such stock exchange.
(iii) falls und so lange, wie die Teilschuldverschreibungen an einer anderen Börse notiert sind, einer Tageszeitung von allgemeiner Verbreitung, die für diese Börse
akzeptabel ist.
The Issuer shall also ensure that notices are duly published
in a manner which complies with the rules and regulations
of any stock exchange or any other relevant authority on
which the Notes are for the time being listed.
Die Emittentin hat ferner sicherzustellen, daß Bekanntmachungen den Vorschriften jeder Börse, an der die Teilschuldverschreibungen jeweils notiert sind, bzw. den Vorschriften irgendeiner anderen Aufsichtsbehörde entsprechend ordnungsgemäß veröffentlicht werden.
It is expected that such publication will be made in the
Financial Times in London and the Luxemburger Wort in
Luxembourg. Notices will be deemed to have been given on
the date of the first publication in the above mentioned
newspapers.
Voraussichtlich werden diese Bekanntmachungen in der
Financial Times in London und im Luxemburger Wort in
Luxemburg erfolgen. Bekanntmachungen gelten als erfolgt
am Datum der ersten Veröffentlichung in den oben genannten Zeitungen.
Until such time as any definitive Notes are issued, there
may (provided that, in the case of Notes listed on a stock
exchange, such stock exchange so agrees), so long as the
global Note(s) is or are held in its or their entirety on behalf
of the Relevant Clearing System, be substituted for such
publication in such newspaper the delivery of the relevant
notice to the Relevant Clearing System for communication
by it to the holders of the Notes and in addition, for so long
as any Notes are listed on a stock exchange and the rules of
that stock exchange or any other relevant authority so requires, such notice will be published in a daily newspaper of
general circulation in the place or places requested by the
rules of that stock exchange or any relevant authority. Any
Bis zu dem Zeitpunkt, an dem effektive Teilschuldverschreibungen ausgeliefert werden, darf (vorausgesetzt die betreffende Börse stimmt dem zu, falls Teilschuldverschreibungen an einer Börse notiert sind) eine solche Veröffentlichung so lange, wie die Global-Teilschuldverschreibung(en)
bei dem relevanten Abrechnungssystem hinterlegt ist (sind),
durch eine Mitteilung an das relevante Abrechnungssystem
zwecks Weiterleitung an die Inhaber von Teilschuldverschreibungen ersetzt werden. Zusätzlich wird, solange Teilschuldverschreibungen an einer Börse notiert sind und die
Bestimmungen dieser Börse oder einer anderen zuständigen Behörde dies erfordern, die betreffende Bekanntmachung in einer Tageszeitung von allgemeiner Verbreitung
53
such notice shall be deemed to have been given to the
holders of the Notes on the seventh day after the day on
which the said notice was given to the Relevant Clearing
System.
an dem bzw. den von dieser Börse oder zuständigen Behörde vorgeschriebenen Ort(en) veröffentlicht. Eine solche Bekanntmachung gilt den Inhabern von Teilschuldverschreibungen gegenüber als am 7. Tag, nach dem diese dem
relevanten Abrechnungssystem gegenüber übermittelt wurde, erfolgt.
Notices to be given by any Noteholder shall be in writing
and given by lodging the same, together with the relative
Note or Notes, with the Agent. Whilst any of the Notes are
represented by a global Note, such notice may be given by
any Noteholder to the Agent via the Relevant Clearing
System in such manner as the Agent and the Relevant
Clearing System may approve for this purpose.
Kündigungen, die von einem Inhaber von Teilschuldverschreibungen erklärt werden, müssen schriftlich erfolgen
und zusammen mit der oder den betreffenden Teilschuldverschreibung(en) an den Agent geleitet werden. Solange Teilschuldverschreibungen durch eine Global-Teilschuldverschreibung repräsentiert sind, kann eine solche
Kündigung von einem Inhaber einer Teilschuldverschreibung an den Agent über das relevante Abrechnungssystem
in der vom Agent und von dem relevanten Abrechnungssystem dafür vorgesehenen Weise erfolgen.
17. Liability of the Agent and the Paying Agents
17. Haftung des Agent und der Zahlstellen
The Agent and the Paying Agents shall only be held
responsible for giving, failing to give, or accepting a declaration or for acting or failing to act on behalf of the Issuer or
for the Noteholders, if and insofar as they have failed to act
with the diligence of a prudent businessman.
Der Agent und die Zahlstellen haften dafür, daß sie für die
Emittentin oder für die Inhaber von Teilschuldverschreibungen Erklärungen abgeben, nicht abgeben oder entgegennehmen, Handlungen vornehmen oder unterlassen,
nur, wenn und soweit sie die Sorgfalt eines ordentlichen
Kaufmanns verletzt haben.
The Agent shall be exempted from the restrictions of
§ 181 BGB (German Civil Code) and as far as legally possible,
from any similar restrictions of the laws of other countries.
Der Agent ist von den Beschränkungen des § 181 BGB und,
soweit gesetzlich möglich, von jeder vergleichbaren Beschränkung unter dem Recht anderer Staaten befreit.
18. Governing Law and Submission to Jurisdiction
18. Anwendbares Recht und Gerichtsstand
54
(a) Governing Law
(a) Anwendbares Recht
The Notes, the Receipts, the Coupons and the Talons, as
to form and content, and all rights and duties of the
holders of Notes, Receipts, Coupons and Talons, the
Issuer, the Guarantor, the Agent and the Paying Agents,
are governed by, and shall be construed exclusively in
accordance with, the laws of the Federal Republic of
Germany.
Form und Inhalt der Teilschuldverschreibungen, der
Rückzahlungsscheine, der Zinsscheine und der Talons
sowie alle Rechte und Pflichten der Inhaber von Teilschuldverschreibungen, Rückzahlungsscheinen, Zinsscheinen und Talons, der Emittentin, der Garantin, des
Agent und der Zahlstellen unterliegen dem Recht der
Bundesrepublik Deutschland und sollen ausschließlich
dementsprechend ausgelegt werden.
(b) Jurisdiction
(b) Gerichtsstand
The place of jurisdiction for all proceedings arising out
of or in connection with the Notes, Receipts and Coupons
shall be Düsseldorf. The holders of Notes, Coupons or
Receipts, however, are entitled to pursue their claims
also before a court in the country of the Issuer, in which
case German law shall likewise be applied. The Issuer
hereby expressly submits to the jurisdiction of the aforementioned courts. The German courts shall have exclusive jurisdiction over the annulment of lost or destroyed Notes.
Gerichtsstand für alle Rechtsstreitigkeiten, die sich aus
den oder in Verbindung mit den Teilschuldverschreibungen, Rückzahlungsscheinen und Zinsscheinen ergeben, ist Düsseldorf. Die Inhaber von Teilschuldverschreibungen, Zinsscheinen oder Rückzahlungsscheinen sind jedoch berechtigt, ihre Ansprüche auch vor
einem Gericht des Landes der Emittentin zu verfolgen,
wobei gleichfalls deutsches Recht angewendet werden
soll. Die Emittentin unterwirft sich hiermit ausdrücklich
der Zuständigkeit der vorerwähnten Gerichte. Die deutschen Gerichte haben die ausschließliche Zuständigkeit
für die Kraftloserklärung abhanden gekommener oder
vernichteter Teilschuldverschreibungen.
(c) Place of Performance
(c) Erfüllungsort
The place of performance shall be Düsseldorf.
Erfüllungsort ist Düsseldorf.
(d) Service of Process
(d) Prozeßrechtliche Zustellung
Each of WestLB Finance Curaçao N.V. and WestLB
Finance Netherlands B.V. hereby appoints WestLB AG
at its head office at Herzogstrasse 15, 40217 Düsseldorf,
as its agent to receive service of process in any proceedings in the Federal Republic of Germany.
Die WestLB Finance Curaçao N.V. und die WestLB Finance Netherlands B.V. ernennen hiermit die Hauptniederlassung der WestLB AG, Herzogstraße 15, 40217
Düsseldorf, zu ihrem Bevollmächtigten für die Entgegennahme prozeßrechtlicher Zustellungen bei allen
Rechtsstreitigkeiten in der Bundesrepublik Deutschland.
(e) Enforcement
(e) Durchsetzung von Rechten
Any Noteholder who holds through a Relevant Clearing
System may in any proceedings against the Issuer or to
which such Noteholder and the Issuer are parties protect and enforce in his own name his rights arising
Jeder Inhaber von Teilschuldverschreibungen, der die
Teilschuldverschreibungen über ein relevantes Abrechnungssystem hält, kann in jedem Rechtsstreit gegen
die Emittentin oder in jedem Rechtsstreit, in dem der
under the Notes on the basis of (i) either evidence that
he is the holder of the legal title to the relevant global
Note or definitive Notes held in such Relevant Clearing
System or a statement issued by the Custodian with
whom such Noteholder maintains a securities account
in respect of the Notes (a) stating the full name and
address of the Noteholder, (b) specifying the aggregate
principal amount of the Notes credited to such securities account on the date of such statement and (c) confirming that the Notes so credited to such securities
account have been blocked in the name of the Noteholder from which they will be unblocked only upon
instructions from such Noteholder to such effect,
together with written notice to the Issuer (or any person
lawfully acting on behalf of such Issuer or in its place),
and bearing an acknowledgement of the Relevant Clearing System and (ii) a copy of such global Note or
definitive Notes certified as being a true copy by a duly
authorised officer of the Relevant Clearing System or
the common depositary (if any), without the need for
production in such proceedings of the actual records or
the global Note or definitive Notes. For the purposes of
the foregoing, “Custodian” means any bank or other
financial institution of recognised standing authorised
to engage in securities custody business with which the
Noteholder maintains a securities account in respect of
the Notes and includes the Relevant Clearing System.
Inhaber von Teilschuldverschreibungen und die Emittentin Partei sind, seine Rechte aus den Teilschuldverschreibungen im eigenen Namen auf der Grundlage
wahrnehmen und durchsetzen, daß er (i) entweder beweist, daß er der Inhaber eines uneingeschränkten Eigentumsrechts an der betreffenden Global-Teilschuldverschreibung oder den betreffenden effektiven Teilschuldverschreibungen, die in dem relevanten Abrechnungssystem verwahrt werden, ist oder eine Bestätigung der Depotbank, bei der der Inhaber von Teilschuldverschreibungen ein Wertpapierkonto unterhält,
beibringt, und in der in bezug auf die Teilschuldverschreibungen (a) der vollständige Name und die vollständige Adresse des Inhabers von Teilschuldverschreibungen angegeben wird, (b) der Gesamtnennbetrag
der Teilschuldverschreibungen, die unter dem Datum
der Bestätigung auf dem Wertpapierkonto verbucht
sind, bezeichnet und (c) bestätigt wird, daß die auf
diesem Wertpapierkonto verbuchten Teilschuldverschreibungen im Namen des Inhabers von Teilschuldverschreibungen gesperrt sind und nur auf dementsprechende Anweisung des Inhabers von Teilschuldverschreibungen freigegeben werden, zusammen mit einer schriftlichen Mitteilung an die Emittentin (oder eine
Person, die rechtswirksam für die oder an Stelle der
Emittentin handelt) und einer Bestätigung des relevanten Abrechnungssystems und daß er (ii) eine durch
einen ordnungsgemäß authorisierten Angestellten des
relevanten Abrechnungssystems oder des etwaigen
Sammelverwahrers als wahre Kopie bestätigte Kopie
dieser Global-Teilschuldverschreibung oder der effektiven Teilschuldverschreibungen ohne Notwendigkeit der
Vorlage der tatsächlichen Unterlagen oder der GlobalTeilschuldverschreibung oder der effektiven Teilschuldverschreibungen vorlegt. Für die Zwecke des Vorstehenden bedeutet „Depotbank“ jede Bank oder jedes
andere Finanzinstitut von anerkanntem Ansehen, die/
das berechtigt ist, das Wertpapierverwahrgeschäft zu
betreiben, und bei der oder dem der Inhaber von Teilschuldverschreibungen ein Wertpapierkonto in bezug
auf die Teilschuldverschreibungen unterhält; der Begriff „Depotbank“ schließt das relevante Abrechnungssystem ein.
19. Severability
19. Salvatorische Klausel
Should any provision of these Terms and Conditions be or
become invalid in whole or in part, the other provisions shall
remain in force. The invalid provision shall be deemed
substituted by a valid provision which accomplishes as far
as legally possible the economic purposes of the invalid
provision.
Sollte eine Bestimmung dieser Anleihebedingungen ganz
oder teilweise rechtsunwirksam sein oder werden, so
bleiben die übrigen Bestimmungen wirksam. Anstelle der
rechtsunwirksamen Bestimmung gilt eine wirksame
Regelung, die den wirtschaftlichen Zwecken der rechtsunwirksamen Bestimmung soweit gesetzlich möglich Rechnung trägt.
20. Language
20. Sprache
These Terms and Conditions are written in the [English/
German] language and if so specified in the applicable
Pricing Supplement are translated into the [German/English] language. In that event, the applicable Pricing Supplement will specify whether the English or the German language version shall be legally binding and controlling in each
and every respect.
Diese Anleihebedingungen sind in [englischer/deutscher]
Sprache abgefaßt und werden in die [deutsche/englischer]
Sprache übersetzt, falls dieses im betreffenden Pricing Supplement festgelegt ist. Im letzteren Falle legt das betreffende Pricing Supplement fest, ob die englischsprachige oder
die deutschsprachige Version die in jeder Hinsicht rechtlich
bindende und maßgebliche ist.
55
Terms and Conditions
of the Loans
Darlehensbedingungen
The following are the Terms and Conditions of the Loans
which (as supplemented or modified in accordance with the
provisions of the applicable Pricing Supplement) will be
physically attached to the applicable Pricing Supplement
and the applicable Certificate of Indebtedness evidencing
the Loan.
Bei dem nachstehenden Text handelt es sich um die Darlehensbedingungen, die (durch die Bestimmungen des betreffenden Pricing Supplement ergänzt oder angepasst) dem
betreffenden Pricing Supplement und dem über das Darlehen ausgestellten Schuldschein beigeheftet werden.
The Loan is made by the Lender and accepted by WestLB
AG (the “Borrower”) with reference to an amended and
restated Agency Agreement (as amended and supplemented from time to time (the “Agency Agreement”) dated 30th
May, 2003 and made between, inter alia, the Borrower,
WestLB AG as agent and, if so specified in the applicable
Pricing Supplement, as calculation agent (in this capacity
the “Agent”, which expression shall include any successor
agent or other calculation agent specified in the applicable
Pricing Supplement).
Das Darlehen wird vom Kreditgeber an die WestLB AG (die
„Kreditnehmerin“) gemäß einem geänderten und neu gefaßten Agency Agreement (wie von Zeit zu Zeit geändert
und ergänzt (das „Agency Agreement“)) vom 30. Mai 2003
ausgezahlt, das u.a. zwischen der Kreditnehmerin und
der WestLB AG als Agent und, wenn dies im betreffenden
Pricing Supplement so festgelegt ist, als Berechnungsstelle
(in dieser Eigenschaft der „Agent“, wobei dieser Begriff
jegliche/n in dem betreffenden Pricing Supplement festgelegte/n Nachfolge-Agent oder andere Berechnungsstelle beinhaltet) abgeschlossen.
In these Conditions:
In diesen Bedingungen bedeutet
“Lender” means the creditor or, if the Loan has been assigned in part, each of the creditors entitled to rights arising
from the Loan evidenced by the Certificate(s) of
Indebtedness.
„Kreditgeber“ den Gläubiger oder, wenn das Darlehen teilweise abgetreten wurde, jeden der Gläubiger, der oder die
Rechtsansprüche aus dem Darlehen, über das der Schuldschein ausgestellt wurde, hat bzw. haben.
“Certificate of Indebtedness” means the certificate
evidencing the Loan.
„Schuldschein“ die Urkunde, die über dieses Darlehen ausgestellt wurde.
“Loan” means the assignable loan specified in the Pricing
Supplement attached to the Certificate of Indebtedness, or
if the Loan has been assigned in part, any such part of the
Loan.
„Darlehen“ das abtretbare Darlehen, das in dem dem
Schuldschein beigefügten Pricing Supplement spezifiziert
ist, oder wenn das Darlehen teilweise abgetreten wurde,
jeder solche Teil des Darlehens.
The Pricing Supplement for the Loan is attached hereto and
supplements these Terms and Conditions and may specify
other terms and conditions which shall, to the extent so
specified or to the extent inconsistent with these Terms and
Conditions, replace, supplement or modify these Terms and
Conditions for the purposes of the Loan. References herein
to the “applicable Pricing Supplement” are to the Pricing
Supplement attached hereto.
Das Pricing Supplement für das Darlehen ist diesen Darlehensbedingungen beigefügt und ergänzt diese Darlehensbedingungen; es kann andere Darlehensbedingungen festlegen, die, soweit darin bestimmt oder soweit sie im
Widerspruch zu diesen Darlehensbedingungen stehen, diese Darlehensbedingungen für die Zwecke des Darlehens
ersetzen, ergänzen oder anpassen. Bezugnahmen in diesem Dokument auf das „betreffende Pricing Supplement”
beziehen sich auf das hier anliegende Pricing Supplement.
Words and expressions defined in the applicable Pricing
Supplement shall have the same meanings where used in
these Terms and Conditions unless the context otherwise
requires or unless otherwise stated.
Worte und Begriffe, die im betreffenden Pricing Supplement definiert sind, sollen, wenn sie in diesen Darlehensbedingungen verwendet werden, die gleiche Bedeutung
haben, falls nicht der Zusammenhang etwas anderes erfordert oder etwas anderes ausdrücklich angegeben ist.
1. Currency and Denomination
1. Währung und Nennbetrag
The Loan has been made by the Lender and accepted by the
Borrower on the Disbursement Date in the Specified
Currency in the Principal Amount.
Das Darlehen wurde am Auszahlungstag in der festgelegten
Währung in Höhe des Nennbetrags vom Kreditgeber an die
Kreditnehmerin ausgezahlt.
2. Form and Transfer
2. Form und Übertragung
The Certificate of Indebtedness evidencing the Loan shall
be executed on behalf of the Borrower by two authorised
representatives of the Borrower.
Der über dieses Darlehen ausgestellte Schuldschein wird
im Auftrag der Kreditnehmerin von zwei Bevollmächtigten
der Kreditnehmerin ausgefertigt.
The rights under the Loan pass by assignment. The rights
under the Loan may be assigned three times or any Additional Times specified in the applicable Pricing Supplement in
whole or in part upon due completion and execution of an
assignment, substantially in the form of assignment endorsed on the Certificate of Indebtedness. The Borrower will
issue a new Certificate of Indebtedness evidencing the assigned loan upon receipt of an assignment notification. Any
transfer of part only of the Loan is permitted only for the
Minimum Principal Amount specified in the applicable Pricing Supplement or an integral multiple thereof.
Die Rechte aus dem Darlehen werden durch Abtretung
übertragen. Sie können dreimal übertragen werden oder
soviele zusätzliche Male wie im betreffenden Pricing
Supplement angegeben, und zwar vollständig oder teilweise bei ordnungsgemäßer Ausfertigung und Unterzeichnung einer Abtretung, die im wesentlichen der auf der
Rückseite des Schuldscheins angegebenen Form entspricht.
Die Kreditnehmerin wird bei Erhalt einer Abtretungsmitteilung einen neuen Schuldschein über das abgetretene
Darlehen ausstellen. Jegliche Übertragung lediglich eines
Teils des Darlehens ist lediglich in Höhe des im betreffen-
56
den Pricing Supplement festgelegten Mindestnennbetrags
oder eines ganzzahligen Vielfachen davon erlaubt.
The assignment shall be notified by the assignor in writing
to the Borrower without undue delay by delivery of an
original executed engrossment of the assignment. The Borrower will confirm the assigment to the assignor and the
assignee.
Die Abtretung ist der Kreditnehmerin durch den Abtretenden unverzüglich durch Übergabe einer Originalausfertigung der Abtretung schriftlich mitzuteilen. Die Kreditnehmerin wird dem Abtretenden und dem Abtretungsempfänger die Abtretung bestätigen.
If the Borrower receives the declaration of assignment later
than 15 days prior to the due date for any payment
of principal or interest (if any), payment to the assignor shall
release the Borrower from its obligations, and the assignee
shall have no further rights in respect of such payment
against the Borrower.
Erhält die Kreditnehmerin die Abtretungserklärung später
als 15 Tage vor dem Fälligkeitstag für eine Zahlung von
Kapital oder (gegebenenfalls) Zinsen, so befreit die Zahlung an den Abtretenden die Kreditnehmerin von ihren
Verpflichtungen, und der Abtretungsempfänger hat keine
weiteren Ansprüche in Hinblick auf eine solche Zahlung
gegen die Kreditnehmerin.
Failure by the assignor to notify the Borrower of an assignment shall not affect the validity of the assignment, but
payment under the Certificate of Indebtedness to the
assignor shall release the Borrower from its obligations,
and the assignee shall have no further rights in respect of
any such payment against the Borrower.
Die Unterlassung seitens des Abtretenden, der Kreditnehmerin eine Abtretung bekanntzumachen, berührt nicht die
Gültigkeit der Abtretung, jedoch befreit eine Zahlung unter
dem Schuldschein an den Abtretenden die Kreditnehmerin
von ihren Verpflichtungen, und der Abtregungsempfänger
hat keine weiteren Ansprüche in Hinblick auf eine solche
Zahlung gegen die Kreditnehmerin.
The applicable Pricing Supplement may specify alternative
arrangements for the payment of interest or instalments of
principal.
Im betreffenden Pricing Supplement können alternative Vereinbarungen in Hinblick auf die Zahlung von Zinsen oder
Tilgungsbeträgen festgelegt werden.
The Loan may be a Fixed Rate Loan, a Floating Rate Loan,
a Zero Coupon Loan, an Indexed Interest Loan, an IndexLinked Redemption Amount Loan, a Credit Linked Loan, a
Dual Currency Loan or an Instalment Loan or a combination
of any of the foregoing, depending upon the Interest/
Payment Basis shown in the applicable Pricing Supplement,
or such other type of Loan as indicated in the applicable
Pricing Supplement. The Loan is also either a Subordinated
Loan or a Senior Loan, as indicated in the applicable Pricing
Supplement.
Das Darlehen kann ein festverzinsliches Darlehen, ein
variabel verzinsliches Darlehen, ein Nullkupon-Darlehen,
ein Darlehen mit indexierter Verzinsung, ein Darlehen mit
indexiertem Rückzahlungsbetrag, ein an ein bestimmtes
Kreditrisiko gebundenes Darlehen, ein Doppelwährungsdarlehen oder ein in Raten rückzahlbares Darlehen oder
eine Kombination aus den vorgenannten Darlehen sein, je
nach der im betreffenden Pricing Supplement angegebenen
Zins-/Zahlungsgrundlage, oder eine andere Art von Darlehen, wie sie im betreffenden Pricing Supplement angegeben
ist. Das Darlehen ist zudem entweder ein nachrangiges
Darlehen oder ein nicht nachrangiges Darlehen, wie im
betreffenden Pricing Supplement angegeben.
In the case of a Zero Coupon Loan, references to interest
(other than in relation to interest due after the Maturity
Date) in these Terms and Conditions are not applicable.
Im Falle eines Nullkupon-Darlehens gelten Bezugnahmen
auf Zinsen (bei denen es sich nicht um Bezugnahmen auf
Zinsen, die nach dem Fälligkeitstermin fällig sind, handelt),
in diesen Darlehensbedingungen nicht.
3. Status of Loan
3. Status des Darlehens
(a) In the case of a Senior Loan
(a) Im Falle eines nicht nachrangigen Darlehens:
The Senior Loan is a direct, unconditional, unsecured
and unsubordinated obligation of the Borrower and
ranks pari passu with all other unsecured and unsubordinated obligations (save for obligations having statutory priority) of the Borrower.
Das nicht nachrangige Darlehen ist eine direkte, unbedingte, unbesicherte und nicht nachrangige Verbindlichkeit der Kreditnehmerin und steht im gleichen Rang
mit allen anderen unbesicherten und nicht nachrangigen Verbindlichkeiten (ausgenommen gesetzlich bevorrechtigte Verbindlichkeiten) der Kreditnehmerin.
(b) In the case of a Subordinated Loan
(b) Im Falle eines nachrangigen Darlehens:
(i) The Subordinated Loan will constitute a direct,
unconditional, unsecured and subordinated obligation of the Borrower and will rank pari passu with
any other unsecured subordinated obligations of
the Borrower.
(i) Das nachrangige Darlehen ist eine direkte, unbedingte, unbesicherte und nachrangige Verbindlichkeit der Kreditnehmerin und steht im gleichen
Rang mit allen anderen unbesicherten, nachrangigen Verbindlichkeiten der Kreditnehmerin.
(ii) The claims arising from the Subordinated Loan
with respect to the principal amount (the “Principal
Claims”) are subordinated in the event of insolvency
proceedings over the assets of or liquidation of the
Borrower to the claims of all other creditors of the
Borrower which are not also subordinated and, in
any such event, payment of the principal amount of
the Subordinated Loan, will not be made until all
existing claims against the Borrower, which are not
subordinated, have been satisfied. The right to setoff Principal Claims against claims of the Borrower
shall be excluded. No contractual security is or will
(ii) Die Forderungen aus dem nachrangigen Darlehen hinsichtlich des Nennbetrags (die „Hauptforderungen“) sind im Falle des Insolvenzverfahrens über das Vermögen und der Liquidation der
Kreditnehmerin den Forderungen aller anderen
Gläubiger der Kreditnehmerin, die nicht ebenfalls
nachrangig sind, nachgeordnet; in einem derartigen Fall erfolgt die Zahlung des Nennbetrags des
nachrangigen Darlehens erst, nachdem alle bestehenden nicht nachrangigen Forderungen gegen
die Kreditnehmerin befriedigt worden sind. Das
Recht zur Aufrechnung von Hauptforderungen ge-
57
be provided for the Principal Claims and any such
contractual security that may have been provided in
the past or will be provided in the future by the
Borrower or any third party shall not secure the
Principal Claims.
gen Forderungen der Kreditnehmerin wird ausgeschlossen. Derzeit oder in Zukunft wird keine vertragliche Sicherheit für die Hauptforderungen gewährt; irgendeine derartige vertragliche Sicherheit,
die von der Kreditnehmerin oder einem Dritten in
der Vergangenheit gewährt worden ist oder in
Zukunft gewährt werden wird, besichert nicht die
Hauptforderungen.
(iii) Subsequently the subordination provided for in
paragraph (i) cannot be restricted nor (subject as
provided in Condition 6(b)) can the Subordinated
Loan be redeemed prior to its stated maturity. In
accordance with § 10 paragraph (5a) of the Kreditwesengesetz (the German Banking Act), a pre-payment of the principal amount of the Subordinated
Loan must be refunded to the Borrower notwithstanding any agreement to the contrary, unless any
of the statutorily defined exceptions is applicable
(liquidation of the Borrower or replacement of the
principal amount of the Subordinated Loan by other
capital of at least equal status within the meaning of
the German Banking Act).
(iii) Der in Absatz (i) geregelte Nachrang kann nicht
nachträglich beschränkt werden; das nachrangige
Darlehen kann (vorbehaltlich der Regelungen in
Nr. 6(b)) nicht vor seiner angegebenen Fälligkeit
getilgt werden. Gemäß § 10 Absatz (5a) Kreditwesengesetz ist eine vorzeitige Rückzahlung des
Nennbetrags des nachrangigen Darlehens der
Kreditnehmerin ohne Rücksicht auf entgegenstehende Vereinbarungen zurückzugewähren,
sofern nicht eine der gesetzlich vorgesehenen Ausnahmen zutrifft (Liquidation der Kreditnehmerin
oder Ersetzung des Nennbetrags des nachrangigen
Darlehens durch Einzahlung anderen, zumindest
gleichwertigen Kapitals im Sinne des Kreditwesengesetzes).
4. Interest
4. Verzinsung
(a) Interest on a Fixed Rate Loan
(a) Verzinsung eines festverzinslichen Darlehens
The Fixed Rate Loan bears interest on its Principal Amount
from (and including) the Interest Commencement Date specified in the applicable Pricing Supplement at the rate(s) per
annum equal to the Fixed Rate(s) of Interest so specified to
(but excluding) the Maturity Date payable in arrear on the
Fixed Interest Date(s) in each year and on the Maturity Date
so specified if that does not fall on a Fixed Interest Date. The
first payment of interest will be made on the Fixed Interest
Date next following the Interest Commencement Date and,
if the first anniversary of the Interest Commencement Date
is not a Fixed Interest Date, will amount to the Initial Broken
Amount specified in the applicable Pricing Supplement. If
the Maturity Date is not a Fixed Interest Date, interest from
(and including) the preceding Fixed Interest Date (or the
Interest Commencement Date, as the case may be) to (but
excluding) the Maturity Date will amount to the Final Broken Amount specified in the applicable Pricing Supplement.
Jedes festverzinsliche Darlehen ist auf der Grundlage seines
Nennbetrags zu verzinsen, und zwar ab dem im betreffenden
Pricing Supplement genannten ersten Zinslauftag (einschließlich), mit einem Jahreszinssatz entsprechend dem/
den festgesetzten Festzinssatz/-sätzen für eine Laufzeit bis
zum Endfälligkeitstermin (ausschließlich); die Zinsen sind
nachträglich an dem (den) Festzinstermin(en) eines jeden
Jahres und am festgelegten Endfälligkeitstermin zahlbar,
wenn dieser nicht auf einen Festzinstermin fällt. Die erste
Zinszahlung erfolgt an dem dem ersten Zinslauftag
folgenden Festzinstermin und, wenn der erste Jahrestag
des Datums des ersten Zinslauftages kein Festzinstermin
ist, in Höhe des im betreffenden Pricing Supplement bestimmten anfänglichen unregelmäßigen Kuponbetrages.
Wenn der Endfälligkeitstermin nicht mit einem Festzinstermin zusammenfällt, erfolgt die letzte Zinszahlung am Endfälligkeitstermin in Höhe des im betreffenden Pricing Supplement bestimmten letzten unregelmäßigen Kuponbetrages für den Zeitraum vom vorhergehenden Festzinstermin
(oder gegebenenfalls vom ersten Zinslauftag) (einschließlich) bis zum Endfälligkeitstermin (ausschließlich).
If interest is required to be calculated for a period ending
other than on a Fixed Interest Date, such interest shall be
calculated by applying the Fixed Rate to the Principal
Amount, multiplying such sum by the applicable Day Count
Fraction, and rounding the resultant figure to the nearest
sub-unit of the relevant Specified Currency, half of any such
sub-unit being rounded upwards or otherwise in accordance with applicable market convention.
Wenn Zinsen für einen nicht an einem Festzinstermin
endenden Zeitraum zu berechnen sind, erfolgt die Berechnung durch Anwendung des Festzinssatzes auf den Nennbetrag, Multiplikation dieser Summe mit dem betreffenden
Zinstagequotienten und Rundung des Ergebnisses auf die
nächste Untereinheit der betreffenden festgelegten Währung, wobei eine halbe Untereinheit aufgerundet wird oder
die Rundung ansonsten gemäß der anwendbaren Marktkonvention erfolgt.
In this Condition 4(a):
In dieser Bedingung 4(a) bedeutet
“Day Count Fraction” means, in respect of the calculation of
an amount of interest in accordance with this Condition
4(a):
„Zinstagequotient” in bezug auf die Berechnung eines Zinsbetrags gemäß dieser Bedingung 4(a):
(i) if “Actual/Actual (ISMA)” is specified in the applicable Pricing Supplement:
(i) wenn in dem betreffenden Pricing Supplement „Actual/Actual (ISMA)“ festgelegt ist:
(a) in the case of Fixed Rate Loan where the number of days in the relevant period from (and including) the most recent Fixed Interest Date (or, if
none, the Interest Commencement Date) to (but
excluding) the relevant payment date (the “Accrual
Period”) is equal to or shorter than the Determination Period during which the Accrual Period ends, the
number of days in such Accrual Period divided by
the product of (1) the number of days in such
Determination Period and (2) the number of
(a) im Fall eines festverzinslichen Darlehens, bei
dem die Anzahl von Tagen in der betreffenden
Periode ab dem letzten Festzinstermin (oder,
wenn es keinen solchen gibt, ab dem ersten
Zinslauftag (jeweils einschließlich desselben))
bis zum betreffenden Zahlungstag (ausschließlich desselben) (die „Zinslaufperiode“) ebenso
lang wie oder kürzer als die Festsetzungsperiode ist, während der die Zinslaufperiode endet,
die Anzahl von Tagen in der betreffenden Zins-
58
Determination Dates (as specified in the applicable
Pricing Supplement) that would occur in one
calendar year; or
laufperiode geteilt durch das Produkt (1) der
Anzahl der Tage in dieser Festsetzungsperiode
und (2) der Anzahl der in ein Kalenderjahr fallenden Festsetzungstage (wie im betreffenden
Pricing Supplement definiert); oder
(b) in the case of Fixed Rate Loan where the Accrual
Period is longer than the Determination Period during which the Accrual Period ends, the sum of:
(b) im Fall eines festverzinslichen Darlehens, bei
dem die Zinslaufperiode länger ist als die Festsetzungsperiode, während der die Zinslaufperiode endet, die Summe
falling in the Determination Period in which the
Accrual Period begins divided by the product of
(x) the number of days in such Determination
Period and (y) the number of Determination
Dates (as specified in the applicable Pricing Supplement) that would occur in one calendar year;
and
die in die Festsetzungsperiode fallen, in welcher die Zinslaufperiode beginnt, geteilt
durch das Produkt (x) der Anzahl der Tage in
dieser Festsetzungsperiode und (y) der Anzahl der in ein Kalenderjahr fallenden Festsetzungstage (wie im betreffenden Pricing
Supplement definiert); und
falling in the next Determination Period divided
by the product of (x) the number of days in such
Determination Period and (y) the number of
Determination Dates that would occur in one
calendar year; and
die in die nächste Festsetzungsperiode fallen, geteilt durch das Produkt (x) der Anzahl
der Tage in dieser Festsetzungsperiode und
(y) der Anzahl der in ein Kalenderjahr fallenden Festsetzungstage; und
(ii) if “30/360” is specified in the applicable Pricing
Supplement, the number of days in the period from and
including the most recent Fixed Interest Date (or, if
none, the Interest Commencement Date) to but excluding the relevant payment date (such number of days
being calculated on the basis of 12 30-day months)
divided by 360;
„30/360“ festgelegt ist, die Anzahl von Tagen in der
Periode ab dem letzten Festzinstermin (oder, wenn es
keinen solchen gibt, ab dem ersten Zinslauftag) (jeweils
einschließlich desselben) bis zum betreffenden Zahlungstag (ausschließlich desselben) (wobei die Zahl der
Tage auf der Basis von 12 Monaten zu jeweils
30 Tagen berechnet wird), geteilt durch 360;
“Determination Period” means the period from (and including) a Determination Date to (but excluding) the next
Determination Date; and
„Festsetzungsperiode“ die Periode ab einem Festsetzungstag (einschließlich desselben) bis zum nächsten Festsetzungstag (ausschließlich desselben).
“sub-unit” means with respect to any currency other than
euro, the lowest amount of such currency that is available as
legal tender in the country of such currency and, with
respect to euro, means one cent.
„Untereinheit“ in bezug jede andere Währung als den Euro
den niedrigsten Betrag dieser Währung, der in dem Land
der betreffenden Währung als gesetzliches Zahlungsmittel
zur Verfügung steht, und in bezug auf den Euro einen Cent.
(b) Interest on a Floating Rate Loan
(b) Verzinsung eines variabel verzinslichen Darlehens
(i) Interest Payment Dates
(i) Zinstermine
The Floating Rate Loan bears interest on its Principal
Amount from (and including) the Interest Commencement Date specified in the applicable Pricing Supplement to (but excluding) the next following Interest Payment Date at the rate equal to the Rate of Interest
payable in arrear on either:
Das variabel verzinsliche Darlehen ist auf der Grundlage seines Nennbetrags zu verzinsen, und zwar ab dem
im betreffenden Pricing Supplement genannten ersten
Zinslauftag (einschließlich) mit einem dem Zinssatz entsprechenden Satz für die Periode bis zu (aber ausschließlich) dem nächstfolgenden Zinstermin, zahlbar
nachträglich entweder
(A) the Interest Payment Date(s) in each year; or
(A) am (an den) Zinstermin(en) eines jeden Jahres;
oder
(B) if no express Interest Payment Date(s) is/are specified in the applicable Pricing Supplement, each date
(each an “Interest Payment Date”) which falls the number of months or other period specified as the Specified
Period in the applicable Pricing Supplement after the
preceding Interest Payment Date or, in the case of the
first Interest Payment Date, after the Interest Commencement Date.
(B) falls im betreffenden Pricing Supplement kein(e)
Zinstermin(e) spezifiziert ist (sind), an jedem Termin
(jeder ein „Zinstermin”), der nach einer Anzahl von
Monaten oder solcher Periode, die als Festgelegte
Periode im Pricing Supplement festgelegt wurde, dem
vorhergehenden Zinstermin oder, im Falle des ersten
Zinstermines, dem ersten Zinslauftag folgt.
Such interest will be payable in respect of each Interest
Period (which expression shall, as used herein, mean the
period from (and including) an Interest Payment Date (or
the Interest Commencement Date) to (but excluding) the
next (or first) Interest Payment Date).
Dieser Zins ist für jede Zinsperiode zu zahlen, wobei unter
dem Begriff Zinsperiode, so wie er hier gebraucht wird, der
Zeitraum von (und einschließlich) einem Zinstermin (oder
ersten Zinslauftag) bis (jedoch ausschließlich) dem nächsten (oder ersten) Zinstermin zu verstehen ist.
If any Interest Payment Date (or other date) which is specified in the applicable Pricing Supplement to be subject to
adjustment in accordance with a business day convention
would otherwise fall on a day which is not a Business Day,
then, if the business day convention specified is:
Sofern ein Zinstermin (oder sonstiger Termin), der in dem
betreffenden Pricing Supplement als unter dem Vorbehalt
der Anpassung entsprechend einer Geschäftstagskonvention spezifiziert ist, ansonsten auf einen Tag fiele, der kein
Geschäftstag ist, wird, falls die festgelegte Geschäftstagskonvention die Konvention:
59
(1) the Floating Rate Convention (in any case where
Specified Periods are specified in accordance with Condition 4(b)(i)(B) above), such Interest Payment Date (or
other date) shall be postponed to the next day which is
a Business Day unless it would thereby fall into the next
calendar month, in which event (A) such Interest Payment Date (or other date) shall be brought forward to
the immediately preceding Business Day and (B) each
subsequent Interest Payment Date (or other date) shall
be the last Business Day in the month which falls the
number of months or other period specified as the Specified Period in the applicable Pricing Supplement after
the preceding applicable Interest Payment Date (or other
date) occured; or
(1) „Variabler Zinssatz Konvention” (oder „Floating Rate
Convention”) ist (in jedem Fall, in dem Festgelegte Perioden gemäß Nr. 4 (b) (i) (B) bestimmt werden), dieser Zinstermin (oder sonstige Termin) auf den folgenden Tag, der ein Geschäftstag ist, verschoben, es sei
denn, er würde dadurch in den nächsten Kalendermonat fallen; in diesem Falle ist (A) der Zinstermin (oder
sonstige Termin) auf den unmittelbar vorhergehenden
Geschäftstag vorverlegt und (B) jeder folgende Zinstermin (oder sonstige Termin) der letzte Geschäftstag des
Monats, der nach der Anzahl von Monaten oder solcher
Periode, die als Festgelegte Periode im betreffenden
Pricing Supplement festgelegt wurde, dem vorhergehenden anwendbaren Zinstermin (oder sonstigen
Termin) folgt; oder
(2) the Following Business Day Convention, such Interest
Payment Date (or other date) shall be postponed to the
next day which is a Business Day; or
(2) „folgender Geschäftstag” (oder „Following Business
Day Convention”) ist, dieser Zinstermin (oder sonstige
Termin) auf den folgenden Tag, der ein Geschäftstag ist,
verschoben; oder
(3) the Modified Following Business Day Convention,
such Interest Payment Date (or other date) shall be
postponed to the next day which is a Business Day
unless it would thereby fall into the next calendar month,
in which event such Interest Payment Date (or other
date) shall be brought forward to the immediately preceding Business Day; or
(3) „folgender Geschäftstag (Modifiziert)” (oder
„Modified Following Business Day Convention”) ist,
dieser Zinstermin (oder sonstige Termin) auf den folgenden Tag, der ein Geschäftstag ist, verschoben, es sei
denn, er würde dadurch in den nächsten Kalendermonat fallen; in diesem Falle wird der Zinstermin (oder
Geschäftstag vorgezogen; oder
(4) the Preceding Business Day Convention, such
Interest Payment Date (or other date) shall be brought
forward to the immediately preceding Business Day.
(4) „vorausgehender Geschäftstag” (oder „Preceding
Business Day Convention”) ist, dieser Zinstermin (oder
Geschäftstag vorgezogen.
In this Condition, “Business Day” means a day which is
both:
In dieser Bestimmung bedeutet „Geschäftstag” einen Tag,
der beides ist:
(A) a day on which commercial banks and foreign
exchange markets settle payments in Düsseldorf
and/or any other place as is specified in the applicable
Pricing Supplement (each an “Additional Business
Centre”); and
(A) ein Tag, an dem Geschäftsbanken und Devisenmärkte in Düsseldorf und/oder an einem anderen in
dem betreffenden Pricing Supplement bestimmten Ort
(jeder ein „zusätzliches Finanzzentrum”) Zahlungen abwickeln; und
(B) either (1) in relation to interest payable in a Specified Currency other than euro, a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including
dealing in foreign exchange and foreign currency deposits) in the principal financial centre of the country of the
relevant Specified Currency (if other than Düsseldorf
and/or any Additional Business Centre and which, if the
Specified Currency is Australian dollars or New Zealand
dollars, shall be Sydney and Auckland respectively) or
(2) in relation to any sum payable in euro, a day on
which the Trans-European Automated Real-Time Gross
Settlement Express Transfer (TARGET) System (the
“TARGET System”) is open.
(B) entweder (1) in bezug auf Zinszahlungen in einer
anderen festgelegten Währung als Euro ein Tag, an dem
Geschäftsbanken und Devisenmärkte Zahlungen in dem
Hauptfinanzzentrum des Landes der betreffenden festgelegten Währung (das, falls dies nicht Düsseldorf und/
oder ein zusätzliches Finanzzentrum ist, im Falle, daß
die festgelegte Währung der Australische oder Neuseeländische Dollar ist, Sydney bzw. Auckland sein soll)
abwickeln und für allgemeine Geschäfte (einschließlich
des Handels in Devisen und Fremdwährungseinlagen)
geöffnet sind oder (2) in bezug auf irgendeine in Euro
zahlbare Summe ein Tag, an dem das Trans-European
Automated Real-Time gross Settlement Express Transfer (TARGET) System (das „TARGET System”) geöffnet
ist.
(ii) Rate of Interest
(ii) Zinssatz
The Rate of Interest payable from time to time in respect
of a Floating Rate Loan will be determined in the manner specified in the applicable Pricing Supplement.
Der Zinssatz, der jeweils auf das variabel verzinsliche
Darlehen zu zahlen ist, wird nach der im Pricing
Supplement festgelegten Weise bestimmt.
(iii) Screen Rate Determination
(iii) Bildschirmnotierung
(A) Where Screen Rate Determination is specified in the
applicable Pricing Supplement as the manner in which
the Rate of Interest is to be determined, the Rate of
Interest for each Interest Period will, subject as provided below, be either:
(A) Falls das betreffende Pricing Supplement Bildschirmnotierung als die Art, in der der Zinssatz bestimmt wird,
spezifiziert, ist der Zinssatz für jede Zinsperiode, vorbehaltlich der nachstehend genannten Bestimmungen, entweder:
(a) the offered quotation (if there is only one quotation
on the Relevant Screen Page); or
(a) die Angebotsquotierung (wenn nur eine Angebotsquotierung auf der relevanten Bildschirmseite angezeigt ist); oder
(b) the arithmetic mean (rounded if necessary to the
fourth decimal place, with 0.00005 being rounded
upwards) of the offered quotations,
(b) das arithmetische Mittel (falls erforderlich, aufoder
aufgerundet wird) der Angebotsquotierungen,
60
(expressed as a percentage rate per annum), for the
Reference Rate which appears or appear, as the case
may be, on the Relevant Screen Page as at 11.00 a.m.
London time (in the case of LIBOR) or 11.00 a.m. Brussels
time (in the case of EURIBOR) on the Interest Determination Date in question plus or minus (as specified in
the applicable Pricing Supplement) the Margin (if any),
all as determined by the Agent. If five or more such
offered quotations are available on the Relevant Screen
Page, the highest (or, if there is more than one such
highest quotation, one only of such Quotations) and the
lowest (or, if there is more than one such lowest quotation, one only of such quotations) shall be disregarded
by the Agent for the purpose of determining the arithmetic mean (rounded as provided above) of such offered quotations.
(ausgedrückt als Prozentsatz per annum) für den Referenzzinssatz, die auf der betreffenden Bildschirmseite
um 11.00 Uhr Londoner Zeit (im Fall von LIBOR) oder
11.00 Uhr Brüsseler Zeit (im Fall von EURIBOR) an dem
fraglichen Zinsfestsetzungstag angezeigt wird bzw. werden, plus oder minus (wie im Pricing Supplement spezifiziert) der Marge (falls eine solche vorgesehen ist),
wobei sämtliche Sätze vom Agent festgesetzt werden.
Wenn auf der relevanten Bildschirmseite fünf oder mehr
Angebotsquotierungen zur Verfügung stehen, ist der
höchste (oder, wenn mehr als ein höchster Satz erscheint, einer dieser Sätze) und der niedrigste Satz
(oder, wenn mehr als ein niedrigster Satz erscheint,
einer dieser Sätze) vom Agent für die Bestimmung des
arithmetischen Mittels (aufoder abgerundet, wie oben
angegeben) dieser Angebotsquotierungen außer acht
zu lassen.
(B) If the Relevant Screen Page is not available or if, in
the case of (a) above, no such quotation appears or, in
the case of (b) above, fewer than three such offered
quotations appear, in each case as at the time specified
in the preceding paragraph the Agent shall request the
Reference Banks (as defined below) to provide the Agent
with its offered quotation (expressed as a percentage
rate per annum) for deposits in the Specified Currency
for the relevant Specified Period to leading banks in the
London inter-bank market at approximately 11.00 a.m.
London time (if the Reference Rate is LIBOR) or to
leading banks in the Euro-zone (as defined below) interbank market at approximately 11.00 a.m. Brussels time
(if the Reference Rate is EURIBOR) on the Interest Determination Date in question. If two or more of the
Reference Banks provide the Agent with such offered
quotations, the Rate of Interest for such Interest Period
shall be the arithmetic mean (rounded if necessary to
the fourth decimal place with 0.00005 being rounded
upwards) of such offered quotations plus or minus (as
appropriate) the Margin (if any), all as determined by
the Agent.
(B) Für den Fall, daß jeweils zu dem im vorstehenden
Absatz genannten Zeitpunkt die relevante Bildschirmseite nicht verfügbar ist oder wenn, im Fall von (a) oben,
kein Satz angezeigt wird, oder wenn, im Fall von (b)
oben, weniger als drei solcher Angebotsquotierungen
angezeigt werden, wird der Agent die Referenzbanken
(wie nachstehend definiert) auffordern, ihm den Satz
(ausgedrückt als Prozentsatz per annum) mitzuteilen,
zu dem sie erstklassigen Banken im Londoner Interbankenmarkt gegen 11.00 Uhr Londoner Zeit (wenn der
Referenzzinssatz LIBOR ist) oder ertklassigen Banken
im Interbankenmarkt der Eurozone (wie nachfolgend
definiert) gegen 11.00 Uhr Brüsseler Zeit (wenn der
Referenzzinssatz EURIBOR ist) am fraglichen Zinsfestsetzungstag Einlagen in der festgelegten Währung für
die betreffende Festgelegte Periode anbieten. Geben
zwei oder mehr Referenzbanken dem Agent solche Sätze an, dann soll der Zinssatz für diese Zinsperiode das
arithmetische Mittel (falls erforderlich, aufoder abgerundet auf die vierte Dezimalstelle, wobei 0,00005 aufgerundet wird) dieser Angebotsquotierungen plus oder
minus (je nachdem) der Marge (falls eine solche vorgesehen ist) sein, wie jeweils vom Agent festgesetzt.
(C) If on any Interest Determination Date one only or
none of the Reference Banks provides the Agent with
such offered quotations as provided in the preceding
paragraph, the Rate of Interest for the relevant Interest
Period shall be the rate per annum which the Agent
determines as being the arithmetic mean (rounded if
necessary to the fourth decimal place, with 0.00005
being rounded upwards) of the rates, as communicated
to (and at the request of) the Agent by the Reference
Banks or any two or more of them, at which such banks
were offered, at approximately 11.00 a.m. London time
(if the Reference Rate is LIBOR) or 11.00 a.m. Brussels
time (if the Reference Rate is EURIBOR) on the relevant
Interest Determination Date, deposits in the Specified
Currency for the relevant Specified Period by leading
Rate is LIBOR) or to leading banks in the Euro-zone
inter-bank market (if the Reference Rate is EURIBOR)
plus or minus (as appropriate) the Margin (if any) or, if
fewer than two of the Reference Banks provide the
Agent with such offered rates, the offered rate for deposits in the Specified Currency for the relevant Specified
Period, or the arithmetic mean (rounded as provided
above) of the offered rates for deposits in the Specified
Currency for the relevant Specified Period, which, on
the relevant Interest Determination Date, any one or
more banks (which bank or banks is or are in the opinion of the Borrower and the Agent suitable for such
purpose) informs the Agent it is quoting to leading
Rate is LIBOR) or to leading banks in the Euro-zone
inter-bank market (if the Reference Rate is EURIBOR)
(or, as the case may be, the quotations of such bank or
banks to the Agent) plus or minus (as appropriate) the
Margin (if any), provided that, if the Rate of Interest
cannot be determined in accordance with the foregoing
provisions of this Condition 4(b)(iii)(C), the Rate of
Interest shall be determined as at the last preceding
Interest Determination Date (though substituting, where a different Margin is to be applied to the relevant
(C) Falls an einem Zinsfestsetzungstag nur eine oder
keine der Referenzbanken dem Agent solche Angebotsquotierungen, wie im vorstehenden Absatz beschrieben, mitteilt, dann soll der Zinssatz für die betreffende
Zinsperiode der Satz per annum sein, den der Agent als
das arithmetische Mittel (falls erforderlich, aufoder
aufgerundet wird) der Sätze feststellt, die ihm (auf seine
Anfrage hin) von den Referenzbanken oder mindestens
zwei der Referenzbanken als die Sätze mitgeteilt werden, zu denen ihnen gegen 11.00 Uhr Londoner Zeit
(wenn der Referenzzinssatz LIBOR ist) oder 11.00 Uhr
ist) am fraglichen Zinsfestsetzungstag Einlagen in der
Periode von erstklassigen Banken im Londoner Interbankenmarkt (wenn der Referenzzinssatz LIBOR ist)
oder im Interbankenmarkt der Eurozone (wenn der Referenzzinssatz EURIBOR ist) angeboten werden, plus
oder minus (je nachdem) der Marge (falls eine solche
vorgesehen ist). Falls weniger als zwei der Referenzbanken dem Agent solche Angebotssätze mitteilen, dann soll der Zinssatz für die betreffende Festgelegte Periode der Angebotssatz für Einlagen in der festgelegten Währung für die betreffende Festgelegte Periode
oder das arithmetische Mittel (gerundet wie oben beschrieben) der Angebotssätze für Einlagen in der festgelegten Währung für die betreffende Festgelegte Periode sein, den bzw. die eine oder mehrere Banken (die
nach Ansicht der Kreditnehmerin und des Agent für
diesen Zweck geeignet sind) dem Agent am Zinsfestsetzungstag als ihre Angebotsquotierung gegenüber
erstklassigen Banken im Londoner Interbankenmarkt
(wenn der Referenzzinssatz LIBOR ist) oder im Interbankenmarkt der Eurozone (wenn der Referenzzinssatz
EURIBOR ist) (bzw. gegenüber dem Agent) nennen,
plus oder minus (je nachdem) der Marge (falls eine
solche vorgesehen ist). Für den Fall, daß der Zinssatz
nicht wie in dieser Nr. 4 (b) (iii) (C) vorstehend beschrieben ermittelt werden kann, soll der Zinssatz wie am
61
62
Interest Period from that which applied to the last preceding Interest Period, the Margin relating to the relevant
Interest Period in place of the Margin relating to that last
preceding Interest Period).
unmittelbar vorhergehenden Zinsfestsetzungstag bestimmt werden (wobei jedoch – falls für die relevante
Zinsperiode eine andere Marge als für die unmittelbar
vorhergehende Zinsperiode gilt – die Marge für die relevante Zinsperiode an die Stelle der Marge für die
vorhergehende Zinsperiode tritt).
(D) In this Condition 4(b):
(D) In dieser Bedingung Nr. 4 (b) bedeutet
“LIBOR” means the London inter-bank offered rate.
„LIBOR“ den Londoner Interbanken-Angebotssatz;
“EURIBOR” means the Euro-zone inter-bank offered
rate.
„EURIBOR“ den Interbanken-Angebotssatz in der Eurozone;
“Reference Banks” means, in the case of a determination of LIBOR, the principal London office of four major
banks in the London inter-bank market and, in the case
of a determination of EURIBOR, the principal Euro-zone
office of four major banks in the Euro-zone inter-bank
market, in each case selected by the Agent or as specified in the applicable Pricing Supplement.
„Referenzbanken” im Fall einer Festsetzung von LIBOR
die Londoner Hauptgeschäftsstellen von vier führenden
Banken im Londoner Interbankenmarkt und im Fall einer Festsetzung von EURIBOR die Hauptgeschäftsstellen in der Eurozone von vier führenden Banken im
Interbankenmarkt der Eurozone, wie jeweils vom Agent
ausgewählt oder im betreffenden Pricing Supplement
bestimmt;
“Euro-zone” means the region comprised of Member
States of the European Union that adopt the single
currency in accordance with the Treaty establishing the
European Community, as amended by the Treaty on
European Union.
„Eurozone“ die Region, die die Mitgliedsstaaten der
Europäischen Union umfaßt, welche die einheitliche
Währung gemäß dem Vertrag über die Errichtung der
Europäischen Gemeinschaft, abgeändert durch die Vertrag über die Europäische Union, einführen.
(E) If the Reference Rate from time to time in respect of
a Floating Rate Loan is specified in the applicable Pricing Supplement as being other than LIBOR or
EURIBOR, the Rate of Interest in respect of such Floating
Rate Loan will be determined as provided in the applicable Pricing Supplement.
(E) Wenn der im betreffenden Pricing Supplement angegebene für die variabel verzinslichen Teilschuldverschreibungen jeweils geltende Referenzzinssatz weder
LIBOR noch EURIBOR ist, erfolgt die Festsetzung des
Zinssatzes für dieses variabel verzinsliche Darlehen wie
in dem betreffenden Pricing Supplement angegeben.
(iv) Minimum and/or Maximum Rate of Interest
(iv) Mindest- und/oder Höchst-Zinssatz
If the applicable Pricing Supplement specifies a Minimum Interest Rate for any Interest Period, then the Rate
of Interest for such Interest Period shall in no event be
less than such Minimum Interest Rate and/or if it specifies a Maximum Rate of Interest for any Interest Period,
then the Rate of Interest for such Interest Period shall in
no event be greater than such Maximum Interest Rate.
Wenn das betreffende Pricing Supplement für eine Zinsperiode einen Mindest-Zinssatz vorsieht, darf der Zinssatz für diese Zinsperiode in keinem Fall diesen Mindest-Zinssatz unterschreiten, und/oder wenn dort für
eine Zinsperiode ein Höchst-Zinssatz aufgeführt wird,
darf der Zinssatz für diese Zinsperiode in keinem Fall
diesen Höchst-Zinssatz überschreiten.
(v) Determination of Rate of Interest and Calculation
of Interest Amount
(v) Bestimmung des Zinssatzes und Berechnung des
Zinsbetrags
The Agent will, at or as soon as practicable after each
time at which the Rate of Interest is to be determined,
determine the Rate of Interest and calculate the amount
of interest payable in respect of the Principal Amount
(or, if the Loan has been assigned in part, each part of
the Loan) (each an “Interest Amount”) for the relevant
Interest Period. Each Interest Amount shall be calculated by applying the Rate of Interest to the Principal
Amount (or, if the Loan has been assigned in part, each
part of the Loan), multiplying such sum by the applicable Day Count Fraction as specified in the applicable
Pricing Supplement, and rounding the resultant figure
to the lowest recognised unit of account in the relevant
Specified Currency, with a half of such lowest unit of
account being rounded upwards or otherwise in accordance with applicable market convention.
Der Agent wird zu oder baldmöglichst nach jedem Zeitpunkt, an dem der Zinssatz zu bestimmen ist, den Zinssatz bestimmen und den zahlbaren Zinsbetrag in bezug
auf den Nennbetrag (oder, wenn das Darlehen teilweise
abgetreten wurde, jeden Teil des Darlehens) (jeder ein
„Zinsbetrag”) für die betreffende Zinsperiode berechnen. Jeder Zinsbetrag wird ermittelt, indem der für die
betreffende Zinsperiode geltende Zinssatz auf den
Nennbetrag (oder, wenn das Darlehen teilweise abgetreten wurde, jeden Teil des Darlehens) angewendet
wird, diese Summe mit dem im Pricing Supplement als
anwendbar festgelegten Zinstagequotienten multipliziert und der resultierende Betrag auf die kleinste anerkannte Rechnungseinheit der betreffenden festgelegten
Währung aufoder abgerundet wird, wobei die Hälfte
dieser kleinsten Rechnungseinheit aufgerundet wird
oder die Rundung ansonsten gemäß der anwendbaren
Marktkonvention erfolgt.
“Day Count Fraction” means, in respect of the calculation of an amount of interest for any Interest Period:
„Zinstagequotient“ in bezug auf die Berechnung eines
Zinsbetrags für eine Zinsperiode bedeutet
(A) if “Actual/365” or “Actual/Actual (ISDA)” is specified in the applicable Pricing Supplement, the actual number of days in the Interest Period divided by
365 (or, if any portion of that Interest Period falls in
a leap year, the sum of (a) the actual number of days
in that portion of the Interest Period falling in a leap
year divided by 366 and (b) the actual number of
days in that portion of the Interest Period falling in a
non-leap year divided by 365);
(A) wenn in dem betreffenden Pricing Supplement
„Actual/365“ oder „Actual/Actual (ISDA)“ festgelegt ist, die tatsächliche Zahl der Tage der Zinsperiode dividiert durch 365 (oder, falls ein Teil der Zinsperiode in ein Schaltjahr fällt, die Summe (a) der
tatsächlichen Zahl der Tage in dem Teil der Zinsperiode, der in ein Schaltjahr fällt, geteilt durch 366,
und (b) der tatsächlichen Zahl der Tage in dem Teil
der Zinsperiode, der in ein Jahr, das kein Schaltjahr
ist, fällt, geteilt durch 365);
(B) if “Actual/365 (Fixed)” is specified in the applicable Pricing Supplement, the actual number of days
in the Interest Period divided by 365;
(B) wenn in dem betreffenden Pricing Supplement
„Actual/365 (Fixed)“ festgelegt ist, die tatsächliche
Zahl der Tage der Zinsperiode geteilt durch 365;
(C) if “Actual/365 (Sterling)” is specified in the
applicable Pricing Supplement, the actual number
of days in the Interest Period divided by 365 or, in
the case of an Interest Payment Date falling in a leap
year, 366;
(C) wenn in dem betreffenden Pricing Supplement
„Actual/365 (Sterling)“ festgelegt ist, die tatsächliche Zahl der Tage der Zinsperiode geteilt durch
365 oder – im Falle eines in ein Schaltjahr fallenden
Zinstermins – geteilt durch 366;
(D) if “Actual/360” is specified in the applicable
Pricing Supplement, the actual number of days in
the Interest Period divided by 360;
(D) wenn in dem betreffenden Pricing Supplement
„Actual/360“ festgelegt ist, die tatsächliche Zahl der
Tage der Zinsperiode geteilt durch 360;
(E) if “30/360”, “360/360” or “Bond Basis” is specified in the applicable Pricing Supplement, the
number of days in the Interest Period divided by 360
(the number of days to be calculated on the basis of
a year of 360 days with 12 30-day months (unless (a)
the last day of the Interest Period is the 31st day
of a month but the first day of the Interest Period
is a day other than the 30th or 31st day of a month,
in which case the month that includes that last
day shall not be considered to be shortened to a
30-day month, or (b) the last day of the Interest
Period is the last day of the month of February, in
which case the month of February shall not be considered to be lengthened to a 30-day month)); and
(E) wenn in dem betreffenden Pricing Supplement
„30/360“, „360/360“ oder „Bond Basis“ festgelegt
ist, die Zahl der Tage der Zinsperiode geteilt durch
360 (dabei ist die Zahl der Tage auf der Basis eines
jeweils 30 Tagen, zu berechnen (es sei denn, daß (a)
der letzte Tag der Zinsperiode der 31. Tag eines
Monats, der erste Tag der Zinsperiode jedoch nicht
der 30. oder 31. Tag eines Monats ist, in welchem
Fall der Monat, der diesen letzten Tag einschließt,
als nicht auf einen Monat zu 30 Tagen verkürzt gilt,
oder (b) der letzte Tag der Zinsperiode der letzte
Tag des Monats Februar ist, in welchem Fall der
Monat Februar als nicht auf einen Monat zu 30
Tagen verlängert gilt)); und
(F) if “30E/360” or “Eurobond Basis” is specified in
the applicable Pricing Supplement, the number of
days in the Interest Period divided by 360 (the number of days to be calculated on the basis of a year of
360 days with 12 30-day months, without regard to
the date of the first day or last day of the Interest
Period unless, in the case of an Interest Period ending on the Maturity Date, the Maturity Date is the
last day of the month of February, in which case the
month of February shall not be considered to be
lengthened to a 30-day month).
(F) wenn in dem betreffenden Pricing Supplement
„30E/360“ oder „Eurobond Basis“ festgelegt ist, die
Zahl der Tage der Zinsperiode geteilt durch 360
(dabei ist die Zahl der Tage auf der Basis eines
jeweils 30 Tagen, ohne Rücksicht auf das Datum des
ersten Tags oder des letzten Tags der Zinsperiode
zu berechnen, es sei denn, daß im Falle einer am
Endfälligkeitstermin endenden Zinsperiode der Endfälligkeitstermin der letzte Tag des Monats Februar
ist, in welchem Fall der Monat Februar als nicht auf
einen Monat zu 30 Tagen verlängert gilt).
(vi) Notification of Rate of Interest and Interest
Amount
(vi) Mitteilung des Zinssatzes und des Zinsbetrags
The Agent will cause the Rate of Interest and each
Interest Amount for each Interest Period and the relevant Interest Payment Date to be notified to the Borrower and for notice to be given to the Lender in accordance with Condition 13 as soon as possible after their
determination but in no event later than the fourth Düsseldorf Business Day (as defined in Condition 4(b))
thereafter. Each Interest Amount and Interest Payment
Date so notified may subsequently be amended by the
Agent (or appropriate alternative arrangements made
by way of adjustment) in the event of an extension or
shortening of the Interest Period without any publication being necessary with respect thereto.
Der Agent wird veranlassen, daß für jede Zinsperiode
der festgelegte Zinssatz, der Zinsbetrag sowie der
betreffende Zinstermin der Kreditnehmerin mitgeteilt
und in Übereinstimmung mit Nr. 13 baldmöglichst, aber
keinesfalls später als am vierten Geschäftstag in
Düsseldorf (wie in Nr. 4(b) definiert) nach der Festlegung dem Kreditgeber bekanntgemacht werden. Im
Fall einer Verlängerung oder Verkürzung der Zinsperiode können vom Agent der mitgeteilte Zinsbetrag
und der Zinstermin nachträglich angepaßt (oder im
Wege der Anpassung geeignete andere Maßnahmen
getroffen werden), ohne daß diesbezüglich eine Veröffentlichung nötig ist.
(c) Index-Linked Loan and Dual Currency Loan
(c) Indexiertes Darlehen und DoppelwährungsDarlehen
In the case of an Index-Linked Loan or a Dual Currency
Loan, if the rate or amount of interest falls to be terminated
by reference to an index and/or a formula or, as the case
may be, an exchange rate, the rate or amount of interest
payable shall be determined in the manner specified in the
applicable Pricing Supplement. In the case of an IndexLinked Interest Loan or a Dual Currency Loan which is also
a Floating Rate Loan where the rate or amount of interest
does not fall to be determined as provided in the immediately preceding sentence, the provisions of Condition 4(b)
shall apply, except where otherwise specified in the applicable Pricing Supplement.
Im Falle eines indexierten Darlehens oder DoppelwährungsDarlehens, bei dem der Zinssatz oder der Zinsbetrag in
bezug auf einen Index und/oder eine Formel oder gegebenenfalls in bezug auf einen Devisenkurs ermittelt werden, wird der Zinssatz oder der zu zahlende Zinsbetrag
gemäß dem im Pricing Supplement festgelegten Verfahren
ermittelt. Sofern es sich bei dem indexiert-verzinslichen
Darlehen oder Doppelwährungs-Darlehen zugleich um ein
variabel verzinsliches Darlehen handelt, bei dem der Zinssatz oder Zinsbetrag nicht wie im unmittelbar vorhergehenden Satz geregelt ermittelt wird, sollen die Bestimmungen
von Nr. 4(b) angewendet werden, es sei denn, das betreffende Pricing Supplement sieht etwas anderes vor.
63
(d) Credit Linked Loan
(d) An ein bestimmtes Kreditrisiko gebundenes
Darlehen
In the case of a Credit Linked Loan, if the amount of principal or interest falls to be determined by the value of underlying asset(s), the amount payable shall be determined in
the manner specified in the applicable Pricing Supplement.
Im Fall eines an ein bestimmtes Kreditrisiko gebundenen
Darlehens, bei dem der Kapital- oder Zinsbetrag in bezug
auf einen zugrundeliegenden Vermögenswert (bzw. in bezug
auf zugrundeliegende Vermögenswerte) ermittelt wird, wird
der zu zahlende Betrag gemäß dem im Pricing Supplement
festgelegten Verfahren ermittelt.
(e) Partly Paid Loan
(e) Teilzahlungs-Darlehen
In the case of a Partly Paid Loan (other than a Partly Paid
Loan which is a Zero Coupon Loan), interest will accrue as
aforesaid on the paid-up nominal amount of such Loan and/
or otherwise as specified in the applicable Pricing Supplement.
Im Fall eines Teilzahlungs-Darlehens (außer einem solchen,
das ein Nullkupon-Darlehen darstellt) erfolgt die Verzinsung wie vorstehend genannt auf den für dieses Darlehen
eingezahlten Betrag und/oder ansonsten wie im Pricing
Supplement spezifiziert.
(f) Accrual of Interest
(f) Zinslauf
The Loan (or in the case of the redemption of part only of the
Loan, that part only of the Loan) will cease to bear interest
(if any) from the due date for its redemption unless payment
of principal is withheld or refused. In such event, interest
will continue to accrue until the date on which all amounts
due in respect of the Loan (or in the case of the redemption
of part only of the Loan, that part only of the Loan) have been
paid.
Die Verzinsung (sofern eine solche vorgesehen ist) eines
Darlehens (oder – im Fall eines nur teilweise zurückgezahlten Darlehens – nur für diesen Teil des Darlehens) endet an
dem Tag, an dem dieses zur Rückzahlung fällig wird, außer
wenn die Rückzahlung des Darlehens unzulässig vorenthalten oder verweigert worden ist. Letzterenfalls verlängert
sich der Zinslauf bis zu dem Tag, an dem alle ausstehenden
Beträge im Zusammenhang mit dem Darlehen (oder – im
Fall eines nur teilweise zurückgezahlten Darlehens – nur für
diesen Teil des Darlehens) gezahlt worden sind.
5. Redenomination
5. Redenominierung
The applicable Pricing Supplement may provide that a Loan
may be redenominated in euro. If so, the wording of the
redenomination clause will be set out in full in the applicable
Pricing Supplement.
Das betreffende Pricing Supplement kann die Möglichkeit
der Umstellung eines Darlehens auf Euro vorsehen. Dabei
wird der volle Wortlaut der Redenominierungsklausel in
dem betreffenden Pricing Supplement aufgeführt.
6. Redemption
6. Rückzahlung
(a) At Maturity
(a) Rückzahlung bei Endfälligkeit
Unless previously redeemed as specified below, the Loan
will be redeemed by the Borrower at its Final Redemption
Amount specified in, or determined in the manner specified
in, the applicable Pricing Supplement in the relevant Specified Currency on the Maturity Date.
Soweit nicht vorher zurückgezahlt gemäß den nachfolgenden Ausführungen, wird das Darlehen von der Kreditnehmerin zu dem im betreffenden Pricing Supplement festgelegten oder auf die darin bestimmte Weise ermittelten
Rückzahlungsbetrag bei Endfälligkeit in der betreffenden
festgelegten Währung am Endfälligkeitstermin zurückgezahlt.
(b) Redemption for Tax Reasons
(b) Vorzeitige Rückzahlung aus Steuergründen
Unless otherwise specified in the applicable Pricing Supplement, the Loan may be redeemed at the option of the Borrower in whole, but not in part, at any time (in the case of a
Loan other than a Floating Rate Loan) or on any Interest
Payment Date (in the case of a Floating Rate Loan) on giving
not less than 30 nor more than 60 days’ notice to the Agent
and, in accordance with Condition 13, the Lender, if the
Borrower has or will become obliged to pay additional
amounts as provided or referred to in Condition 8 with
respect to the Borrower as a result of any change in, or
amendment to, the laws or regulations of the Federal
Republic of Germany or any political subdivision or any
authority thereof or therein having power to tax, or any
change in the application or official interpretation of such
laws or regulations which change or amendment becomes
effective on or after the Disbursement Date, provided that
no such notice of redemption shall be given earlier than 90
days prior to the earliest date on which the Borrower would
be obliged to pay such additonal amounts were a payment
in respect of the Loan then due.
Sofern in dem entsprechenden Pricing Supplement nichts
anderes vorgesehen ist, kann das Darlehen nach Wahl der
Kreditnehmerin insgesamt, aber nicht teilweise, jederzeit
(im Falle eines Darlehens, bei dem es sich nicht um ein
variabel verzinsliches Darlehen handelt) oder zu jedem Zinstermin (im Fall eines variabel verzinslichen Darlehens) nach
Erklärung einer Kündigung gegenüber dem Agent und gemäß Nr. 13 gegenüber dem Kreditgeber unter Einhaltung
einer Frist von mindestens 30 und höchstens 60 Tagen zurückgezahlt werden, wenn die Kreditnehmerin verpflichtet
ist oder sein wird, aufgrund einer Änderung der Gesetze
oder Verordnungen der Bundesrepublik Deutschland oder
einer ihrer Gebietskörperschaften oder einer ihrer zur Steuererhebung ermächtigten Behörden oder aufgrund einer
Änderung in der Anwendung oder offiziellen Auslegung
solcher Gesetze und Verordnungen, die am oder nach dem
Auszahlungstag in Kraft tritt, zusätzliche Beträge, wie in
Nr. 8 in bezug auf die Kreditnehmerin vorgesehen oder in
Bezug genommen, zu zahlen. Eine solche Erklärung darf
jedoch frühestens 90 Tage vor dem Termin erfolgen, zu dem
die Kreditnehmerin erstmals verpflichtet wäre, solche
zusätzlichen Beträge zu zahlen, wenn an diesem Termin
eine Zahlung in bezug auf das Darlehen fällig wäre.
The Loan redeemed pursuant to this Condition 6(b) will be
redeemed at its Early Redemption Amount referred to in
Das gemäß dieser Nr. 6(b) zurückgezahlte Darlehen wird
zu dem in Absatz (e) unten vorgesehenen Rückzahlungsbe-
64
paragraph (e) below together (if appropriate) with interest
accrued to (but excluding) the date of redemption.
trag bei vorzeitiger Rückzahlung zusammen mit Stückzinsen, die bis zum Rückzahlungstag (ausschließlich desselben) anfallen, zurückgezahlt.
(c) Redemption at the Option of the Borrower
(c) Rückzahlung nach Wahl der Kreditnehmerin
If the Borrower is specified in the applicable Pricing
Supplement as having an option to redeem, the Borrower
may, having (unless otherwise specified in the applicable
Pricing Supplement) given:
Wenn in dem betreffenden Pricing Supplement festgelegt
ist, daß die Kreditnehmerin ein Kündigungsrecht hat, kann
diese (sofern in dem betreffenden Pricing Supplement nichts
anderes vorgesehen ist):
(i) not less than 30 nor more than 60 days’ notice to the
Lender in accordance with Condition 13; and
(i) nach Erklärung einer Kündigung unter Einhaltung
einer Frist von mindestens 30 und höchstens 60 Tagen
gegenüber dem Kreditgeber gemäß Nr. 13; und
(ii) not less than 15 days before the giving of the notice
referred to in (i), notice to the Agent,
(ii) nach einer Kündigung durch Erklärung gegenüber
dem Agent spätestens 15 Tage vor der in (i) genannten
Kündigung
(both of which notices shall be irrevocable), redeem all or
part only of the Loan then outstanding on the Optional
Redemption Date(s) and at the Optional Redemption
Amount(s) specified in, or determined in the manner specified in, the applicable Pricing Supplement together, if
appropriate, with interest accrued to (but excluding) the
Optional Redemption Date(s). Any such redemption must
be of a Principal Amount equal to the Minimum Redemption
Amount or a Higher Redemption Amount, both as indicated
in the applicable Pricing Supplement.
(wobei die Erklärung in beiden Fällen unwiderruflich ist)
das dann nicht zurückgezahlte Darlehen ganz oder teilweise an dem/den wahlweisen Rückzahlungstermin(en) und
zu dem/den wahlweisen Rückzahlungsbetrag bzw.
-beträgen, die in dem Pricing Supplement angegeben sind
oder in der dort angegebenen Form festgesetzt werden,
falls erforderlich, zusammen mit den bis zu dem/den wahlweisen Rückzahlungstermin(en) (jedoch nicht einschließlich dieses Termins bzw. dieser Termine) angefallenen
Stückzinsen zurückzahlen. Eine solche Rückzahlung muß in
Höhe eines Nennbetrages erfolgen, der dem Mindest-Rückzahlungsbetrag oder einem höheren Rückzahlungsbetrag
gemäß der Festlegung in dem Pricing Supplement entspricht.
(d) Redemption of a Senior Loan only at the Option of the
Lender
(d) Rückzahlung nur eines nicht nachrangigen Darlehens
nach Wahl des Kreditgebers
If the Lender is specified in the applicable Pricing Supplement as having an option to require the Borrower to redeem,
upon the Lender of a Senior Loan giving to the Borrower not
less than 30 nor more than 60 days’ notice or such other
period of notice as is specified in the applicable Pricing
Supplement (which notice shall be irrevocable) the Borrower will, upon the expiry of such notice, redeem, subject to,
and in accordance with, the terms specified in the applicable Pricing Supplement, in whole the Senior Loan (or, if the
Senior Loan has been assigned in part, such part of the
Senior Loan assigned to the Lender) on the Optional Redemption Date and at the Optional Redemption Amount
specified in, or determined in the manner specified in, the
applicable Pricing Supplement together, if appropriate, with
interest accrued to (but excluding) the Optional Redemption Date.
Wenn im betreffenden Pricing Supplement festgelegt ist,
daß der Kreditgeber das Recht hat, durch Erklärung einer
Kündigung (die unwiderruflich ist) gegenüber der Kreditnehmerin mit einer Frist von mindestens 30 und höchstens
60 Tagen oder mit einer anderen im Pricing Supplement
festgelegten Frist die Rückzahlung zu verlangen, wird die
Kreditnehmerin bei Ablauf dieser Frist vorbehaltlich und
entsprechend der im betreffenden Pricing Supplement festgelegten Bedingungen das nicht nachrangige Darlehen
insgesamt (oder, wenn das nicht nachrangige Darlehen
teilweise abgetreten wurde, den an den Kreditgeber abgetretenen Teil des nicht nachrangigen Darlehens) am wahlweisen Rückzahlungstermin zum wahlweisen Rückzahlungsbetrag, der in dem Pricing Supplement spezifiziert ist
oder in der dort angegebenen Form festgesetzt wird, falls
erforderlich, zusammen mit den bis zum wahlweisen Rückzahlungstermin (jedoch ausschließlich desselben) angefallenen Stückzinsen zurückzahlen.
To exercise the right to require redemption of the Senior
Loan (or, if the Senior Loan has been assigned in part, such
part of the Senior Loan assigned to the Lender), the Lender
must deliver the Certificate of Indebtedness evidencing the
Senior Loan at the specified office of the Agent at any time
during normal business hours of the Agent falling within the
notice period, accompanied by a duly signed and completed
notice of exercise in the form (for the time being current)
obtainable from any specified office of the Agent (a “Put
Notice”) and in which the Lender must specify a bank
account (or, if payment is by cheque, an address) to which
payment is to be made under this Condition.
Um das Recht auf Rückzahlung des nicht nachrangigen
Darlehens (oder, wenn das nicht nachrangige Darlehen
teilweise abgetreten wurde, des an den Kreditgeber abgetretenen Teils des nicht nachrangigen Darlehens) auszuüben, muß der Kreditgeber den Schuldschein der über
dieses Darlehen ausgestellt wurde, bei der festgelegten
Geschäftsstelle eines Agent an einem Tag innerhalb der
Kündigungsfrist während der üblichen Geschäftszeiten dieses Agent einreichen, unter Beifügung einer rechtswirksam
unterzeichneten und ausgefüllten Erklärung über die Ausübung des Rechts auf vorzeitige Rückzahlung („Ausübungserklärung”), die in der jeweils gültigen Form bei jeder festgelegten Geschäftsstelle des Agent erhältlich ist und in der
der Kreditgeber ein Bankkonto (oder eine Adresse, falls
Zahlung per Scheck erfolgt) nennen muß, auf das (bzw. an
die) die Zahlung gemäß dieser Bestimmung geleistet werden muß.
(e) Early Redemption Amounts
(e) Rückzahlungsbeträge bei vorzeitiger
Rückzahlung
For the pupose of paragraph (b) above and Condition 10, the
Loan will be redeemed at the Early Redemption Amount
calculated as follows:
Für Zwecke des vorstehenden Absatzes (b) und der Nr. 10
wird das Darlehen zu dem wie folgt berechneten Rückzahlungsbetrag bei vorzeitiger Rückzahlung zurückgezahlt:
65
(i) in the case of a Loan with a Final Redemption Amount
equal to the Principal Amount, at the Final Redemption
Amount thereof; or
(i) im Fall eines Darlehens, dessen Rückzahlungsbetrag
bei Endfälligkeit dem Nennbetrag entspricht, zu dem
Rückzahlungsbetrag bei Endfälligkeit; oder
(ii) in the case of a Loan (other than a Zero Coupon
Loan) with a Final Redemption Amount which is or may
be less or greater than the Principal Amount or which is
payable in a Specified Currency other than that in which
the Loan was made, at the amount specified in, or
determined in the manner specified in, the applicable
Pricing Supplement or, if no such amount or manner is
so specified in the Pricing Supplement, at its Principal
Amount; or
(ii) im Fall eines Darlehens (außer eines NullkuponDarlehens), dessen Rückzahlungsbetrag bei Endfälligkeit höher oder niedriger ist oder sein kann als der
Nennbetrag oder welcher in einer anderen festgelegten
Währung als derjenigen, auf die das Darlehen lautet,
zahlbar ist, zu dem Betrag, der in dem Pricing Supplement festgelegt ist oder in der dort festgelegten Form
festgesetzt wird, oder, falls in dem Pricing Supplement
kein solcher Betrag und keine solche Festsetzung
spezifiziert ist, zu seinem Nennbetrag; oder
(iii) in the case of a Zero Coupon Loan, at an amount (the
“Amortised Face Amount”) equal to the sum of:
(iii) im Fall eines Nullkupon-Darlehens zu einem Betrag
(der „Amortisationsbetrag”), der sich zusammensetzt
aus:
(A) the Reference Price specified in the applicable
Pricing Supplement; and
(A) dem in dem betreffenden Pricing Supplement
festgelegten Referenzpreis; und
(B) the product of the Amortisation Yield specified
in the applicable Pricing Supplement (compounded
annually) being applied to the Reference Price from
(and including) the Disbursement Date to (but
excluding) the date fixed for redemption or (as the
case may be) the date upon which the Loan becomes
due and repayable,
(B) dem Produkt der in dem betreffenden Pricing
Supplement festgelegten (jährlich kapitalisierten)
Rendite bezogen auf den Referenzpreis ab (und einschließlich) dem Auszahlungstag bis zu (aber ausschließlich) dem vorgesehenen Rückzahlungstermin
oder (je nachdem) dem Termin, an dem dieses Darlehen fällig und rückzahlbar wird; oder
(iv) in the case of an Index-Linked Loan (unless otherwise provided in the applicable Pricing Supplement) at
an amount that on the due date for redemption would
have the effect of preserving for the Lender the economic equivalent of the obligation of the Borrower to make
payments (of interest and/or principal) in respect of the
Loan, that would otherwise have fallen due after the
date fixed for early redemption,
(iv) im Falle eines Indexierten Darlehens (sofern im
Pricing Supplement nichts anderes festgesetzt ist) zu
einem Betrag, der am Tag der Rückzahlung bewirken
würde, daß dem Kreditgeber der wirtschaftliche
Gegenwert der Verpflichtung der Kreditnehmerin, Zahlungen (von Zinsen und/oder Kapital) auf das Darlehen
zu leisten, die ansonsten nach dem für die vorzeitige
Rückzahlung vorgesehenen Termin fällig geworden wären, erhalten bliebe;
or such other amount as may be specified in the applicable
Pricing Supplement.
oder zu einem anderen Betrag, der im betreffenden Pricing
Supplement festgelegt ist.
Where such calculation is to be made for a period which is
not a whole number of years, it shall be made (A) in the case
of a Zero Coupon Loan payable in a Specified Currency
other than euro, on the basis of a 360-day year consisting of
12 months of 30 days each or (B) in the case of a Zero
Coupon Loan payable in euro, on the basis of the actual
number of days elapsed divided by 365 (or, if any of the days
elapsed falls in a leap year, the sum of (x) the number of
those days falling in a leap year divided by 366 and (y) the
number of those days falling in a non-leap year divided by
365) or (C) such other calculation basis as may be specified
in the applicable Pricing Supplement.
Wenn diese Berechnung für einen Zeitraum, der nicht einer
ganzen Anzahl von Kalenderjahren entspricht, durchzuführen ist, geschieht dies (A) im Fall eines Nullkupon-Darlehens, das in einer anderen festgelegten Währung als Euro
zahlbar ist, auf der Grundlage eines Jahres mit 360 Tagen,
eingeteilt in 12 Monate zu je 30 Tagen oder (B) im Fall eines
in Euro zahlbaren Nullkupon-Darlehens auf der Grundlage
der tatsächlichen Anzahl der abgelaufenen Tage dividiert
durch 365 (oder, falls irgendeiner der abgelaufenen Tage in
ein Schaltjahr fällt, der Summe (x) der Anzahl der in ein
Schaltjahr fallenden Tage dividiert durch 366 und (y) der
Anzahl der nicht in ein Schaltjahr fallenden Tage dividiert
durch 365) oder (C) auf einer anderen Berechnungsgrundlage, die im betreffenden Pricing Supplement festgelegt ist.
(f) Instalments
(f) Rückzahlung in Raten
An instalment Loan will be redeemed in the Instalment
Amounts and on the Instalment Dates specified in the
applicable Pricing Supplement. In the case of early
redemption, the Early Redemption Amount will be determined pursuant to paragraph (e) above.
Ein in Raten rückzahlbares Darlehen wird mit den Tilgungsraten zu den Tilgungsterminen, die im Pricing Supplement
festgelegt sind, zurückgezahlt. Im Fall der vorzeitigen
Rückzahlung wird der Rückzahlungsbetrag bei vorzeitiger
Rückzahlung gemäß dem vorstehenden Absatz (e) bestimmt.
(g) Partly Paid Loan
(g) Teilzahlungs-Darlehen
If the Loan is a Partly Paid Loan, it will be redeemed,
whether at maturity, early redemption or otherwise in
accordance with the provisions of this Condition 6 and the
Falls es sich bei dem Darlehen um ein Teilzahlungs- Darlehen
handelt, wird dieses sowohl bei Endfälligkeit als auch bei
vorzeitiger Rückzahlung oder Rückzahlung aus anderem
Grund gemäß dieser Nr. 6 und den Bestimmungen des
betreffenden Pricing Supplement zurückgezahlt.
(h) Late Payment on a Zero Coupon Loan
(h) Verspätete Zahlung auf ein Nullkupon-Darlehen
If the amount payable in respect of a Zero Coupon Loan
upon redemption of a Zero Coupon Loan pursuant to paragraph (a), (b), (c) or (d) above or upon its becoming due and
repayable as provided in Condition 10 (in the case of a
Wenn der zu zahlende Betrag für ein Nullkupon-Darlehen,
der gemäß Absatz (a), (b), (c) oder (d) fällig oder gemäß
Nr. 10 (im Fall eines nicht nachrangigen Darlehens) fällig
und zahlbar wird, bei Fälligkeit nicht gezahlt wird, dann ist
66
Senior Loan) is not paid when due, the amount due and
repayable in respect of the Zero Coupon Loan shall be the
amount calculated as provided in paragraph (e) (iii) above
as though the references therein to the date fixed for the
redemption or the date upon which the Zero Coupon Loan
becomes due and repayable were replaced by references to
the date:
der für dieses Nullkupon-Darlehen fällige und zahlbare Betrag der entsprechend dem obigen Absatz (e) (iii) berechnete Betrag, mit der Ausnahme, daß die darin enthaltenen
Bezüge auf das Datum der Rückzahlung oder das Datum der
Fälligkeit und Zahlbarkeit des Nullkupon-Darlehens ersetzt
wurden durch Bezüge auf den Tag
(i) on which all amounts due in respect of the Zero
Coupon Loan have been paid; and
(i) an dem alle fälligen Beträge in bezug auf das Nullkupon-Darlehen gezahlt worden sind; und
(ii) where such calculation is to be made for a period
which is not a whole number of years, it shall be made
(A) in the case of a Zero Coupon Loan payable in a
Specified Currency other than euro, on the basis of a
360-day year consisting of 12 months of 30 days each or
(B) in the case of a Zero Coupon Loan payable in euro,
on the basis of the actual number of days elapsed divided by 365 (or, if any of the days elapsed falls in a leap
year, the sum of (x) the number of those days falling in
a leap year divided by 366 and (y) the number of those
days falling in a non-leap year divided by 365) or (C) on
such other calculation basis as may be specified in the
(ii) wenn diese Berechnung für einen Zeitraum, der
nicht einer ganzen Anzahl von Kalenderjahren entspricht, durchzuführen ist, geschieht dies (A) im Fall
eines Nullkupon-Darlehens, das in einer anderen festgelegten Währung als Euro zahlbar ist, auf der Grundlage eines Jahres mit 360 Tagen, eingeteilt in 12 Monate
zu je 30 Tagen oder (B) im Fall eines in Euro zahlbaren
Nullkupon-Darlehen auf Basis der tatsächlichen Zahl
der abgelaufenen Tage, dividiert durch 365 (oder, falls
irgendeiner der abgelaufenen Tage in ein Schaltjahr
fällt, der Summe (x) der Zahl der in das Schaltjahr
fallenden Tage, geteilt durch 366, und (y) der Zahl der
nicht in das Schaltjahr fallenden Tage, geteilt durch
365) oder (C) auf einer anderen Berechnungsgrundlage, die im betreffenden Pricing Supplement festgelegt
ist.
7. Payments
7. Zahlungen
(a) General
(a) Allgemeines
Payment of principal and interest (if any) in respect of the
Loan shall be made on the respective due date therefor
(or if such date is not a Business Day, the next following
Business Day and the Lender shall not be entitled to further
interest or other payment in respect of such delay) to the
Lender named in the Certificate of Indebtedness or in the
declaration of assignment received by the Borrower at the
latest at the close of business on the fifteenth day before
such due date (the “Record Date”).
Die Zahlung von Kapital und (gegebenenfalls) Zinsen in
Hinblick auf das Darlehen ist an den im Schuldschein oder
in der von der Kreditnehmerin spätestens zum Geschäftsschluß am fünfzehnten Tag vor diesem Fälligkeitstag (der
„Stichtag“) erhaltenen Abtretungserklärung genannten Kreditgeber am jeweiligen Fälligkeitstag zu leisten (oder falls
dieser Tag kein Geschäftstag ist, am darauf folgenden Geschäftstag, ohne daß der Kreditgeber Anspruch auf zusätzliche Zinsen oder eine sonstige Zahlung wegen dieser Verzögerung hat).
(b) Method of Payment
(b) Zahlungsweise
Subject as provided below:
Vorbehaltlich der nachstehenden Regelungen:
(i) payments in a currency other than euro will be made
by transfer to an account in the relevant Specified
Currency maintained by the payee with, or by a cheque
in such Specified Currency drawn on, a bank which
shall be an authorised foreign exchange bank in the
principal financial centre of the country of such Specified Currency which, if the Specified Currency is
Australian dollars or New Zealand dollars, shall be
Sydney and Auckland, respectively); and
(i) erfolgen Zahlungen in anderer Währung als EURO
durch Überweisung auf ein Konto in der betreffenden
festgelegten Währung, das der Zahlungsempfänger bei
einer Bank im Hauptfinanzzentrum des Landes der
festgelegten Währung (das, wenn es sich bei der festgelegten Währung um den Australischen Dollar oder den
Neuseeländischen Dollar handelt, Sydney bzw. Auckland sein soll) unterhält oder durch einen auf eine solche Bank gezogenen Scheck in der festgelegten Währung;
(ii) payments in euro will be made by credit or transfer
to a euro account (or any other account to which euro
may be credited or transferred) specified by the payee
or, at the option of the payee, by a euro cheque.
(ii) erfolgen Zahlungen in EURO durch Gutschrift oder
Überweisung auf ein vom Zahlungsempfänger angegebenes EURO-Konto (oder ein anderes Konto, dem
Euro gutgeschrieben oder auf das Euro überwiesen
werden können) oder durch einen auf Euro lautenden
Scheck.
Payments will be subject in all cases to any fiscal, foreign
exchange or other laws and regulations applicable thereto
in the place of payment, but without prejudice to the provisions of Condition 8.
Die Zahlungen unterliegen jeweils allen anwendbaren Steuer-, Devisen- und sonstigen Gesetzen und Verordnungen
des Zahlungsortes, jedoch unbeschadet der Bestimmungen
von Nr. 8.
(c) Interpretation of Principal and Interest
(c) Begriffsbestimmung von Kapital und Zinsen
Any reference in these Terms and Conditions to principal in
respect of the Loan shall be deemed to include, as applicable:
Jeder Bezug in diesen Darlehensbedingungen auf Kapital in
bezug auf das Darlehen soll, soweit anwendbar, folgendes
einschließen:
(i) any additional amounts which may be payable with
respect to principal under Condition 8;
(i) alle zusätzlichen Beträge, die gemäß Nr. 8 hinsichtlich des Kapitals zahlbar sein können;
67
(ii) the Final Redemption Amount of the Loan;
(ii) den Rückzahlungsbetrag bei Endfälligkeit des Darlehens;
(iii) the Early Redemption Amount of the Loan;
(iii) den Rückzahlungsbetrag bei vorzeitiger Rückzahlung des Darlehens;
(iv) the Optional Redemption Amount(s) (if any) of the
Loan;
(iv) den (die) etwaigen wahlweise(n) Rückzahlungsbetrag (-beträge) des Darlehens;
(v) in relation to an Instalment Loan, the Instalment
Amount
(v) den Ratenbetrag in bezug auf ein in Raten rückzahlbares Darlehen;
(vi) in relation to a Zero Coupon Loan, the Amortised
Face Amount; and
(vi) den abgezinsten Nennbetrag in bezug auf ein Nullkupon-Darlehen; und
(vii) any premium and any other amounts which may
be payable by the Borrower under or in respect of the
Loan.
(vii) jedes Aufgeld und alle sonstigen Beträge, die die
Kreditnehmerin unter dem oder in bezug auf das
Darlehen möglicherweise zu zahlen hat.
Any reference in these Terms and Conditions to interest in
respect of the Loan shall be deemed to include, as applicable, any additional amounts which may be payable with
respect to interest under Condition 8.
Jeder Bezug in diesen Darlehensbedingungen auf Zinsen
hinsichtlich des Darlehens soll, soweit anwendbar, alle zusätzlichen Beträge einschließen, die möglicherweise gemäß Nr. 8 hinsichtlich der Zinsen zahlbar sind.
8. Taxation
8. Steuern
Unless otherwise specified in the applicable Pricing Supplement, all payments in respect of the Loan shall be made
without any withholding or deduction at source for or
on account of any present or future taxes, duties,
assessments or governmental charges of whatever nature
imposed, levied, collected, withheld or assessed by or within
the Federal Republic of Germany or any political subdivision or any authority thereof or therein having power to tax
(“Taxes”) unless such withholding or deduction is required
by law. In that event, the Borrower shall, to the fullest extent
necessary, in order that the Lender, after deduction or withholding of such Taxes, will receive the full amount then due
and payable provided that no such additional amount shall
be payable with respect to:
Sofern im betreffenden Pricing Supplement nicht anders
angegeben, sind alle Zahlungen auf das Darlehen ohne
Einbehalt oder Abzug an der Quelle von oder aufgrund von
irgendwelchen gegenwärtigen oder zukünftigen Steuern,
Abgaben, Veranlagungen oder staatlichen Gebühren gleich
welcher Art, die durch die Bundesrepublik Deutschland
oder eine ihrer Gebietskörperschaften oder eine ihrer zur
Erhebung von Steuern („Steuern“) ermächtigten Behörden
erhoben, auferlegt, eingezogen, einbehalten oder veranlagt
werden, zu leisten, es sei denn, ein solcher Abzug oder
Einbehalt ist gesetzlich vorgeschrieben. In diesem Falle
wird die Kreditnehmerin im vollen gesetzlich zulässigen
Umfang die zusätzlichen Beträge zahlen, die erforderlich
sind, damit der Kreditgeber nach Abzug oder Einbehalt
solcher Steuern den zu dem betreffenden Zeitpunkt fälligen
und zahlbaren Betrag in voller Höhe erhält, wobei jedoch
solche zusätzlichen Beträge nicht zahlbar sind in bezug auf:
(i) the Loan made by or on behalf of the Lender or
assigned to the Lender (a) who is for the relevant tax
purposes treated as a resident individual or corporation of the Federal Republic of Germany, or (b)
who is otherwise liable to such Taxes by reason of
the Lender being connected with the Federal
Republic of Germany other than by the mere fact of
his being the Lender or (c) unless otherwise specified in the applicable Pricing Supplement, who is for
the relevant tax purposes treated as a resident individual or corporation of another Member State of
the European Union or who is otherwise liable to
such Taxes by reason such Lender being connected
with another Member State of the European Union
other than by the mere fact of his being the Lender,
and such Taxes arise pursuant to legislation or
regulations introduced as a result of a directive of
the European Union; or
(i) das Darlehen, das gewährt wurde vom oder im
Namen des Kreditgebers oder abgetreten wurde an
den Kreditgeber, der (a) für die Zwecke der betreffenden Steuergesetze als in der Bundesrepublik
Deutschland gebietsansässige natürliche oder juristische Person angesehen wird, oder (b) solchen
Steuern aufgrund anderer Beziehungen zu der Bundesrepublik Deutschland unterliegt als der bloßen
Tatsache, daß er der Kreditgeber ist oder (c), sofern
in dem betreffenden Pricing Supplement nichts anderes vorgesehen ist, für die Zwecke der betreffenden Steuergesetze als gebietsansässige natürliche
oder juristische Person in einem anderen Mitgliedsstaat der Europäischen Union angesehen wird oder
solchen Steuern aufgrund anderer Beziehungen zu
einem anderen Mitgliedsstaat der Europäischen
Union unterliegt als der bloßen Tatsache, daß er der
Kreditgeber ist, und solche Steuern aufgrund von
Gesetzen oder Verordnungen anfallen, die durch
eine Richtlinie der Europäischen Union eingeführt
worden sind; oder
(ii) any payment being made to the Lender more
than 30 days after the relevant due date for reasons
beyond the control of the Borrowers (as defined
below), except to the extent that the Lender would
have been entitled to such additional amount if payment was made on the last day of such period of 30
days; or
(ii) jede Zahlung, die aus Gründen, die außerhalb
der Kontrolle der Kreditnehmerin liegen, mehr als
30 Tage nach dem entsprechenden Fälligkeitstag
(wie nachstehend definiert) an den Kreditgeber erfolgt; dieses gilt nicht, soweit der Kreditgeber Anspruch auf einen solchen zusätzlichen Betrag gehabt hätte, wenn die Zahlung am letzten Tag dieser
30-Tage-Frist erfolgt wäre; oder
(iii) any payment being made to the Lender in the
Federal Republic of Germany.
(iii) irgendeine an den Kreditnehmer in der Bundesrepublik Deutschland erfolgende Zahlung.
68
9. Agent and Calculation Agent
9. Agent und Berechnungsstelle
The names of the initial Agent and the initial Calculation
Agent and their initial specified offices are:
Die Namen des anfänglichen Agent und der anfänglichen
Berechnungsstelle und ihre anfänglichen festgelegten
Geschäftsstellen sind:
Agent: WestLB AG
Herzogstrasse 15
40217 Düsseldorf
Germany;
Agent: WestLB AG
Herzogstraße 15
40217 Düsseldorf
Deutschland;
Calculation Agent: The Agent, acting through the office
specified above, shall also be the Calculation Agent, unless
otherwise specified in the applicable Pricing Supplement.
Berechnungsstelle: Sofern nicht im betreffenden Pricing
Supplement anderweitig angegeben, ist der Agent, der über
die vorstehend festgelegte Geschäftsstelle agiert, auch die
Berechnungsstelle.
Should any contingency arise which, in the opinion of the
Agent would result in its being unable for reasons beyond
its control to act as Agent and/or Calculation Agent it shall
then be entitled to appoint as Agent and/or Calculation
Agent, another bank of international standing. If, in such
case, the Agent is unable to transfer its responsibilities as
Agent, the Borrower shall be entitled and obliged to appoint
a new Agent. The appointment of another Agent shall be
given to the Lender in accordance with Condition 13.
Sollten irgendwelche Umstände eintreten, die es dem Agent
aufgrund von Umständen außerhalb seiner Kontrolle unmöglich machen, als Agent und/oder Berechnungsstelle zu
agieren, ist der Agent berechtigt, eine andere Bank von
internationalem Rang als Agent und/oder Berechnungsstelle zu ernennen. Falls der Agent in einem solchen Falle nicht
in der Lage sein sollte, seine Verantwortlichkeiten als Agent
zu übertragen, ist die Kreditnehmerin berechtigt und verpflichtet, einen neuen Agent zu ernennen. Die Ernennung
eines neuen Agent ist dem Kreditgeber gemäß Nr. 13 bekannt zu machen.
All certificates, communications, opinions, determinations,
calculations, quotations and decisions given, expressed,
made or obtained for the purposes of these Terms and
Conditions by the Agent shall (in the absence of wilful
default, bad faith or manifest error) be binding on the
Borrower, the Agent, the Calculation Agent and the Lender
and (in the absence as aforesaid) no liability to the Borrower
or the Lender, shall attach to the Agent in connection with
the exercise or non-exercise by it of its powers, duties and
discretions pursuant to such provisions.
Alle Bescheinigungen, Mitteilungen, Gutachten, Festsetzungen, Berechnungen, Quotierungen und Entscheidungen, die für die Zwecke der Bestimmungen dieser Darlehensbedingungen vom Agent erteilt, abgegeben, vorgenommen oder eingeholt worden sind, sind (sofern keine
vorsätzliche Pflichtverletzung, kein böser Glaube und kein
offensichtlicher Irrtum vorliegen) für die Kreditnehmerin,
den Agent, die Berechnungsstelle und den Kreditgeber bindend, und (sofern keiner der oben genannten Umstände
vorliegt) haftet der Agent nicht gegenüber der Kreditnehmerin oder dem Kreditgeber im Zusammenhang mit der
Ausübung oder Nichtausübung seiner Rechte, Pflichten und
seines Ermessens gemäß solchen Bestimmungen.
10. Events of Default Relating to a Senior Loan
10. Kündigungsgründe in Bezug auf ein nicht
nachrangiges Darlehen
(a) The Lender of a Senior Loan may give written notice as
mentioned in Condition 10(b) below that the Senior Loan is,
and it shall accordingly forthwith become (unless prior to
the time when such written notice is received all such
defaults shall have been remedied), immediately due and
repayable at its Early Redemption Amount, together, if
appropriate, with interest accrued to the date of repayment,
in any of the following events (“Events of Default”):
(a) Der Kreditgeber eines nicht nachrangigen Darlehens kann
durch schriftliche Kündigung – wie unten unter Nr. 10 (b) erwähnt – das nicht nachrangige Darlehen fällig stellen, und
dieses wird unverzüglich (außer wenn vor Eingang der schriftlichen Kündigung alle diesbezüglichen Kündigungsgründe geheilt wurden) fällig und zu seinem Rückzahlungsbetrag bei
vorzeitiger Rückzahlung, zuzüglich etwaiger bis zum Rückzahlungstag angefallener Stückzinsen, zahlbar, wenn eines der
folgenden Ereignisse („Kündigungsgründe”) eintritt:
(i) the Borrower is in default, for any reason whatsoever,
in the payment of any amounts due under the Senior
Loan; or
(i) die Kreditnehmerin, gleichgültig aus welchen Gründen, mit ihren Zahlungsverpflichtungen aus dem nicht
nachrangigen Darlehen in Verzug kommt; oder
(ii) bankruptcy or court composition proceedings are
commenced before a court against the Borrower which
shall not have been dismissed or stayed within 60 days
after the commencement thereof, or the Borrower institutes such proceedings or suspends payments or offers
or makes a general arrangement for the benefit of all its
creditors; or
(ii) gegen die Kreditnehmerin ein Konkurs- oder Vergleichsverfahren gerichtlich eröffnet wird, das nicht
innerhalb von 60 Tagen nach dessen Eröffnung aufgehoben oder ausgesetzt worden ist, oder die Kreditnehmerin ein solches Verfahren beantragt oder ihre Zahlungen einstellt oder einen generellen Vergleich zugunsten der Gesamtheit ihrer Gläubiger anbietet oder durchführt; oder
(iii) the Borrower goes into liquidation unless such liquidation is to take place in connection with a merger,
consolidation or other combination with another company and such company assumes all obligations of the
Borrower under these Terms and Conditions.
(iii) die Kreditnehmerin in Liquidation geht, es sei denn,
daß eine solche Liquidation im Zusammenhang mit
einer Verschmelzung, Konsolidierung oder einer
anderen Form des Zusammenschlusses mit einer
anderen Gesellschaft vorgenommen wird und diese
Gesellschaft alle Verpflichtungen der Kreditnehmerin
aus diesen Darlehensbedingungen übernimmt.
(b) The Lender shall exercise his right to declare a Senior
Loan due by delivering or sending by registered mail to the
Borrower a written notice which shall state the Principal
Amount of the Senior Loan declared due and shall enclose
the Certificate of Indebtedness evidencing the Senior Loan.
(b) Der Kreditgeber soll sein Recht, ein Darlehen fällig zu
stellen, durch Übergabe einer schriftlichen Erklärung an
die Kreditnehmerin oder durch Übersendung einer schriftlichen Erklärung an die Kreditnehmerin mittels Einschreiben ausüben; diese schriftliche Erklärung hat den Nennbetrag des fällig gestellten Darlehens anzugeben und den
Schuldschein, der über dieses nicht nachrangige Darlehen
ausgestellt wurde, zu enthalten.
69
11. Replacement of Certificate of Indebtedness
evidencing a Loan
11. Ersetzung des Schuldscheins, der über ein Darlehen
ausgestellt wurde
Should any Certificate of Indebtedness evidencing the Loan
be lost, stolen, mutilated, defaced or destroyed, it may be
replaced at the specified office of the Agent, subject to all
applicable laws, upon payment by the claimant of such costs
and expenses as may be incurred in connection therewith
and on such terms as to evidence, security and indemnity
and otherwise as the Borrower may reasonably require.
Mutilated or defaced Certificates of Indebtedness evidencing the Loan must be surrendered before replacements
will be issued.
Sollte irgendein Schuldschein, der über das Darlehen ausgestellt wurde, verloren gehen, gestohlen, beschädigt, unleserlich gemacht oder zerstört werden, so kann er vorbehaltlich aller anwendbaren Gesetze in der festgelegten
Geschäftsstelle des Agent ersetzt werden; dabei hat der
Anspruchsteller alle dabei möglicherweise anfallenden
Kosten und Aufwendungen zu tragen und alle angemessenen Bedingungen der Kreditnehmerin hinsichtlich des
Nachweises, der Sicherheit, der Freistellung und dergleichen zu erfüllen. Beschädigte oder unleserlich gemachte Schuldscheine, die über das Darlehen ausgestellt wurden, müssen eingereicht werden, bevor Ersatzurkunden
ausgegeben werden.
12. Counterclaims
12. Gegenforderungen
If so specified in the applicable Pricing Supplement, the
Borrower waives, also in the event of insolvency or bankruptcy proceedings of the Lender, any right of set-off against the
claim arising from the Loan as well as the exercise of any
pledge, right or retention or other rights which could adversely affect the claims under the Loan.
Sofern im betreffenden Pricing Supplement so festgelegt,
verzichtet die Kreditnehmerin, auch im Fall eines Insolvenzoder Konkursverfahren gegen den Kreditgeber, auf jegliches Recht zur Aufrechnung gegen den Anspruch aus dem
Darlehen sowie auf die Ausübung eines Pfandrechts, Rückbehaltungsrechts oder anderer Rechte, die die Ansprüche
aus dem Darlehen negativ beinflussen könnten.
13. Notices
13. Bekanntmachungen
All notices regarding the Loan may be given, and are valid
if given, by post or fax at the address or fax number of the
Lender.
Alle Bekanntmachungen in bezug auf das Darlehen können
gültig per Post oder Fax an die Adresse oder Faxnummer
des Kreditgebers erfolgen.
14. Governing Law and Submission to Jurisdiction
14. Anwendbares Recht und Gerichtsstand
(a) Governing Law
(a) Anwendbares Recht
The Loan as to form and content, and all rights and duties of
the Lender, the Borrower, the Agent and the Calculation
Agent are governed by, and shall be construed exclusively
in accordance with, the laws of the Federal Republic of
Germany.
Form und Inhalt des Darlehens sowie alle Rechte und Pflichten des Kreditgebers, der Kreditnehmerin, des Agent und
der Berechnungsstelle unterliegen dem Recht der Bundesrepublik Deutschland und sollen ausschließlich dementsprechend ausgelegt werden.
(b) Jurisdiction
(b) Gerichtsstand
The place of jurisdiction for all proceedings arising out of or
in connection with the Loan shall be Düsseldorf.
Gerichtsstand für alle Rechtsstreitigkeiten, die sich aus dem
oder in Verbindung mit dem Darlehen ergeben, ist Düsseldorf.
(c) Place of Performance
(c) Erfüllungsort
The place of performance shall be Düsseldorf.
Erfüllungsort ist Düsseldorf.
15. Severability
15. Salvatorische Klausel
Should any provision of these Terms and Conditions be or
become invalid in whole or in part, the other provisions shall
remain in force. The invalid provision shall be deemed
substituted by a valid provision which accomplishes as far
as legally possible the economic purposes of the invalid
provision.
Sollte eine Bestimmung dieser Darlehensbedingungen ganz
oder teilweise rechtsunwirksam sein oder werden, so bleiben die übrigen Bestimmungen wirksam. Anstelle der
rechtsunwirksamen Bestimmung gilt eine wirksame Regelung, die den wirtschaftlichen Zwecken der rechtsunwirksamen Bestimmung soweit gesetzlich möglich Rechnung trägt.
16. Language
16. Sprache
These Terms and Conditions are written in the English
language and if so specified in the applicable Pricing
Supplement are translated into the German language. In
that event, the applicable Pricing Supplement will specify
whether the English or the German language version shall
be legally binding and controlling in each and every respect.
Diese Darlehensbedingungen sind in englischer Sprache
abgefaßt und werden in die deutsche Sprache übersetzt,
falls dieses im betreffenden Pricing Supplement festgelegt
ist. Im letzteren Falle legt das betreffende Pricing
Supplement fest, ob die englischsprachige oder die deutschsprachige Version die in jeder Hinsicht rechtlich bindende
und maßgebliche ist.
70
Use of Proceeds
The net proceeds from each issue of Notes and each Loan will be applied by the relevant Issuer or the Borrower
for its general financing purposes and in case of the Finance Subsidiaries only will be applied towards the purposes of on-lending to or investing in companies belonging to the same group of companies to which the Finance
Subsidiaries belong.
71
Form of
Senior Guarantee
Form der nicht
nachrangigen Garantie
of
der
WestLB AG
WestLB AG
in favour of the holders of senior debt securities
zugunsten der Inhaber von nicht nachrangigen schuldrechtlichen Wertpapieren
(the “Senior Notes”)
(die „nicht nachrangigen Teilschuldverschreibungen”),
issued by WestLB Finance Netherlands B.V. and
die von der WestLB Finance Netherlands B.V. und der
on or after the date hereof under the Debt Issuance
Programme (the “Programme”) pursuant to an amended
and restated programme agreement dated 30th May, 2003,
as amended, supplemented or restated from time to
time (the “Programme Agreement”)
am oder nach dem Datum dieser nicht nachrangigen
Garantie im Rahmen des Debt Issuance Programms
(das„Programm”) aufgrund eines abgeänderten und
neu-gefassten Programme Agreement mit Datum vom
30. Mai 2003 jeweils wie abgeändert, ergänzt oder neugefasst (das „Programme Agreement”) begeben werden.
WHEREAS
DARSTELLUNG DES SACHVERHALTS
(A) WestLB AG (the “Guarantor”), WestLB Finance Netherlands B.V. (“WestLB Netherlands”) and WestLB Finance
Curaçao N.V. (“WestLB Curaçao”) intend to issue from time
to time Notes in an aggregate principal amount outstanding
at any one time not exceeding the programme limit in
accordance with the Programme Agreement.
(A) Die WestLB AG (die „Garantin”), die WestLB Finance
Netherlands B.V. („WestLB Netherlands”) und die WestLB
Finance Curaçao N.V. („WestLB Curaçao”) beabsichtigen,
von Zeit zu Zeit Teilschuldverschreibungen auszugeben, deren jeweils ungetilgter Gesamtnennbetrag das ProgrammLimit gemäß den Bestimmungen des Programme Agreement
nicht übersteigt.
(B) The Guarantor wishes to guarantee by this Senior
Guarantee the payment of principal and interest and any
other amounts payable and the performance of other
obligations under any and all Senior Notes that may at any
time be issued under the Programme on or after the date
hereof by WestLB Netherlands and WestLB Curaçao.
(B) Die Garantin möchte durch diese nicht nachrangige
Garantie die Zahlung von Kapital und Zinsen und allen
etwaigen sonstigen Beträgen und die Erfüllung sonstiger
Verpflichtungen, die unter den im Rahmen des Programms
am oder nach dem Datum dieser nicht nachrangigen Garantie von der WestLB Netherlands und der WestLB
Curaçao zu irgendeiner Zeit möglicherweise begebenen
nicht nachrangigen Teilschuldverschreibungen zahlbar
oder erfüllbar sind, garantieren.
(C) This Senior Guarantee replaces the senior guarantee
(the “2001 Senior Guarantee“) dated 13th July, 2001 executed by the Guarantor.
(C) Diese nicht nachrangige Garantie ersetzt die von der
Garantin ausgestellte nicht nachrangige Garantie (die
„nicht nachrangige Garantie 2001“) vom 13. Juli 2001.
IT IS HEREBY AGREED as follows:
HIERMIT WIRD FOLGENDES VEREINBART:
(1) The provisions of this Senior Guarantee shall apply only
to those Senior Notes issued by WestLB Netherlands or
WestLB Curaçao on and after the date hereof. Senior Notes
issued by WestLB Netherlands or WestLB Curaçao before
the date hereof shall continue to have the benefit of the 2001
Senior Guarantee or any other previous senior guarantee,
as applicable, and references to “Senior Notes“, “Receipts“,
“Coupons“, “Global Note“ and all other terms shall be construed accordingly.
(1) Diese nicht nachrangige Garantie findet nur auf diejenigen nicht nachrangigen Teilschuldverschreibungen Anwendung, die von der WestLB Netherlands oder der WestLB
Curaçao an oder nach dem Datum dieser nicht nachrangigen
Garantie begeben werden. Auf solche nicht nachrangigen
Teilschuldverschreibungen, die von der WestLB Netherlands
oder der WestLB Curaçao vor dem Datum dieser nicht nachrangigen Garantie begeben wurden, findet weiterhin die nicht
nachrangige Garantie 2001 bzw. die im Einzelfall anwendbare frühere nicht nachrangige Garantie Anwendung, und Bezugnahmen auf „nicht nachrangige Teilschuldverschreibungen“, „Rückzahlungsscheine“, „Zinsscheine“, „Global-Teilschuldverschreibung“ sowie alle anderen Begriffe sind entsprechend zu verstehen.
(2) The Guarantor unconditionally and irrevocably guarantees to the holders of each Senior Note (which expression
shall include any Global Note (in temporary or permanent
form) representing Senior Notes), or the Receipts or
Coupons relating to it, now or at any time hereafter issued
by WestLB Netherlands or WestLB Curaçao under the
Programme the due and punctual payment of the principal
of, and interest on, the Senior Notes or the Receipts or
Coupons relating to them, and any other amounts which
may be expressed to be payable under a Senior Note or the
Receipts or Coupons relating to it, in accordance with the
Terms and Conditions of the Notes, as amended,
supplemented or modified by the applicable Pricing Supplement (as defined therein) (the “Conditions”), as and
when the same shall become due in accordance with the
Conditions and the performance of other obligations of
WestLB Netherlands or WestLB Curaçao under the Conditions (including, if applicable, the delivery of underlying
securities in the case of Credit Linked Notes).
(2) Die Garantin übernimmt gegenüber den Inhabern jeder
nicht nachrangigen Teilschuldverschreibung (dieser Begriff
schließt jede (vorläufige oder Dauer-Global-) Teilschuldverschreibung ein, die nicht nachrangige Teilschuldverschreibungen verbrieft) oder der dazu gehörigen Rückzahlungsscheine oder Zinsscheine, die jetzt oder zu einem späteren
Zeitpunkt von der WestLB Netherlands oder der WestLB
Curaçao aufgrund des Programms begeben werden, die unbedingte und unwiderrufliche Garantie für die ordnungsgemäße und pünktliche Zahlung von Kapital und Zinsen auf die
nicht nachrangigen Teilschuldverschreibungen oder die dazu
gehörigen Rückzahlungsscheine und Zinsscheine sowie der
etwaigen sonstigen Beträge, die unter einer nicht nachrangigen Teilschuldverschreibung oder unter den dazu gehörigen
Rückzahlungsscheinen oder Zinsscheinen zahlbar sind, sowie für die Erfüllung sonstiger Verpflichtungen (einschließlich, falls anwendbar, der Lieferung von zugrundeliegenden
Wertpapieren im Falle von Teilschuldverschreibungen mit
Kreditkomponente) gemäß den durch das betreffende Pricing Supplement (wie in den Anleihebedingungen definiert)
angepassten oder ergänzten Anleihebedingungen der Teilschuldverschreibungen (die „Anleihebedingungen”), sobald
diese Zahlungen oder die Erfüllung solcher Verpflichtungen
den Anleihebedingungen gemäß fällig werden.
72
(3) Unless otherwise specified in the applicable Pricing
Supplement with respect to the Notes, all payments under
this Senior Guarantee shall be made without any withholding or deduction at source for, or on account of, any present
or future taxes, duties, assessments or governmental charges of whatever nature (“Taxes”) imposed, levied, collected, withheld or assessed by or within the Federal Republic
of Germany or any authority therein or thereof having power to tax unless such withholding or deduction is required
by law. In that event, the Guarantor shall to the fullest extent
necessary in order that each holder of any Senior Note,
Receipt or Coupon, after deduction or withholding of such
Taxes, will receive the full amount then due and payable,
provided that no such additional amount shall be payable
with respect to:
(3) Sofern in dem entsprechenden Pricing Supplement
nichts anderes vorgesehen ist, sind alle Zahlungen aufgrund dieser nicht nachrangigen Garantie ohne Einbehalt
oder Abzug an der Quelle von oder aufgrund von
irgendwelchen gegenwärtigen oder zukünftigen Steuern,
Abgaben, Veranlagungen oder staatlichen Gebühren gleich
welcher Art („Steuern”), die durch die oder in der Bundesrepublik Deutschland oder durch eine zur Erhebung von
Steuern ermächtigte Behörde der Bundesrepublik Deutschland erhoben, auferlegt, eingezogen, einbehalten oder veranlagt werden, zu leisten, es sei denn, ein solcher Abzug
oder Einbehalt ist gesetzlich vorgeschrieben. In diesem Fall
wird die Garantin im vollen gesetzlich zulässigen Umfang
die zusätzlichen Beträge zahlen, die erforderlich sind, damit jeder Inhaber einer nicht nachrangigen Teilschuldverschreibung, eines Rückzahlungsscheins oder Zinsscheins
nach Abzug oder Einbehalt solcher Steuern den zu dem
betreffenden Zeitpunkt fälligen und zahlbaren Betrag in
voller Höhe erhält, wobei jedoch solche zusätzlichen Beträge nicht zahlbar sind in bezug auf:
(i) any Senior Note, Receipt or Coupon held by or on
behalf of a Noteholder (a) who is for the relevant tax
purposes treated as a resident individual or corporation
of the Federal Republic of Germany or (b) who is able to
avoid such withholding or deduction by satisfying any
statutory requirements or by making a declaration of
non-residence or other similar claims for exemption to
the relevant tax authority but fails to do so or (c) who is
otherwise liable to such Taxes in respect of such Senior
Note, Receipt or Coupon by reason of such holder being
connected with the Federal Republic of Germany other
than by the mere fact of his being a holder of such
Senior Note, Receipt or Coupon or (d) unless otherwise
specified in the applicable Pricing Supplement, who is
for the relevant tax purposes treated as a resident individual or corporation of another Member State of the
European Union or who is otherwise liable to such
Taxes by reason of such holder being connected with
another Member State of the European Union other
than by the mere fact of his being the holder of such
Senior Note, Receipt or Coupon, and such Taxes arise
pursuant to legislation or regulations introduced as a
result of a directive of the European Union; or
(i) eine nicht nachrangige Teilschuldverschreibung oder
einen Rückzahlungsschein oder Zinsschein, die/der von
einem Inhaber einer Teilschuldverschreibung oder zugunsten eines Inhabers einer Teilschuldverschreibung
gehalten wird, welcher (a) für die Zwecke der betreffenden Steuergesetze als gebietsansässige natürliche oder
juristische Person in der Bundesrepublik Deutschland
angesehen wird oder (b) einen solchen Einbehalt oder
Abzug durch die Erfüllung von gesetzlichen Anforderungen oder eine Nichtansässigkeitserklärung oder einen
ähnlichen Anspruch auf Befreiung gegenüber der betreffenden Steuerbehörde vermeiden kann, solches aber
unterläßt oder (c) solchen Steuern auf diese nicht nachrangige Teilschuldverschreibung, den Rückzahlungsschein oder Zinsschein aufgrund anderer Beziehungen
zur Bundesrepublik Deutschland unterliegt als der bloßen Tatsache, daß er Inhaber dieser nicht nachrangigen
Teilschuldverschreibung, des Rückzahlungsscheins oder
Zinsscheins ist oder (d), sofern in dem betreffenden Pricing Supplement nichts anderes vorgesehen ist, für die
Zwecke der betreffenden Steuergesetze als gebietsansässige natürliche oder juristische Person in einem anderen Mitgliedsstaat der Europäischen Union angesehen
wird oder solchen Steuern aufgrund anderer Beziehungen zu einem anderen Mitgliedsstaat der Europäischen
Union unterliegt als der bloßen Tatsache, daß er Inhaber
einer solchen Teilschuldverschreibung oder eines solchen Rückzahlungsscheins oder Zinsscheins ist, und solche Steuern aufgrund von Gesetzen oder Verordnungen
anfallen, die durch eine Richtlinie der Europäischen Union eingeführt worden sind; oder
(ii) any Senior Note, Receipt or Coupon presented for
payment more than 30 days after the Relevant Date (as
defined below), except to the extent that the holder of
such Senior Note, Receipt or Coupon would have been
entitled to such additional amount on presenting the
same for payment on the last day of such period of 30
days; or
(ii) eine nicht nachrangige Teilschuldverschreibung,
einen Rückzahlungsschein oder Zinsschein, die/der
mehr als 30 Tage nach dem Stichtag (wie nachstehend
definiert) zur Zahlung vorgelegt wird; dieses gilt nicht,
soweit der Inhaber Anspruch auf einen solchen zusätzlichen Betrag gehabt hätte, wenn er die nicht nachrangige Teilschuldverschreibung, den Rückzahlungsschein oder Zinsschein am letzten Tag dieser 30-TageFrist zur Zahlung vorgelegt hätte; oder
or withholding; or
the Senior Notes, Receipts or Coupons are being presented for payment effectively at the counter; or
(iv) Steuern, die nur deshalb abgezogen oder einbehalten
werden, weil die nicht nachrangigen Teilschuldverschreibungen, die Rückzahlungsscheine oder Zinsscheine effektiv zur Einlösung am Schalter vorgelegt werden; oder
(v) any Senior Note, Receipt or Coupon presented for
payment in the Federal Republic of Germany; or
(v) eine nicht nachrangige Teilschuldverschreibung,
einen Rückzahlungsschein oder einen Zinsschein, die/
der in der Bundesrepublik Deutschland zur Zahlung
vorgelegt wird; oder
(vi) jeden Einbehalt oder Abzug hinsichtlich einer Zahlung an eine natürliche Person, der aufgrund einer
Richtlinie der Europäischen Union zur Besteuerung
von Kapitaleinkünften, welche die Ergebnisse der Sitzung des ECOFIN-Rats vom 26./27. November 2000
umsetzt, oder aufgrund eines Gesetzes, das diese Richtlinie umsetzt, mit ihr im Einklang steht oder verabschiedet wurde, um diesen Einklang herzustellen, vorgenommen werden muß; oder
73
(vii) any Senior Note, Receipt or Coupon presented for
payment by or on behalf of a holder who would have
been able to avoid such withholding or deduction by
presenting the relevant Senior Note to another Paying
Agent in a Member State of the EU.
(vii) eine nicht nachrangige Teilschuldverschreibung, einen Rückzahlungsschein oder Zinsschein, die/der durch
oder für einen Inhaber zur Zahlung vorgelegt wird, wenn
dieser Inhaber einen solchen Abzug oder Einbehalt durch
Vorlage der betreffenden nicht nachrangigen Teilschuldverschreibung bei einer anderen Zahlstelle in einem Mitgliedsstaat der EU hätte vermeiden können.
As used herein, “Relevant Date” in respect of any Senior
Note or Receipt or Coupon relating to it means the date on
which such payment in respect thereof first becomes due,
except that, if the full amount of the moneys payable has not
been duly received by the Agent on or prior to such date. It
means the date on which, the full amount of such moneys
having been so received, notice to that effect is duly given to
the Noteholders.
Für die Zwecke dieser nicht nachrangigen Garantie bedeutet „Stichtag” in bezug auf eine nicht nachrangige Teilschuldverschreibung oder einen dazugehörigen Rückzahlungsschein oder Zinsschein den Tag, an dem eine solche
Zahlung zuerst fällig wird. Wenn jedoch der Agent die volle
Summe der zu zahlenden Beträge nicht am oder vor dem
jeweiligen Fälligkeitstag ordnungsgemäß erhalten hat, dann
ist der Stichtag der Tag, an dem, nachdem die volle Summe
der zu zahlenden Beträge bei dem Agent eingegangen ist,
dieses den Inhabern von Teilschuldverschreibungen ordnungsgemäß mitgeteilt wird.
References herein to principal and/or interest shall be
deemed to include any additional amounts which may be
payable under this Clause (3).
Bezugnahmen in dieser nicht nachrangigen Garantie auf
Kapital und/oder Zinsen sollen diejenigen zusätzlichen Beträge einschließen, die möglicherweise aufgrund dieser Bestimmung (3) zahlbar sind.
(4) The obligations of the Guarantor under this Senior
Guarantee (i) shall be separate and independent from the
obligations of WestLB Netherlands and WestLB Curaçao under the Senior Notes or the Receipts or Coupons relating to
them, (ii) shall exist irrespective of the legality, validity, binding effect or enforceability of the Senior Notes or the Receipts or Coupons relating to them and (iii) shall not be
affected by any event, condition or circumstance of whatever
nature, whether factual or legal, save the full, definitive and
irrevocable satisfaction of any and all payment and performance obligations expressed to be assumed under the Senior
Notes or the Receipts or Coupons relating to them.
(4) Die Verpflichtungen der Garantin aus dieser nicht nachrangigen Garantie (i) sind losgelöst und unabhängig von den
Verpflichtungen der WestLB Netherlands und der WestLB
Curaçao aus den nicht nachrangigen Teilschuldverschreibungen oder den dazu gehörigen Rückzahlungsscheinen oder
Zinsscheinen, (ii) bestehen ohne Rücksicht auf die Rechtmäßigkeit, Gültigkeit, bindende Wirkung oder Durchsetzbarkeit
der nicht nachrangigen Teilschuldverschreibungen oder der
dazu gehörigen Rückzahlungsscheine oder Zinsscheine und
(iii) werden nicht durch irgendein Ereignis, eine Bedingung
oder einen Umstand, seien sie tatsächlicher oder rechtlicher
Natur, berührt, außer durch die volle, endgültige und unwiderrufliche Erfüllung aller Zahlungs- und Erfüllungsverpflichtungen, die unter den nicht nachrangigen Teilschuldverschreibungen oder den dazu gehörigen Rückzahlungsscheinen oder
Zinsscheinen übernommen werden.
(5) The obligations of the Guarantor under this Senior
Guarantee shall without any further act or thing being
required to be done or to occur extend to the obligations of
any Substituted Issuer which is not the Guarantor arising in
respect of any Senior Note or Receipt or Coupon relating to
it by virtue of an assumption of obligations pursuant to
Condition 14.
(5) Die Verpflichtungen der Garantin aus dieser nicht nachrangigen Garantie erstrecken sich auch – ohne daß dazu eine
weitere Handlung vorgenommen wird oder ein Umstand
eintreten müßte – auf die Verpflichtungen einer Ersatzschuldnerin, bei der es sich nicht um die Garantin handelt, hinsichtlich der nicht nachrangigen Teilschuldverschreibungen oder
der dazu gehörigen Rückzahlungsscheine oder Zinsscheine,
die aufgrund einer Übernahme von Verpflichtungen gemäß
Nr. 14 der Anleihebedingungen entstehen.
(6) This Senior Guarantee and all agreements herein
contained constitute a contract in favour of the holders of
Senior Notes and Receipts and Coupons relating to them
from time to time as third party beneficiaries pursuant to §
328(1) of the German Civil Code giving rise to the right of
each such holder to require performance of the obligations
undertaken herein directly from the Guarantor and to enforce
such obligations directly against the Guarantor. As such, this
Senior Guarantee constitutes a direct, unconditional and unsecured obligation of the Guarantor and ranks pari passu
with all its other unsecured and unsubordinated obligations.
(6) Diese nicht nachrangige Garantie und alle darin enthaltenen Vereinbarungen bilden einen Vertrag zugunsten der
Inhaber von nicht nachrangigen Teilschuldverschreibungen und der jeweils dazu gehörigen Rückzahlungsscheine
und Zinsscheine als Drittbegünstigte gemäß § 328(1) BGB
und geben jedem dieser Inhaber das Recht, die Erfüllung
der hierin eingegangenen Verpflichtungen direkt von der
Garantin zu fordern und diese Verpflichtungen direkt gegenüber der Garantin durchzusetzen. Diese nicht nachrangige Garantie als solche stellt eine direkte, unbedingte und
unbesicherte Verbindlichkeit der Garantin dar und steht im
gleichen Rang mit allen anderen unbesicherten und nicht
nachrangigen Verbindlichkeiten der Garantin.
(7) Merrill Lynch International with which the agreements
herein contained are made does not act as fiduciary agent or
in any similar capacity for the holders of Senior Notes or
Receipts or Coupons relating to them.
(7) Die Merrill Lynch International, mit der die hierin enthaltenen Verbindlichkeiten getroffen werden, ist nicht als
Treuhänderin oder in einer ähnlichen Funktion für die
Inhaber von nicht nachrangigen Teilschuldverschreibungen oder dazu gehörigen Rückzahlungsscheinen oder Zinsscheinen tätig.
(8) Terms used and not otherwise defined herein shall have
the meanings attributed to them in the Conditions. The
Guarantor agrees that it will comply with and be bound by
those provisions in the Conditions which relate to it.
(8) Die hierin verwendeten und nicht anders definierten
Begriffe haben die Bedeutung, die ihnen in den Anleihebedingungen zugewiesen werden. Die Garantin erklärt, daß
sie die sie betreffenden Bestimmungen der Anleihebedingungen einhalten wird und an sie gebunden ist.
(9) This Senior Guarantee is governed exclusively by, and
shall be construed in accordance with, the laws of the
Federal Republic of Germany. Place of performance and
place of jurisdiction shall be Düsseldorf.
(9) Diese nicht nachrangige Garantie unterliegt ausschließlich dem Recht der Bundesrepublik Deutschland und soll
dementsprechend ausgelegt werden. Erfüllungsort und Gerichtsstand ist Düsseldorf.
(10) If any provision of this Senior Guarantee is or shall
become invalid in whole or in part, the other provisions
(10) Sollte eine Bestimmung dieser nicht nachrangigen Garantie ganz oder teilweise rechtsunwirksam sein oder wer-
74
hereof shall remain in force. The invalid provision shall be
deemed substituted by a valid provision which accomplishes
as far as legally possible the economic purposes of the invalid
provision.
den, so bleiben die übrigen Bestimmungen wirksam. Anstelle
der rechtsunwirksamen Bestimmung gilt eine wirksame Regelung, die den wirtschaftlichen Zwecken der rechtsunwirksamen
Bestimmung soweit gesetzlich möglich Rechnung trägt.
(11) This Senior Guarantee is written in the English language and translated into the German language. The English
language version shall be legally binding and controlling in
each and every respect, unless otherwise specified in the
(11) Diese nicht nachrangige Garantie ist in englischer Sprache abgefaßt und wird in die deutsche Sprache übersetzt.
Sofern das betreffende Pricing Supplement nichts anderes
festlegt, ist die englischsprachige Version in jeder Hinsicht
rechtlich bindend und maßgeblich.
(12) The original copy of this Senior Guarantee shall be
delivered to, and kept by, Merrill Lynch International.
(12) Das Original dieser nicht nachrangigen Garantie wird
der Merrill Lynch International ausgehändigt und von ihr
verwahrt.
(13) Any holder of a Senior Note or the Receipt or Coupon
relating to it (being a “Noteholder” as that term is defined in
the Conditions) who holds through a Relevant Clearing
System may in any proceedings against the Guarantor or to
which such holder of a Senior Note or Receipt or Coupon
and the Guarantor are parties protect and enforce in his own
name his rights arising under this Senior Guarantee on the
basis of:
(13) Jeder Inhaber einer nicht nachrangigen Teilschuldverschreibung oder des dazu gehörigen Rückzahlungsscheins
oder Zinsscheins (ein „Inhaber von Teilschuldverschreibungen” gemäß der Definition in den Anleihebedingungen), der
diese/diesen über ein relevantes Abrechungssystem hält, kann
in jedem Rechtsstreit gegen die Garantin oder in jedem
Rechtsstreit, in dem dieser Inhaber einer nicht nachrangigen
Teilschuldverschreibung oder eines Rückzahlungsscheins
oder Zinsscheins und die Garantin Partei sind, seine Rechte
aus der nicht nachrangigen Garantie im eigenen Namen auf
der Grundlage wahrnehmen und durchsetzen, daß er:
(i) either evidence that he is the holder of the legal title
to the relevant Senior Notes held in such Relevant Clearing System or a statement issued by the Custodian with
whom such Noteholder maintains a securities account
in respect of the Senior Notes (a) stating the full name
and address of the Noteholder, (b) specifying the aggregate principal amount of the Senior Notes credited to
such securities account on the date of such statement
and (c) confirming that the Senior Notes so credited to
such securities account have been blocked in the name
of the Noteholder from which they will be unblocked
only upon instructions from such Noteholder to such
effect, together with written notice to the Guarantor (or
any person lawfully acting on behalf of the Guarantor or
in its place), and bearing an acknowledgement of the
Relevant Clearing System;
(i) entweder beweist, daß er der Inhaber eines uneingeschränkten Eigentumsrechts an den betreffenden nicht
nachrangigen Teilschuldverschreibungen, die in dem
relevanten Abrechungssystem verwahrt werden, ist,
oder eine Bestätigung einer Depotbank, bei der
der Inhaber von Teilschuldverschreibungen ein Wertpapierkonto unterhält, beibringt, und in der in bezug
auf die nicht nachrangigen Teilschuldverschreibungen
(a) der vollständige Name und die vollständige Adresse
des Inhabers von Teilschuldverschreibungen angegeben wird, (b) der Gesamtnennbetrag der nicht nachrangigen Teilschuldverschreibungen, die unter dem Datum
der Bestätigung auf dem Wertpapierkonto verbucht
sind, bezeichnet und (c) bestätigt wird, daß die auf
diesem Wertpapierkonto verbuchten nicht nachrangigen Teilschuldverschreibungen im Namen des Inhabers
von Teilschuldverschreibungen gesperrt sind und nur
auf dementsprechende Anweisung des Inhabers von
Teilschuldverschreibungen freigegeben werden, zusammen mit einer schriftlichen Mitteilung an die Garantin
(oder eine Person, die rechtwirksam für die oder an
Stelle der Garantin handelt) versehen mit einer Bestätigung des relevanten Abrechnungssystems;
(ii) a copy of such Senior Notes certified as being a true
copy by a duly authorised officer of the Relevant Clearing System or the common depositary (if any), without
the need for production in such proceedings of the
actual records or the Senior Notes; and
(ii) eine durch einen ordnungsgemäß autorisierten Angestellten des relevanten Abrechnungssystems oder des
etwaigen Sammelverwahrers als wahre Kopie bestätigte Kopie dieser nicht nachrangigen Teilschuldverschreibungen beibringt, ohne daß eine Vorlage der tatsächlichen Unterlagen oder der nicht nachrangigen Teilschuldverschreibungen nötig ist; und
(iii) a copy of this Senior Guarantee certified as being a
true copy by a duly authorised officer of Merrill Lynch
International, without the need for production in such
proceedings of this Senior Guarantee.
(iii) eine durch einen ordnungsgemäß autorisierten Angestellten der Merrill Lynch International als wahre
Kopie bestätigte Kopie dieser nicht nachrangigen
Garantie vorlegt, ohne daß in dem Rechtsstreit diese
nicht nachrangige Garantie vorgelegt werden muß.
For the purposes of the foregoing, “Custodian” means
any bank or other financial institution of recognised
standing authorised to engage in securities custody
business with which the Noteholder maintains a securities account in respect of the Senior Notes and includes
the Relevant Clearing System.
Für die Zwecke des Vorstehenden bedeutet „Depotbank”
jede Bank oder jedes andere Finanzinstitut von anerkanntem Ansehen, die/das berechtigt ist, das Wertpapierverwahrgeschäft zu betreiben, und bei der oder dem
der Inhaber von Teilschuldverschreibungen ein Wertpapierkonto in bezug auf die nicht nachrangigen Teilschuldverschreibungen unterhält; der Begriff „Depotbank”
schließt das relevante Abrechnungssystem ein.
Düsseldorf/Münster, 30th May, 2003
Düsseldorf/Münster, den 30. Mai 2003
WESTLB AG
We accept the terms of the above Senior Guarantee without recourse, warranty or liability.
30th May, 2003
Wir akzeptieren die Bestimmungen der vorstehenden
nicht nachrangigen Garantie ohne Regreß,
Gewährleistung oder Obligo.
30. Mai 2003
MERRILL LYNCH INTERNATIONAL
75
Form of
Subordinated Guarantee
Form der nachrangigen
Garantie
of
der
WestLB AG
WestLB AG
in favour of the holders of subordinated debt securities
zugunsten der Inhaber von nachrangigen schuldrechtlichen Wertpapieren
(the “Subordinated Notes”)
(die „nachrangigen Teilschuldverschreibungen”),
issued by
WestLB Finance Netherlands B.V. and
on or after the date hereof
under the Debt Issuance
Programme (the “Programme”)
pursuant to an amended and restated programme
agreement dated 30th May, 2003,
as amended, supplemented or restated
from time to time
(the “Programme Agreement”)
die von der WestLB Finance Netherlands B.V. und der
am oder nach dem Datum dieser nachrangigen Garantie
im Rahmen des Debt Issuance
Programms (das „Programm”)
aufgrund eines abgeänderten und neu gefaßten
Programme Agreement mit Datum
vom 30. Mai 2003
jeweils wie abgeändert, ergänzt oder neu gefaßt
(das „Programme Agreement”)
begeben werden.
WHEREAS
DARSTELLUNG DES SACHVERHALTS
(A) WestLB AG (the “Guarantor”), WestLB Finance Netherlands B.V. (“WestLB Netherlands”) and WestLB Finance
Curaçao N.V. (“WestLB Curaçao”) intend to issue from time
to time Notes in an aggregate principal amount outstanding
at any one time not exceeding the programme limit in
accordance with the Programme Agreement.
(A) Die WestLB AG (die „Garantin”), die WestLB Finance
Netherlands B.V. („WestLB Netherlands”) und die WestLB
Finance Curaçao N.V. („WestLB Curaçao”) beabsichtigen,
von Zeit zu Zeit Teilschuldverschreibungen auszugeben,
deren jeweils ungetilgter Gesamtnennbetrag das ProgrammLimit gemäß den Bestimmungen des Programme Agreement nicht übersteigt.
(B) The Guarantor wishes to guarantee by this Subordinated Guarantee the payment of principal and interest and any
other amounts payable and the performance of other obligations under any and all Subordinated Notes that may at
any time be issued under the Programme on or after the
date hereof by WestLB Netherlands and WestLB Curaçao.
(B) Die Garantin möchte durch diese nachrangige Garantie
die Zahlung von Kapital und Zinsen und allen etwaigen
sonstigen Beträgen und die Erfüllung sonstiger Verpflichtungen, die unter den im Rahmen des Programms am oder
nach dem Datum dieser nachrangigen Garantie von der
WestLB Netherlands und der WestLB Curaçao zu irgendeiner Zeit möglicherweise begebenen nachrangigen
Teilschuldverschreibungen zahlbar oder erfüllbar sind,
garantieren.
(C) This Subordinated Guarantee replaces the subordinated guarantee (the “2001 Subordinated Guarantee“) dated
13th July, 2001 executed by the Guarantor.
(C) Diese nachrangige Garantie ersetzt die von der Garantin ausgestellte nachrangige Garantie (die „nachrangige
Garantie 2001“) vom 13. Juli 2001.
IT IS HEREBY AGREED as follows:
HIERMIT WIRD FOLGENDES VEREINBART:
(1) The provisions of this Subordinated Guarantee shall
apply only to those Subordinated Notes issued by WestLB
Netherlands or WestLB Curaçao on and after the date hereof. Subordinated Notes issued by WestLB Netherlands or
WestLB Curaçao before the date hereof shall continue to
have the benefit of the 2001 Subordinated Guarantee or any
other previous subordinated guarantee, as applicable, and
references to “Subordinated Notes“, “Receipts“, “Coupons“,
“Global Notes“ and all other terms shall be construed accordingly.
(1) Diese nachrangige Garantie findet nur auf diejenigen
nachrangigen Teilschuldverschreibungen Anwendung, die
von der WestLB Netherlands oder der WestLB Curaçao an
oder nach dem Datum dieser nachrangigen Garantie begeben werden. Auf solche nachrangigen Teilschuldverschreibungen, die von der WestLB Netherlands oder der WestLB
Curaçao vor dem Datum dieser nachrangigen Garantie begeben wurden, findet weiterhin die nachrangige Garantie 2001
bzw. die im Einzelfall anwendbare frühere nachrangige Garantie Anwendung, und Bezugnahmen auf „nachrangige Teilschuldverschreibungen“, „Rückzahlungsscheine“, „Zinsscheine“, „Global-Teilschuldverschreibung“ sowie alle anderen Begriffe sind entsprechend zu verstehen.
(2) The Guarantor unconditionally and irrevocably guarantees to the holders of each Subordinated Note (which
expression shall include any Global Note (in temporary or
permanent form) representing Subordinated Notes), or the
Receipts or Coupons relating to it, now or at any time
hereafter issued by WestLB Netherlands or WestLB Curaçao
under the Programme the due and punctual payment of the
principal of, and interest on, the Subordinated Notes or the
Receipts or Coupons relating to them, and any other amounts
which may be expressed to be payable under a Subordinated Note or the Receipts or Coupons relating to it, in accordance with the Terms and Conditions of the Subordinated
Notes, as amended, supplemented or modified by the appli-
(2) Die Garantin übernimmt gegenüber den Inhabern jeder
nachrangigen Teilschuldverschreibung (dieser Begriff
schließt jede (vorläufige oder Dauer-)Global-Teilschuldverschreibung ein, die nachrangige Teilschuldverschreibungen
verbrieft) oder der dazu gehörigen Rückzahlungsscheine oder
Zinsscheine, die jetzt oder zu einem späteren Zeitpunkt von
der WestLB Netherlands oder der WestLB Curaçao aufgrund
des Programms begeben werden, die unbedingte und unwiderrufliche Garantie für die ordnungsgemäße und pünktliche
Zahlung von Kapital und Zinsen auf die nachrangigen Teilschuldverschreibungen oder die dazu gehörigen Rückzahlungsscheine und Zinsscheine sowie der etwaigen sonstigen Beträge, die unter einer nachrangigen Teilschuldver-
76
cable Pricing Supplement (as defined therein) (the “Conditions”), as and when the same shall become due in accordance with the Conditions and the performance of other
obligations of WestLB Netherlands or WestLB Curaçao under the Conditions (including, if applicable, the delivery of
underlying securities in the case of Credit Linked Notes).
schreibung oder unter den dazu gehörigen Rückzahlungsscheinen oder Zinsscheinen zahlbar sind, sowie für die Erfüllung sonstiger Verpflichtungen (einschließlich, falls anwendbar, der Lieferung von zugrundeliegenden Wertpapieren im
Falle von Teilschuldverschreibungen mit Kreditkomponente)
gemäß den durch das betreffende Pricing Supplement (wie in
den Anleihebedingungen definiert) angepassten oder ergänzten Anleihebedingungen der nachrangigen Teilschuldverschreibungen (die „Anleihebedingungen”), sobald diese Zahlungen oder die Erfüllung solcher Verpflichtungen den Anleihebedingungen gemäß fällig werden.
(3) The claims arising from this Subordinated Guarantee
with respect to the principal amount due under the Subordinated Notes (“Guaranteed Principal Claims”) are subordinated in the event of insolvency proceedings over the assets
of and liquidation of the Guarantor to the claims of all other
creditors of the Guarantor which are not also subordinated
and, in such event, payment of the Guaranteed Principal
Claims will not be made until all existing claims against the
Guarantor which are not subordinated have been satisfied.
The right to set off of the Guaranteed Principal Claims
against claims of the Guarantor shall be excluded. No contractual security is or will be provided for the Guaranteed
Principal Claims and any contractual security that may have
been provided in the past or will be provided in the future by
the Guarantor or a third party shall not secure the Guaranteed Principal Claims.
(3) Die Forderungen aus dieser nachrangigen Garantie hinsichtlich des unter den nachrangigen Teilschuldverschreibungen geschuldeten Nennbetrags (die „garantierten
Hauptforderungen”) sind im Falle der Liquidation der Garantin den Forderungen aller anderen Gläubiger der Garantin, die nicht ebenfalls nachrangig sind, nachgeordnet; in
einem derartigen Fall erfolgt die Zahlung der garantierten
Hauptforderungen erst, nachdem alle bestehenden nicht
nachrangigen Forderungen an die Garantin befriedigt worden sind. Das Recht auf Aufrechnung der garantierten
Hauptforderungen gegen Forderungen der Garantin wird
ausgeschlossen. Für die garantierten Hauptforderungen
wird derzeit oder in Zukunft keine vertragliche Sicherheit
gewährt; irgendeine derartige vertragliche Sicherheit, die
von der Garantin oder einem Dritten möglicherweise in der
Vergangenheit gewährt worden ist oder in Zukunft gewährt
werden wird, besichert nicht die garantierten Hauptforderungen.
Subsequently, the subordination provided for in the above
paragraph cannot be restricted nor the term of the Subordinated Guarantee shortened to a date prior to the maturity
of the Subordinated Notes. In accordance with § 10 paragraph (5a) of the Kreditwesengesetz (the German Banking
Act), a prepayment of the Guaranteed Principal Claims must
be refunded to the Guarantor notwithstanding any agreement to the contrary unless any of the statutorily defined
exceptions is applicable (liquidation of the Guarantor or
replacement of the principal amount of the Subordinated
Notes by other capital of at least equal status within the
meaning of the German Banking Act).
Der im vorstehenden Absatz geregelte Nachrang kann nicht
nachträglich beschränkt werden; die Laufzeit der nachrangigen Garantie kann nicht auf einen Termin vor Fälligkeit
der nachrangigen Teilschuldverschreibungen abgekürzt
werden. Gemäß § 10 Absatz (5a) Kreditwesengesetz ist eine
vorzeitige Rückzahlung der garantierten Hauptforderungen
der Garantin ohne Rücksicht auf entgegenstehende Vereinbarungen zurückzugewähren, sofern nicht eine der gesetzlich vorgesehenen Ausnahmen zutrifft (Liquidation der
Garantin oder Ersetzung des Nennbetrags der nachrangigen Teilschuldverschreibungen durch Einzahlung anderen,
zumindest gleichwertigen Kapitals im Sinne des Kreditwesengesetzes).
(4) Unless otherwise specified in the applicable Pricing
Supplement , all payments under this Subordinated Guarantee shall be made without any withholding or deduction
at source for, or on account of, any present or future taxes,
duties, assessments or governmental charges of whatever
nature (“Taxes”) imposed, levied, collected, withheld or
assessed by or within the Federal Republic of Germany or
any authority therein or thereof having power to tax, unless
such withholding or deduction is required by law. In that
event, the Guarantor shall to the fullest extent permitted by
law, pay such additional amounts as may be necessary in
order that each holder of any Subordinated Note, Receipt or
Coupon after deduction or withholding of such Taxes, will
receive the full amount then due and payable, provided that
no such additional amount shall be payable with respect to:
(4) Sofern in dem entsprechenden Pricing Supplement nichts
anderes vorgesehen ist, sind alle Zahlungen aufgrund dieser
nachrangigen Garantie ohne Einbehalt oder Abzug an der
Quelle von oder aufgrund von irgendwelchen gegenwärtigen
oder zukünftigen Steuern, Abgaben, Veranlagungen oder
staatlichen Gebühren gleich welcher Art („Steuern”), die
durch die oder in der Bundesrepublik Deutschland oder durch
eine zur Erhebung von Steuern ermächtigte Behörde der
Bundesrepublik Deutschland erhoben, auferlegt, eingezogen,
einbehalten oder veranlasst werden, zu leisten, es sei denn,
ein solcher Abzug oder Einbehalt ist gesetzlich vorgeschrieben. In diesem Fall wird die Garantin im vollen gesetzlich
zulässigen Umfang die zusätzlichen Beträge zahlen, die erforderlich sind, damit jeder Inhaber einer nachrangigen Teilschuldverschreibung, eines Rückzahlungsscheins oder Zinsscheins nach Abzug oder Einbehalt solcher Steuern den zu
dem betreffenden Zeitpunkt fälligen und zahlbaren Betrag in
voller Höhe erhält, wobei jedoch solche zusätzlichen Beträge
nicht zahlbar sind in bezug auf:
(i) any Subordinated Note, Receipt or Coupon held by
or on behalf of a Noteholder (a) who is for the relevant
tax purposes treated as a resident individual or corporation of the Federal Republic of Germany or (b) who is
able to avoid such withholding or deduction by satisfying any statutory requirements or by making a declaration of non-residence or other similar claims for exemption to the relevant tax authority but fails to do so or
(c) who is otherwise liable to such Taxes in respect of
such Subordinated Note, Receipt or Coupon by reason
of such holder being connected with the Federal Republic of Germany other than by the mere fact of his being
a holder of such Subordinated Note, Receipt or Coupon
or (d) unless otherwise specified in the applicable Pricing
Supplement, who is for the relevant tax purposes treated as a resident individual or corporation of another
Member State of the European Union or who is otherwi-
(i) eine nachrangige Teilschuldverschreibung oder
einen Rückzahlungsschein oder Zinsschein, die/der von
einem Inhaber einer Teilschuldverschreibung oder zugunsten eines Inhabers einer Teilschuldverschreibung
gehalten wird, welcher (a) für die Zwecke der betreffenden Steuergesetze als gebietsansässige natürliche oder
juristische Person in der Bundesrepublik Deutschland
angesehen wird oder (b) einen solchen Einbehalt oder
Abzug durch die Erfüllung von gesetzlichen Anforderungen oder eine Nichtansässigkeitserklärung oder einen ähnlichen Anspruch auf Befreiung gegenüber der
betreffenden Steuerbehörde vermeiden kann, solches
aber unterläßt oder (c) solchen Steuern auf diese nachrangige Teilschuldverschreibung oder den Rückzahlungsschein oder Zinsschein aufgrund anderer Beziehungen zur Bundesrepublik Deutschland unterliegt als
der bloßen Tatsache, daß er Inhaber dieser nachrangi-
77
se liable to such Taxes by reason of such holder being
connected with another Member State of the European
Union other than by the mere fact of his being the holder
of such Subordinated Note, Receipt or Coupon and such
Taxes arise pursuant to legislation or regulations introduced as a result of a directive of the European Union;
or
gen Teilschuldverschreibung oder des Rückzahlungsscheins oder Zinsscheins ist oder (d), sofern in dem
betreffenden Pricing Supplement nichts anderes vorgesehen ist, für die Zwecke der betreffenden Steuergesetze als gebietsansässige natürliche oder juristische
Person in einem anderen Mitgliedsstaat der Europäischen Union angesehen wird oder solchen Steuern
aufgrund anderer Beziehungen zu einem anderen Mitgliedsstaat der Europäischen Union unterliegt als der
bloßen Tatsache, daß er Inhaber dieser nachrangigen
Teilschuldverschreibung, dieses Rückzahlungsscheins
oder Zinsscheins ist, und solche Steuern aufgrund von
Gesetzen oder Verordnungen anfallen, die durch eine
Richtlinie der Europäischen Union eingeführt worden
sind; oder
(ii) any Subordinated Note, Receipt or Coupon presented for payment more than 30 days after the Relevant
Date (as defined below) except to the extent that the
holder of such Subordinated Note, Receipt or Coupon
would have been entitled to such additional amount on
presenting the same for payment on the last day of such
period of 30 days; or
(ii) eine nachrangige Teilschuldverschreibung, einen
Rückzahlungsschein oder Zinsschein, die/der mehr als
30 Tage nach dem Stichtag (wie nachstehend definiert)
zur Zahlung vorgelegt wird; dieses gilt nicht, soweit der
Inhaber Anspruch auf einen solchen zusätzlichen Betrag gehabt hätte, wenn er die nachrangige Teilschuldverschreibung oder den Rückzahlungsschein oder Zinsschein am letzten Tag dieser 30-Tage-Frist zur Zahlung
vorgelegt hätte; oder
or withholding; or
the Subordinated Notes, Receipts or Coupons are being
presented for payment effectively at the counter; or
(iv) Steuern, die nur deshalb abgezogen oder einbehalten werden, weil die nachrangigen Teilschuldverschreibungen, die Rückzahlungsscheine oder Zinsscheine
effektiv zur Einlösung am Schalter vorgelegt werden;
oder
(v) any Subordinated Note, Receipt or Coupon presented for payment in the Federal Republic of Germany; or
(v) eine nachrangige Teilschuldverschreibung, einen
Rückzahlungsschein oder einen Zinsschein, die/der in
der Bundesrepublik Deutschland zur Zahlung vorgelegt
wird; oder
(vi) jeden Einbehalt oder Abzug hinsichtlich einer Zahlung an eine natürliche Person, der aufgrund einer Richtlinie der Europäischen Union zur Besteuerung von Kapitaleinkünften, welche die Ergebnisse der Sitzung des
ECOFIN-Rats vom 26./27. November 2000 umsetzt, oder
aufgrund eines Gesetzes, das diese Richtlinie umsetzt,
mit ihr im Einklang steht oder verabschiedet wurde, um
diesen Einklang herzustellen, vorgenommen werden
muß, oder
(vii) any subordinated Note, Receipt or Coupon presented for Payment by or on behalf of a holder who would
have been able to avoid such withholding or deduction
by presenting the relevant Subordinated Note to another Paying Agent in a Member State of the EU.
(vii) eine nachrangige Teilschuldverschreibung, einen
Rückzahlungsschein oder Zinsschein, die/der durch
oder für einen Inhaber zur Zahlung vorgelegt wird,
wenn dieser Inhaber einen solchen Abzug oder Einbehalt durch Vorlage der betreffenden nachrangigen Teilschuldverschreibung bei einer anderen Zahlstelle in einem Mitgliedsstaat der EU hätte vermeiden können.
As used herein, “Relevant Date” in respect of any Subordinated Note or Receipt or Coupon relating to it means
the date on which such payment in respect thereof first
becomes due, except that, if the full amount of the moneys
payable has not been duly received by the Agent on or prior
to such date. It means the date on which, the full amount of
such moneys having been so received, notice to that effect
is duly given to the Noteholders.
Für die Zwecke dieser nachrangigen Garantie bedeutet
„Stichtag” in bezug auf eine nachrangige Teilschuldverschreibung oder einen dazugehörigen Rückzahlungsschein
oder Zinsschein den Tag, an dem eine solche Zahlung zuerst fällig wird. Wenn jedoch der Agent die volle Summe der
zu zahlenden Beträge nicht am oder vor dem jeweiligen
Fälligkeitstag ordnungsgemäß erhalten hat, dann ist der
Stichtag der Tag, an dem, nachdem die volle Summe der zu
zahlenden Beträge bei dem Agent eingegangen ist, dieses
den Inhabern von Teilschuldverschreibungen ordnungsgemäß mitgeteilt wird.
References herein to principal and/or interest shall be
deemed to include any additional amounts which may be
payable under this Clause (4).
Bezugnahmen in dieser nachrangigen Garantie auf Kapital
und/oder Zinsen sollen diejenigen zusätzlichen Beträge einschließen, die möglicherweise aufgrund dieser Bestimmung
(4) zahlbar sind.
(5) The obligations of the Guarantor under this Subordinated Guarantee (i) shall be separate and independent from
the obligations of WestLB Netherlands and WestLB Curaçao
under the Subordinated Notes or the Receipts or Coupons
(5) Die Verpflichtungen der Garantin aus dieser nachrangigen Garantie (i) sind losgelöst und unabhängig von den
Verpflichtungen der WestLB Netherlands und der WestLB
Curaçao aus den nachrangigen Teilschuldverschreibungen
78
relating to them, (ii) shall exist irrespective of the legality,
validity, binding effect or enforceability of the Subordinated
Notes or the Receipts or Coupons relating to them and (iii)
shall not be affected by any event, condition or circumstance of whatever nature, whether factual or legal, save the
full, definitive and irrevocable satisfaction of any and all
payment and performance obligations expressed to be assumed under the Subordinated Notes or the Receipts or
Coupons relating to them.
oder den dazu gehörigen Rückzahlungsscheinen oder Zinsscheinen, (ii) bestehen ohne Rücksicht auf die Rechtmäßigkeit, Gültigkeit, bindende Wirkung oder Durchsetzbarkeit
der nachrangigen Teilschuldverschreibungen oder der dazu
gehörigen Rückzahlungsscheine oder Zinsscheine und (iii)
werden nicht durch irgendein Ereignis, eine Bedingung
oder einen Umstand, seien sie tatsächlicher oder rechtlicher Natur, berührt, außer durch die volle, endgültige und
unwiderrufliche Erfüllung aller Zahlungs- und Erfüllungsverpflichtungen, die unter den nachrangigen Teilschuldverschreibungen oder den dazu gehörigen Rückzahlungsscheinen oder Zinsscheinen übernommen werden.
(6) The obligations of the Guarantor under this Subordinated Guarantee shall without any further act or thing being
required to be done or to occur extend to the obligations of
any Substituted Issuer which is not the Guarantor arising in
respect of any Subordinated Note or Receipt or Coupon
relating to it by virtue of an assumption of obligations
pursuant to Condition 14.
(6) Die Verpflichtungen der Garantin aus dieser nachrangigen Garantie erstrecken sich auch – ohne daß dazu eine
weitere Handlung vorgenommen wird oder ein Umstand
eintreten müßte – auf die Verpflichtungen einer Ersatzschuldnerin, bei der es sich nicht um die Garantin handelt,
hinsichtlich der nachrangigen Teilschuldverschreibungen
oder der dazu gehörigen Rückzahlungsscheine oder Zinsscheine, die aufgrund einer Übernahme von Verpflichtungen gemäß Nr. 14 der Anleihebedingungen entstehen.
(7) This Subordinated Guarantee and all agreements herein
contained constitute a contract in favour of the holders of
Subordinated Notes and Receipts and Coupons relating to
them from time to time as third party beneficiaries pursuant
to § 328(1) of the German Civil Code giving rise to the right
of each such holder to require performance of the obligations undertaken herein directly from the Guarantor and to
enforce such obligations directly against the Guarantor.
(7) Diese nachrangige Garantie und alle darin enthaltenen
Vereinbarungen bilden einen Vertrag zugunsten der Inhaber von nachrangigen Teilschuldverschreibungen und der
jeweils dazu gehörigen Rückzahlungsscheine und Zinsscheine als Drittbegünstigte gemäß § 328(1) BGB und geben jedem dieser Inhaber das Recht, die Erfüllung der
hierin eingegangenen Verpflichtungen direkt von der Garantin zu fordern und diese Verpflichtungen direkt gegenüber der Garantin durchzusetzen.
(8) Merrill Lynch International with which the agreements
herein contained are made does not act as fiduciary agent or
in any similar capacity for the holders of Subordinated
Notes or Receipts or Coupons relating to them.
(8) Die Merrill Lynch International, mit der die hierin
enthaltenen Verbindlichkeiten getroffen werden, ist nicht
als Treuhänderin oder in einer ähnlichen Funktion für die
Inhaber von nachrangigen Teilschuldverschreibungen oder
dazu gehörigen Rückzahlungsscheinen oder Zinsscheinen
tätig.
(9) Terms used and not otherwise defined herein shall have
the meanings attributed to them in the Conditions. The
Guarantor agrees that it will comply with and be bound by
those provisions contained in the Conditions which relate
to it.
(9) Die hierin verwendeten und nicht anders definierten
Begriffe haben die Bedeutung, die ihnen in den Anleihebedingungen zugewiesen werden. Die Garantin erklärt, daß
sie die sie betreffenden Bestimmungen der Anleihebedingungen einhalten wird und an sie gebunden ist.
(10) This Subordinated Guarantee is governed exclusively
by, and shall be construed in accordance with, the laws of
the Federal Republic of Germany. Place of performance and
place of jurisdiction shall be Düsseldorf.
(10) Diese nachrangige Garantie unterliegt ausschließlich
dem Recht der Bundesrepublik Deutschland und soll dementsprechend ausgelegt werden. Erfüllungsort und Gerichtsstand ist Düsseldorf.
(11) If any provision of this Subordinated Guarantee is or
shall become invalid in whole or in part, the other provisions
hereof shall remain in force. The invalid provision shall be
deemed substituted by a valid provision which accomplishes
as far as legally possible the economic purposes of the
invalid provision.
(11) Sollte eine Bestimmung dieser nachrangigen Garantie
ganz oder teilweise rechtsunwirksam sein oder werden, so
bleiben die übrigen Bestimmungen wirksam. Anstelle der
rechtsunwirksamen Bestimmung gilt eine wirksame Regelung, die den wirtschaftlichen Zwecken der rechtsunwirksamen Bestimmung soweit gesetzlich möglich Rechnung
trägt.
(12) This Subordinated Guarantee is written in the English
language and translated into the German language. The
English language version shall be legally binding and controlling in each and every respect, unless otherwise specified in the applicable Pricing Supplement.
(12) Diese nachrangige Garantie ist in englischer Sprache
abgefaßt und wird in die deutsche Sprache übersetzt. Sofern das betreffende Pricing Supplement nichts anderes
festlegt, ist die englischsprachige Version in jeder Hinsicht
rechtlich bindend und maßgeblich.
(13) The original copy of this Subordinated Guarantee shall
be delivered to, and kept by, Merrill Lynch International.
(13) Das Original dieser nachrangigen Garantie wird der
Merrill Lynch International ausgehändigt und von ihr verwahrt.
(14) Any holder of a Subordinated Note or the Receipt or
Coupon relating to it (being a “Noteholder” as that term is
defined in the Conditions) who holds through a Relevant
Clearing System may in any proceedings against the
Guarantor or to which such holder of a Subordinated Note
or Receipt or Coupon and the Guarantor are parties protect
and enforce in his own name his rights arising under this
Subordinated Guarantee on the basis of:
(14) Jeder Inhaber einer nachrangigen Teilschuldverschreibung oder des dazu gehörigen Rückzahlungsscheins oder
Zinsscheins (ein „Inhaber von Teilschuldverschreibungen”
gemäß der Definition in den Anleihebedingungen), der
diese/diesen über ein relevantes Abrechungssystem hält,
kann in jedem Rechtsstreit gegen die Garantin oder in
jedem Rechtsstreit, in dem dieser Inhaber einer nachrangigen Teilschuldverschreibung oder eines Rückzahlungsscheins oder Zinsscheins und die Garantin Partei sind, seine
Rechte aus der nachrangigen Garantie im eigenen Namen
auf der Grundlage wahrnehmen und durchsetzen, daß er:
79
(i) either evidence that he is the holder of the legal title
to the relevant Subordinated Notes held in such Relevant Clearing System or a statement issued by the Custodian with whom such Noteholder maintains a
securities account in respect of the Subordinated Notes
(a) stating the full name and address of the Noteholder,
(b) specifying the aggregate principal amount of the
Subordinated Notes credited to such securities account
on the date of such statement and (c) confirming that the
Subordinated Notes so credited to such securities account have been blocked in the name of the Noteholder
from which they will be unblocked only upon instructions from such Noteholder to such effect, together with
written notice to the Guarantor (or any person lawfully
acting on behalf of the Guarantor or in its place), and
bearing an acknowledgement of the Relevant Clearing
System;
(i) entweder beweist, daß er der Inhaber eines uneingeschränkten Eigentumsrechts an den betreffenden nachrangigen Teilschuldverschreibungen, die in dem relevanten Abrechungssystem verwahrt werden, ist, oder
eine Bestätigung einer Depotbank, bei der der Inhaber
von Teilschuldverschreibungen ein Wertpapierkonto unterhält, beibringt, und in der in bezug auf nachrangigen
Teilschuldverschreibungen (a) der vollständige Name
und die vollständige Adresse des Inhabers von Teilschuldverschreibungen angegeben wird, (b) der Gesamtnennbetrag der nachrangigen Teilschuldverschreibungen, die unter dem Datum der Bestätigung auf dem
Wertpapierkonto verbucht sind, bezeichnet und (c) bestätigt wird, daß die auf diesem Wertpapierkonto verbuchten nachrangigen Teilschuldverschreibungen im
Namen des Inhabers von Teilschuldverschreibungen
gesperrt sind und nur auf dementsprechende Anweisung des Inhabers von Teilschuldverschreibungen freigegeben werden, zusammen mit einer schriftlichen Mitteilung an die Garantin (oder eine Person, die rechtwirksam für die oder an Stelle der Garantin handelt)
versehen mit einer Bestätigung des relevanten
Abrechnungssystems;
(ii) a copy of such Subordinated Notes certified as being
a true copy by a duly authorised officer of the Relevant
Clearing System or the common depositary (if any),
without the need for production in such proceedings of
the actual records or the Subordinated Notes; and
(ii) eine durch einen ordnungsgemäß autorisierten Angestellten des relevanten Abrechnungssystems oder des
etwaigen Sammelverwahrers als wahre Kopie bestätigte Kopie dieser nachrangigen Teilschuldverschreibungen beibringt, ohne daß eine Vorlage der tatsächlichen
Unterlagen oder der nachrangigen Teilschuldverschreibungen nötig ist; und
(iii) a copy of this Subordinated Guarantee certified as
being a true copy by a duly authorised officer of Merrill
Lynch International, without the need for production in
such proceedings of this Subordinated Guarantee.
(iii) eine durch einen ordnungsgemäß autorisierten Angestellten der Merrill Lynch International als wahre
Kopie bestätigte Kopie dieser nachrangigen Garantie
vorlegt, ohne daß in dem Rechtsstreit diese nachrangige
Garantie vorgelegt werden muß.
For the purposes of the foregoing, “Custodian” means
any bank or other financial institution of recognised
standing authorised to engage in securities custody
business with which the Noteholder maintains a securities account in respect of the Subordinated Notes and
includes the Relevant Clearing System.
Für die Zwecke des Vorstehenden bedeutet „Depotbank” jede Bank oder jedes andere Finanzinstitut von
anerkanntem Ansehen, die/das berechtigt ist, das Wertpapierverwahrgeschäft zu betreiben, und bei der oder
dem der Inhaber von Teilschuldverschreibungen ein
Wertpapierkonto in bezug auf die nachrangigen Teilschuldverschreibungen unterhält; der Begriff „Depotbank” schließt das relevante Abrechnungssystem ein.
Düsseldorf/Münster, den 30. Mai 2003
Düsseldorf/Münster, 30th May, 2003
WESTLB AG
We accept the terms of the above Subordinated
Guarantee without recourse, warranty or liability.
Wir akzeptieren die Bestimmungen der vorstehenden
nachrangigen Garantie ohne Regreß,
Gewährleistung oder Obligo
30th May, 2003
30. Mai 2003
MERRILL LYNCH INTERNATIONAL
80
WestLB AG
– The Issuer or the Guarantor –
Establishment and Domicile
WestLB AG is a wholly owned subsidiary of Landesbank Nordrhein-Westfalen (“Landesbank NRW“) and is domiciled in Düsseldorf (Herzogstrasse 15, 40217 Düsseldorf) and Münster (Friedrichstrasse 1, 48145 Münster).
Pursuant to the “Gesetz zur Neuregelung der Rechtsverhältnisse der öffentlich-rechtlichen Kreditinstitute in
Nordrhein-Westfalen“ dated 2nd July, 2002 (the “Restructuring Law“), which became effective on 1st August,
2002, the public legal form of the former Westdeutsche Landesbank Girozentrale (“WestLB“) was changed into a
joint stock company (WestLB AG). On the same day and according to the Restructuring Law, the public mission
business of the former WestLB was generally separated from its competitive operations (the “Restructuring“):
–
On 1st August, 2002, a new public law institution under the name of Landesbank Nordrhein-Westfalen was
established under the same ownership as the former WestLB (Article 1 section 1 Restructuring Law).
–
The public functions and the Pfandbrief (mortgage bond) business of the former WestLB were transferred to
the newly created Landesbank NRW. The spin-off became effective retroactively per 1st January, 2002; as of
this date, all transactions of the spun-off operations were deemed to have been carried out for the account of
Landesbank NRW. The spin-off was based on 31st December, 2001 closing balance sheet of the former
WestLB. For the assets and liabilities spun off and transferred to Landesbank NRW, Landesbank NRW is the
universal legal successor (Article 1 section 2 Restructuring Law).
–
Pursuant to Article 1 section 6 of the Restructuring Law the shares in WestLB were transferred from its owners
to Landesbank NRW by way of a contribution in kind.
–
Finally WestLB’s public legal form was changed into a joint stock company under German law (Article 1
section 8 Restructuring Law). The conversion of WestLB into a joint stock company was completed with the
entry in the commercial registers of Düsseldorf (HRB 42975) and Münster (HRB 6400) on 30th August, 2002.
With the registration its name has changed to “WestLB AG“. Under German law, despite this change of legal
form, the former WestLB and WestLB AG have the same legal identity. All branches, representative offices and
foreign subsidiaries are maintained by WestLB AG. WestLB AG currently maintains branches in Berlin,
Cologne, Dortmund, Frankfurt, Hamburg, Hong Kong, Istanbul, London, Madrid, Milan, New York, Paris,
Shanghai, Singapore, Sydney, Tokyo and Toronto and representative offices in Bangkok, Belgrade, Caracas,
Chicago, Dubai, Houston, Jakarta, Johannesburg, Kiev, Los Angeles, Mexico-City, Mumbai/India, Nizhny
Novgorod, Peking, Prague, Santiago de Chile, Seoul, St. Petersburg, Taipeh and Zurich. It may establish
further branches and representative offices and close existing ones.
–
In addition, on 1st August, 2002, Westdeutsche Landesbausparkasse (“LBS“), a former division of WestLB
which conducted the business of a building and loan association, was spun off into a newly established financial institution under public law owned by the former owners of WestLB and became a legally separate entity
(Article 2 section 1 Restructuring Law). LBS became an independent public-law institution and, because the
savings banks associations in North Rhine-Westphalia saw LBS’s business as a strategic addition to their
portfolio, they acquired it soon afterwards.
81
Regional
Association of
the Rhineland
11.7%
Regional
Association of
Westphalia-Lippe
11.7%
State of North
Rhine-Westphalia
43.2%
Savings Banks
and Giro
Association of
the Rhineland
16.7%
Savings Banks
and Giro
Associatin of
Westphalia-Lippe
16.7%
Institutional Liability/Guarantor Liability
“Institutional Liability/
Guarantor Liability”
Landesbank NRW
INVESTITIONS-BANK NRW + Wfa
Public mortgage bond (Pfandbrief) business
Equity investments (LEG, ILB Brandenburg,
casino and lottery holdings)
100%
WestLB AG
Commercial banking activities
Central institution for the savings banks
Municipal banks functions
WestLB
Covered
Bond Bank
Westdeutsche
Immobilien
Bank
WestAM
WestLB
Systems
WestLB Int.,
Luxembourg
LB SchleswigHolstein
LB Rheinland-Pfalz
Since it has the same legal identity, WestLB AG is liable for all obligations of the former WestLB except those
which have been spun off to Landesbank NRW and LBS. Pursuant to Article 1 section 3 and Article 2 section 6
Restructuring Law, Landesbank NRW, WestLB AG and LBS are jointly and severally liable for all obligations of the
former WestLB incurred prior to 1st August, 2002 and due before and including 31st December, 2006. For
obligations of the former WestLB and WestLB AG incurred on and after 1st August, 2002, WestLB AG alone is
liable.
Legal Form
WestLB AG has legal capacity by virtue of its entry in the Commercial Register. It is a credit institution in the legal
form of a joint stock company under German law (Aktiengesellschaft).
Objects and Purpose
According to its statutes, WestLB AG conducts all types of banking business as well as complementary business
including the acquisition and holding of equity investments. It has the tasks of a central bank for the savings banks
and a municipal bank. As part of the savings bank organisation, the purpose also includes the development and
provision of bank products for savings banks and public-sector clients.
Business
As a German universal bank, WestLB AG provides commercial and investment banking services regionally, nationally and internationally to public, corporate and bank customers. As of 31st December, 2002, WestLB AG (group)
had total assets of approximately ¤ 265.6 billion.
WestLB AG also performs the functions of a municipal bank for the State of North Rhine-Westfalia and acts as the
central bank of the Sparkassen (savings banks) in the State of North Rhine-Westfalia. It conducts a comprehensive
range of wholesale banking business and has the power to issue bonds and notes with the exception of Pfandbriefe. In addition, WestLB AG acts as the clearing and depository bank for the savings banks in the State of North
Rhine-Westfalia. Internationally, the WestLB AG Group (the “Group“) operates through an extensive network of
banking subsidiaries, branches and representative offices to provide a range of financial services to its clients.
82
Liability for WestLB AG Obligations / Institutional Liability and Guarantor Liability
Under the current laws of Germany and the State of North Rhine-Westphalia, the owners of Landesbank NRW,
namely the State of North Rhine-Westphalia, the Landschaftsverbände Rheinland und Westfalen-Lippe (Regional
associations of the Rhineland and of Westphalia-Lippe), the Rheinischer Sparkassen- und Giroverband and Westfälisch-Lippischer Sparkassen- und Giroverband (Regional Associations of the savings banks in the Rhineland and
in Westphalia-Lippe) are jointly and severally liable for the obligations of WestLB AG (“Guarantor Liability“).
However, recourse to the owners of the Landesbank NRW is possible only in the event that the assets of WestLB
AG are insufficient to satisfy WestLB AG’s obligations.
A creditor will have a direct claim against the owners if the claims of the creditors have not first been satisfied out
of the assets of WestLB AG.
The owners of Landesbank NRW also have an obligation to maintain WestLB AG in a financial position which
enables it to carry out its functions. This obligation (“Institutional Liability“) requires the owners to provide funds
to WestLB AG that may be necessary to enable it to fulfil its functions and to meet its liabilities. Creditors of
WestLB AG do not, however, have a direct claim against the owners for the enforcement of this obligation.
In December 1999, the European Banking Federation lodged a complaint with the European Commission alleging
that the regimes of Guarantor Liability and Institutional Liability constitute illegal state aid in violation of the
European Community Treaty. On 17th July, 2001, there was a public announcement of an agreement in principle
between the European Commission, the Federal Republic of Germany and the German Länder, whereby a fouryear transition period had been agreed upon for the abolition of the Guarantor Liability and Institutional Liability.
Pursuant to this agreement and Article 1, section 11 of the Restructuring Law, the owners of Landesbank NRW
shall be liable for all obligations of WestLB AG agreed by 18th July, 2005. Liability for those obligations agreed by
18th July, 2001 shall be unlimited in time; liability for those obligations agreed thereafter, but at the latest by 18th
July, 2005, shall only apply to obligations whose maturity does not go beyond 31st December 2015. According to
the Restructuring Law the owners of Landesbank NRW shall immediately honour their obligations from Guarantor Liability vis-à-vis the creditors of obligations agreed by 18th July, 2005, as soon as they have stated, when
these liabilities come due, in due manner and in writing that the creditors of these liablities cannot be satisfied out
of the assets of WestLB AG. Until and including 18th July, 2005, the owners of Landesbank NRW shall ensure that
WestLB AG is able to honour its obligations (Institutional Liability).
Guarantors
The present guarantors and their shares in the capital of Landesbank NRW are as follows:
State of North Rhine-Westphalia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regional Association of the Rhineland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regional Association of Westphalia-Lippe . . . . . . . . . . . . . . . . . . . . . . . . . . .
Savings and Giro Association of the Rhineland . . . . . . . . . . . . . . . . . . . . . . .
Savings and Giro Association of Westphalia-Lippe . . . . . . . . . . . . . . . . . . . . .
in millions of Euro
–––––––––––––––––
%
–––––
215.8
58.8
58.8
83.3
83.3
–––––––
500.0
–––––––
–––––––
43.2
11.7
11.7
16.7
16.7
–––––
100.0
–––––
–––––
83
Share Capital
The share capital of WestLB AG amounts to Euro 950,500.000 and is divided into 9,505,000 shares. All shares are
registered shares.
To strengthen WestLB AG’s capital base, the former owners of Westdeutsche Landesbank Girozentrale resolved in
2002 to increase WestLB AG’s capital by ¤ 1.25 billion. The capital increase was carried out on 2nd January, 2003,
in the form of silent contributions. Repayment of the silent contributions will occur in five equal instalments, with
the amounts contributed being converted into shares of WestLB AG. In order for the increase to take place, the
shareholders of the Bank gave the Managing Board the authority to increase the Bank’s capital by issuing new
shares in exchange for cash or in-kind contributions. All increases are subject to Supervisory Board approval and
must be completed by 31st December, 2007. The silent contributions made comply with the statutory requirements for core capital as set forth in § 10 of the German Banking Act (KWG), as well as in the Basel Capital Accord.
The Group’s capital and reserves are as follows:
WestLB Group
31st Dec., 2002
¤ millions
–––––––––––––––––––––––––––
Subscribed capital
Capital reserves including:
– special reserves
pertaining to the Wfa
Reserves from retained earnings
– reserves required under
WestLB’s articles and bylaws
– other reserves
Group reserves
Equalising items for shares
of other shareholders
Equity capital pursuant to the
German Commercial Code (HGB)
Fund for general bank risks
Subordinated liabilities
Profit participation capital
Other capital and reserves
Total capital and reserves
84
WestLB GZ Group
31st Dec., 2001
¤ millions
–––––––––––––––––––––––––––
950.5
2,034.8
1,183.8
3,318.1
–
3,016.6
409.3
973.9
625.8
529.5
1,359.9
2,398
2.5
62.1
4,996.8
261.9
5,067.0
2,535.2
8,851.4
597.3
6,829.6
3,421.3
7,864.1
12,860.9
10,848.2
19,699.6
Capitalisation
The audited capitalisation of WestLB AG as at 31st December, 2002 is as follows:
31st
Dec. 2002 31st
Dec. 2002 ___________
1st Jan. 2002 ___________
1st Jan. 2002
___________
___________
(in millions of ¤)
Long–term–debt
Bonds and notes
Other Liabilities
Total long–term–debt
Short–term–debt
Total debt
Equity
– Paid in capital
– Capital reserves
– Retained earnings reserves required by WestLB’s Statutes
– Other reserves
– Total reserves from retained earnings
– Funds for general banking risks
– Participation certificates
– Subordinated liabilities
Total equity
– Contingent liabilities
– Irrevocable credit commitments
950,5
2.034,8
409,3
973,9
82,0
2.424,7
4.977,2
7.539,9
7.385,1
10.613,7
___________
18.153,6
12.395,1
___________
19.780,2
197.508,3
___________
215.661,9
193.630,2
___________
213.410,4
950,5
2.034,8
1.383,2
82,0
2.424,7
4.977,2
___________
11,852,4
14.756,0
74.925,7
950,5
2.034,8
409,3
1.583,9
82,0
2.425,7
5.347,2
950,5
2.034,8
1.993,2
82,0
2.425,7
5.347,2
___________
12.833,4
17.279,2
91.051,7
From 1st January, 2003 to 16th May, 2003, WestLB AG raised the amounts of EUR 2,800,000,000.–, USD 112,000,000.–, GBP
100,000,000.– and HKD 90,000,000.– through the issues of Floating Rate Notes and Fixed Rate Notes with maturities ranging
from 1 to 10 years.
Save as disclosed above, there has been no material change in the capitalisation of the Issuer since 31st December, 2002.
85
Participations
There is currently only one participation within WestLB Group with a book value of more than 10 per cent, which
is TUI AG, Hanover, Germany.
TUI AG’s activities are mainly concentrated in tourism and logistics.
WestLB holds about 31.4 per cent of the capital of TUI AG through GEV Gesellschaft für Energie- und Versorgungswerte, which is wholly owned by WestLB.
The subscribed capital of TUI Group amounted to P455.1m, as of 31st December, 2002. Total capital amounted to
¤2,417m as of 31st December, 2002. Profit or ordinary activities before depreciation on goodwill was
¤136.9m as of 31st December, 2002.
For the business year ended 31st December, 2002 TUI AG’s profit available for distribution totalled P137.5m,
representing a dividend of P0.77 per share.
For WestLB Group this resulted in a pre-tax profit of P43.0 m.
Executive Bodies of WestLB AG
The executive bodies of WestLB AG are the Supervisory Board, the General Meeting and the Managing Board.
Supervisory Board
The Supervisory Board consists of 20 members. Ten members have been appointed by Landesbank NRW in its
capacity as sole shareholder of WestLB AG. The other members are employee representatives appointed in accordance with the Codetermination Act of 4th May, 1976. The Supervisory Board supervises the conduct of business
by the Managing Board of WestLB AG.
Delegated by Landesbank NRW:
Dr Bernd Lüthje, Chairman of the Managing Board, Landesbank NRW, Düsseldorf/Münster (Chairman of the
Supervisory Board)
Dr. Erich Bauer, Chief Executive Manager, TMD Friction Holding GmbH, Leverkusen
Jean-Pascal Beaufret, Chief Financial Officer, Alcatel, Paris
Dr. Karlheinz Bentele, President, Savings Banks and Giro Association of the Rhineland, Düsseldorf
Dr. Rolf Gerlach, President, Savings and Giro Association of Westphalia-Lippe, Münster
Heinz-Peter Krämer, Chairman of the Managing Board, Kreissparkasse Köln, Cologne
Dr. Siegfried Luther, Vice-Chairman of the Managing Board, Bertelsmann AG, Gütersloh
Hartmut Mehdorn, Chairman of the Managing Board, Deutsche Bahn AG, Berlin
Udo Molsberger, Director, Regional Association of the Rhineland, Cologne
Dr. Hans-Ulrich Predeick, Erster Landesrat, Regional Association of Westphalia-Lippe, Münster
Employee representatives:
Thorsten Ellwanger, Assistant Vice President, WestLB AG, Hamburg
Horst-Wolfgang Klophaus, Authorised Signatory, WestLB AG, Düsseldorf
86
Gerd-Uwe Löschmann, Assistant Vice President, WestLB AG, Düsseldorf
Manfred Matthewes, Bank Employee, WestLB AG, Düsseldorf
Heinz-Günter Sander, Bank Employee, WestLB AG, Düsseldorf
Rainer Schmitz, Director, WestLB AG, Düsseldorf
Elisabeth Weber, Bank Employee, WestLB AG, Düsseldorf
Bernd Fiegler, ver.di Vereinte Dienstleistungsgewerkschaft, Düsseldorf
Franz-Georg Schröermeyer, ver.die Vereinte Dienstleistungsgewerkschaft, Münster
Christiane Stascheit, ver.di Vereinte Dienstleistungsgewerkschaft, Düsseldorf
After the close of the financial year, the members of the Supervisory Board receive an adequate remuneration
determined by a resolution of the General Meeting.
General Meeting
The ordinary General Meeting is held within the first eight months of each financial year. It is called by the
Managing Board and held at the domicile of the company. The General Meeting resolves on all matters assigned
to it by law or by the statutes. A quorum will be constituted if more than 50 per cent. of the share capital is
represented. Resolutions are taken by a simple majority of the votes cast, unless a higher majority is mandatorily
required by law or by the statutes.
Managing Board
The Managing Board represents WestLB AG in court and out of court. It has not less than two and not more than
eight members. The Chairman of the Managing Board and the other members of the Managing Board are appointed by the Supervisory Board. Resolutions of the Managing Board are taken by a simple majority of the votes cast.
In the case of an equality of votes, the Chairman will have the casting vote. WestLB AG is represented by two
members of the Managing Board or by one member of the Managing Board together with a holder of a general
commercial power of representation (Prokurist).
The members of the Managing Board are at present:
Hans-Jürgen Sengera, Chairman of the Managing Board
Dr. Adolf Franke
Klaus-Michael Geiger
Dr. Manfred Puffer
Robert Restani
Dr. Johannes Ringel
Gerhard Roggemann
Andreas Seibert
The members of the Managing Board may be reached at the address of WestLB AG.
87
Annual Accounts and Annual Report
The financial year is the calendar year. WestLB AG prepares an annual report within the first eight months of each
year.
Notices
All notices of WestLB AG are published in the German Federal Gazette (Bundesanzeiger).
Employees
As at 2nd January, 2003, WestLB AG had 5,896 employees.
Auditors
PwC Deutsche Revision Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Moskauer Strasse 19, 40227 Düsseldorf, Federal Republic of Germany were the auditors of WestLB AG for the financial year ended 31st December,
2002 and of the former Westdeutsche Landesbank Girozentrale for the financial years ended 31st December, 2001
and 31st December, 2000, respectively. The above auditors have issued, in each case, an unqualified audit report.
88
WestLB AG Group Annual Accounts for 2002
Statement of Financial Condition
Balance Sheet
Statement of Income
Statement of Changes in Shareholders’ Equity
Notes to the Annual Accounts
89
WestLB AG Group Statement of Financial
Condition at December 31, 2002
WestLB Group
WestLB AG Group consists of WestLB AG Düsseldorf/Münster together with WestLB’s
242 affiliated companies (89 of which are consolidated) and one jointly managed company
with 10 subsidiaries.
WestLB AG, as the legal successor to Westdeutsche Landesbank Girozentrale, continues
to dominate the business activities of the WestLB Group; in terms of total assets before
consolidation, WestLB AG accounts for approximately 82.7%, while the proportionate
assets of the pro-rata consolidated jointly managed company account for 2.3%; Group
subsidiaries which are majority-owned by WestLB AG account for 15.0%.
Substantial changes can be noted in total consolidated assets as compared to December 31,
2001. This is due to the division of Westdeutsche Landesbank Girozentrale, as well as
the first-time inclusion of the Landesbank Rheinland-Pfalz and Landesbank SchleswigHolstein Groups as associated companies; previously, the Landesbanks were consolidated
on a pro-rata basis.
With the founding of WestLB Covered Bond Bank plc., Dublin, the Group has
strengthened its position in purchasing claims and securities of public-law debtors, as
well as refinancing these claims and securities through the issue of covered bonds.
WestLB AG Group’s revised strategy in Latin America took the form of restructuring the
Brussels-based BEAL Group and forming Banco WestLB do Brasil, São Paulo, to handle
BEAL’s Brazilian operations.
The following chart depicts the major companies of the WestLB AG Group and their
share in total consolidated assets:
90
COMPOSITION OF THE WESTLB GROUP
WestLB AG,
Düsseldorf/Münster
WestLB International,
Luxembourg
Total Assets
WestLB
Group
Total Assets
WestLB
Group
Changes
Dec. 31, 2002
to
Total Assets
WestLB GZ
Group
Dec. 31, 2002
€ billions
Jan. 1, 2002
€ billions
Jan. 1, 2002
in %
Dec. 31, 2001
€ billions
238.3
237.7
0.3
325.0
15.3
15.4
– 0.6
15.4
Westdeutsche
ImmobilienBank, Mainz
(Group, pro rata)
8.0
8.2
– 2.4
8.2
WestLB Ireland, Dublin
4,6
4.3
7.0
4.3
WestLB Covered Bond Bank,
Dublin
1.8
0.0
–
0.0
BEAL, Brussels
1.6
4.2
– 61.9
4.2
WestLB (Italia) Finanziaria,
Milan
1.4
1.2
16.7
1.2
Banco WestLB do Brasil,
São Paulo
1.2
0.0
–
0.0
Landesbank
Schleswig-Holstein, Kiel
(Group, pro rata; incl.
Hamburgische Landesbank)
0.0
0.0
–
55.8
Landesbank Rheinland-Pfalz,
Mainz (Group, pro rata)
0.0
0.0
–
26.2
11.8
11.9
– 0.8
12.0
Other Banking Group
companies
Boullioun Group
2.8
2.7
3.7
2.7
12.4
12.7
– 2.4
13.2
Consolidations
– 33.6
– 34.2
– 1.8
– 36.3
WestLB Group
265.6
264.1
0.6
431.9
Other Group companies
91
The New WestLB AG
WestLB AG came into being after its official formation on August 1, 2002, and subsequent
registration in the commercial registers of Düsseldorf and Münster on August 30, 2002.
For purposes of tax and commercial law, the establishment of the new WestLB AG as a
German stock corporation was backdated to January 1, 2002.
Based on the desire to make a clear separation between the public-sector operations
and commercial business of Westdeutsche Landesbank Girozentrale (WestLB GZ) and
to focus more closely on the business segments and functions of the Bank, WestLB was
divided into two legally separate institutions, the public-law Landesbank NRW and the
private-law WestLB AG, when the Act on Redefining the Legal Status of Public-Law
Banking Institutions in North Rhine-Westphalia (Gesetz zur Neuregelung der Rechtsverhältnisse der öffentlich-rechtlichen Kreditinstitute in Nordrhein-Westfalen) went into
effect on August 1, 2002. At that time, WestLB AG became a wholly owned subsidiary
of Landesbank NRW. LBS became an independent public-law institution and, because
the savings banks associations in North Rhine-Westphalia saw LBS’s business as a
strategic addition to their portfolio, they acquired it soon afterwards.
In addition to its function as a municipal bank and central institution for the savings
banks, the new WestLB will continue to concentrate on its strengths as an internationally
operating European wholesale bank for companies, banks and institutional investors.
To this end, the private-law WestLB AG now houses all commercial banking activities,
except for the mortgage bond (Pfandbrief) business. Such activities include commercial
and investment banking, as well as the equity investments in the Landesbanks of
Rhineland-Palatinate and Schleswig-Holstein, and in Westdeutsche ImmobilienBank.
All foreign subsidiaries, as well as branches and representative offices, will remain part
of WestLB AG. In accordance with its articles and bylaws, WestLB AG also houses all
municipal bank functions and the functions related to its role as a central institution for
the savings banks. WestLB AG’s registered office is in Düsseldorf and Münster.
92
THE FUTURE STRUCTURE OF WESTLB
– Implementation of the Parent-Subsidiary Model –
Regional
Association of
the Rhineland
11.7%
Regional
Association of
Westphalia-Lippe
11.7%
State of North
Rhine-Westphalia
43.2%
Savings Banks
and Giro
Association of
the Rhineland
16.7%
Savings Banks
and Giro
Association of
Westphalia-Lippe
16.7%
Institutional Liability/Guarantor Liability
“Institutional Liability/
Guarantor Liability”
Landesbank NRW
INVESTITIONS-BANK NRW + Wfa
Public mortgage bond (Pfandbrief) business
Equity investments (LEG, ILB Brandenburg,
casino and lottery holdings)
100%
WestLB AG
Commercial banking activities
Central institution for the savings banks
Municipal bank function
WestLB
Covered
Bond Bank
Westdeutsche
Immobilien
Bank
WestAM
WestLB
Systems
WestLB Int.,
Luxembourg
LB SchleswigHolstein
LB Rheinland-Pfalz
All of WestLB’s former public-sector business is concentrated in Landesbank NRW, one
of the largest banks of its kind in Germany. Landesbank NRW is owned by the former
guarantors of WestLB GZ. Their equity interests in the new entity are in proportion to
their former holdings in WestLB GZ.
In its function as state and municipal bank, Landesbank NRW is responsible for
supporting its owners in important tasks in the structural policy field. It houses the
activities of INVESTITIONS-BANK NRW (IB NRW), Wohnungsbauförderungsanstalt
NRW (Wfa) and the public mortgage bond (Pfandbrief) business.
In addition, Landesbank NRW’s holdings in the public realm are pooled in an Equity
Investments business unit. Such holdings include Investitionsbank des Landes
Brandenburg (ILB), Landesentwicklungsgesellschaft NRW (LEG), the casino and lottery
holdings, and the structural policy investments of INVESTITIONS-BANK NRW and the
equity investment in WestLB AG.
93
EU Proceedings
European Court Overturns Commission Decision of 1999
The recent history of WestLB has been characterised not only by the challenges posed
by the market, but also by the questions raised about the integration of the Wohnungsbauförderungsanstalt (Wfa), as well as about institutional and guarantor liability. As
Germany’s largest and most international Landesbank, WestLB has been the centre of
attention – often as a representative of the entire public-law financial sector – in the
struggle to settle the controversy over key issues facing the European banking market.
In 1992 the State of North Rhine-Westphalia integrated the Wohnungsbauförderungsanstalt
(Wfa) into WestLB as a contribution in kind, a move which brought WestLB roughly
€ 2 billion in additional liable capital. This capital was a key factor in WestLB’s growth
and the long-term increase in WestLB’s value in the nineties. The Federal Banking
Supervisory Office and the Directorate-General of the European Commission responsible
for banks expressly upheld the recognition of Wfa’s assets as qualified contributions
towards WestLB’s capital adequacy. Later on, some of the other federal states took
similar measures for their Landesbanks.
In 1994 Germany’s Federal Association of Private Banks (BdB) filed a complaint with
the European Commission which challenged the remuneration for the Wfa capital.
Their complaint resulted in the Commission’s decision of 1999 that the integration
of Wfa was to be regarded as impermissible aid. The sole basis of the Commission’s
decision was that the remuneration for the Wfa integration was too low.
The German Federal Government, State of North Rhine-Westphalia and WestLB filed
appeals against the Commission’s decision with the European Courts, in which they
argued that the Commission’s decision was not proper from a business standpoint
or from the standpoint of the letter of the law and the laws on state aid. A number of
analyses and reports from economic and tax experts supported their view.
Nevertheless, the Bank had no choice under European law but to accept and implement
the Commission’s decision, regardless of the appeals filed with the European Courts. The
Bank decided to assign an added portion of its increase in value since the Wfa integration
to the State of North Rhine-Westphalia. The European Commission found this form of
implementation unacceptable and subsequently filed suit with the European Court of
Justice against the Federal Republic of Germany. The basis of the Commission’s claim
was Germany’s incorrect transposition into national law of an EU decision.
The European Court of Justice handed down its ruling in the matter of transposition
on December 12, 2002. Technically, the Federal Republic of Germany did not prevail.
However, the Court of Justice also ruled that a transposition involving no cash was
fundamentally compatible with Community law. This was a key point where WestLB
and the European Court of Justice agreed, namely that non-cash solutions were
permissible.
94
In a decision dated March 6, 2003, the European Court ruled on the crux of the
controversy surrounding the Wfa integration, i. e. whether the contribution of Wfa’s capital
and the remuneration for such contribution should be regarded as impermissible state
aid.
Here, the Court held that the decision of the European Commission in 1999 was invalid,
because the Commission did not give sufficient reasons with respect to the 12% base
rate of return and 1.5% risk premium it alleged should have been the basis of the
remuneration.
Since both of these parameters were of paramount importance to the economic analysis
underlying the Commission’s strategy, the Court was unable to make any definitive
judgment on the reasonableness of the Wfa remuneration.
However, the Court also explained that it was not permitted to substitute its own
economic analysis for the Commission’s, and by doing so, afforded the Commission
considerable leeway in the economic points of the matter at hand, points which are
taken out of the realm of the Court’s judgement as a result.
Therefore, it is to be expected that the Commission will follow the standard procedure
in such cases and issue a new decision, since its original decision was overturned.
Elimination of Guarantor Liability and Institutional Liability
Separately from the two proceedings described above, the European Banking Association
filed its own complaint with the European Commission, the goal of which was to have
institutional liability and guarantor liability for public-law banks recognised as state aid
and held to be at odds with European competition law. The Commission agreed and
demanded that the Federal Republic of Germany eliminate these liability mechanisms.
In order to protect the public-law banks from the ongoing pressure of lengthy court
battles and to keep the market from suffering as a result, WestLB reached an out-of-court
settlement with the Commission. The settlement provides for the continued existence
of public-law banks; however, after a transitional phase ending on July 18, 2005,
institutional liability and guarantor liability will be eliminated. The new liability structures
taking their place will be more akin to the relationship between a shareholder and a
corporation organised under private law.
The guarantors of public-law banks will retain the right to provide their institutions
with capital, but they will have to do so under prevailing market terms in order to
comply with European aid law.
95
The rules and transitional periods set forth in the understanding reached with the
Commission are as follows:
All liabilities incurred by July 18, 2001 remain fully covered by institutional and guarantor
liability until the time they mature. For creditors of banks that were supported by
institutional and guarantor liability, such as WestLB AG, this means that there will be
no changes for liabilities made by the July 18, 2001 deadline (i.e. these claims are
grandfathered in).
Institutional liability and guarantor liability will remain in effect in their present form
during the transitional period, which lasts from July 19, 2001, through July 18, 2005.
Any liabilities incurred during this transitional period are completely covered by
guarantor liability so long as they mature by December 31, 2015.
With respect to these liabilities and up until the time that all such liability items have
matured, the guarantors will completely satisfy the obligations arising from their
guarantor liability, as soon as they have properly determined and set forth in writing
that the creditors of such liabilities cannot be satisfied from the respective institution’s
assets. This explicitly includes the possibility of servicing debts precisely at the same
time they fall due. The giving of a notice as normally required under aid law will not be
necessary.
The mandatory rules and regulations have been established in the applicable state
laws.
Development in the Year Under Review
An extremely tough market environment adversely affected WestLB Group’s operating
result in the year under review, driving it down 50.8% to € 366 million. A particular
indicator of the markets’ weakness was the decline in net interest income. Significant
cost savings were achieved in personnel and operating expenses. However, considerable
restructuring expenses had a negative impact on results.
Due to the weak economy, the aftermath of accounting scandals and the slump on the
international financial markets, risk provisions and the result of evaluation increased from
€ 566 million to € 1,946 million; this includes provisions set aside in connection with risks
that became apparent in early April 2003. WestLB Group’s net loss for the year of € 1,730
million was offset with funds from Group reserves and reserves of WestLB AG.
96
Economic Setting
2002 was the second year in a row to pose formidable challenges to the financial markets.
Credit business in Germany and Europe faced extreme consolidation pressure, and
international wholesale banks in particular posted dramatic losses in their earnings.
While the world economy made a speedier and even stronger (at least initially) recovery
from the sharp downturn in 2000/2001 than was generally expected following the
terrorist attacks of September 11, 2001, a broad-based improvement did not materialise.
Instead, in the second half of the year the growing momentum already started to slow
noticeably and concern about a global recession with deflationary tendencies mounted.
At a yearly average of 2.75%, growth in the gross world product was only slightly
higher than in the previous year. At 0.2% and 0.8% respectively, the growth rates in
Germany and the euro area were even lower than in 2001.
In 2002 the United States emerged from the mild recession, but the basis for the
recovery was narrow and the recovery itself has been very unstable. Periods in which
the economy picked up were quickly followed by periods of weakness. Nevertheless,
the U.S. gross domestic product averaged growth of 2.4% for the year, exceeding GDP
growth in Western Europe and Japan by a substantial margin. However, the overall
economic imbalances increased perceptibly. The U.S. budget deficit grew to more than
3.0% of the country’s gross domestic product, while the current account deficit climbed
to 4.75%.
The recent downslide in stock prices has not helped matters; the crisis of confidence in
the financial markets, which, now three years old, is the longest and most widespread
in post-war history, was fuelled by the accounting scandals of some major corporations
and the increasing likelihood of military intervention in Iraq. In addition, doubts about
the effectiveness of monetary policy decisions grew. The cumulative effect of all this
bad news was to dampen the mood among companies and private households and to
cripple economic activity around the globe.
In response to these developments, the central banks cut interest rates even further. The
key interest rates in the U.S. and Europe are now at all-time lows. The same holds true
for the yields on government bonds. Government bonds profited from investors’ desire
to flee to save havens, but their yields dropped noticeably more than the yields on
corporate bonds.
Future developments in the world economy and international financial markets will
depend in large measure on how the conflict with Iraq is resolved. If conditions are
favourable, the risk premium on oil prices will disappear and the price for a barrel of
crude will drop to US$ 20 or less. WestLB believes that such a drop would trigger a
turn of events on the stock markets and thus cause a noticeable improvement in the
97
world economic climate. In this kind of environment, the exceptionally expansionary
moves in monetary policy around the world would be likely to gain in effectiveness.
However, as long as the political future of Iraq remains uncertain, the economy and
financial markets will remain hard-hit.
Business Development
The key course set by the Bank in 2002 was the successful implementation of WestLB’s
future structure, with the division of WestLB GZ into the independent institutions
Landesbank NRW, LBS Westdeutsche Landesbausparkasse and WestLB AG. Running
parallel to the Bank’s restructuring is a comprehensive programme on risk-return
management for the years 2002 and 2003. In the year under review, the programme’s
main goal was to reduce costs and increase efficiency within the Bank. In keeping with
its strategic orientation as a municipal bank and central institution for the savings
banks, WestLB also stepped up its cooperation with the savings banks and pressed
ahead with the business model of operating as a major wholesale bank.
The pace of personnel reductions, which encompasses the elimination of 1,500 jobs,
was accelerated, and final implementation of the Group’s objectives has been brought
forward from 2004 to 2003. WestLB came significantly closer to achieving its goal in
the year under review. The number of employees in the Group declined by 596 to 9,910,
while personnel expenses decreased by 10.0% to € 1,218 million. A reduction in IT
expenses, among other things, helped generate savings in the area of operating expenses.
To supplement the cost-saving measures already in place, the Bank also introduced
a programme to cut back on other operating expenses. This programme should result
in additional significant savings.
Given the continued weakness of the market, cost-saving measures also affected the
equities and investment banking business of WestLB Panmure. The goal of reducing
the cost base by 16% was met and exceeded in 2002. However, because the market
remains weak, it will be necessary to take additional measures in 2003.
The Bank trimmed its domestic branch network by closing the branches in Bielefeld and
Essen. By centralising back office operations and revamping domestic loan processing,
it also made the network substantially more cost-efficient. A review of the Bank’s foreign
branch network led to the closing of the branch in Izmir, with the Istanbul Branch now
handling that business. The Bank also worked on centralising other functions, including
certain trading and funding activities.
98
WestLB’s registered office is in Düsseldorf and Münster. In Germany, WestLB maintains
branch offices in Berlin, Dortmund, Frankfurt am Main, Hamburg and Cologne. Elsewhere
in Europe, the Bank is supported by branches in Istanbul, London, Madrid, Milan and
Paris. Outside Europe, customers are serviced by offices in Hong Kong, New York,
Singapore, Shanghai, Sydney, Tokyo and – as of January 2003 – Toronto. There are
representative and sales offices in other major financial centres.
WestLB’s business in South America has undergone restructuring, with the Bank
acquiring Banco WestLB do Brasil S.A. from its subsidiary BEAL. The strategy of
handling business in Argentina through a branch of BEAL is being abandoned. In future,
customer service in the region will be handled by a representative office in Buenos
Aires.
The Clients business group was reorganised and clients were reassigned to new
customer groups. The strategy of sub-dividing Western European corporate clients
into industry and sector groupings will remain intact.
As planned, the domestic private banking business was sold to a private bank as of
April 1, 2002. As part of its strategic repositioning, WestLB had decided to withdraw
from the private banking business altogether. The securities account business for other
private clients was closed as of December 31, 2002, and account management for
private customers will end on June 30, 2003. The sale of WPS Bank to North RhineWestphalia’s two savings banks associations was also part of WestLB AG’s new strategic
focus.
In order to strengthen its market position in core businesses, WestLB has dovetailed
various business units with its special finance business. The Global Structured Finance
business unit and the Asset Backed Securities unit have been grouped together in a
new business unit entitled Global Specialised Finance. GSF also houses the commodity
finance and forfaiting businesses. Credit derivatives operations were transferred to the
Global Financial Markets business unit. Moreover, it was decided to concentrate the
principal finance business in a separate business unit. Overall, these changes are
designed to improve clients’ access to products and to create additional synergies.
The founding of Dublin-based WestLB Covered Bond Bank was in response to the rapid
growth experienced on the European market for secured bonds. The Covered Bond
Bank will function as a centre of expertise for government financing, including savings
bank refinancing. Irish covered bonds offer investors and issuers an attractive alternative
to German mortgage bonds (Pfandbriefe). The new bank’s first issue is expected to
take place within the first six months of 2003.
99
As the central institution for the savings banks, WestLB will step up its collaborative
efforts with the savings banks. To that end, the Bank has signed a framework agreement
with the savings banks in North Rhine-Westphalia that sets forth their future cooperation
in the area of product offerings and joint acquisition activities.
In 2003 the Bank will continue with its restructuring and strategy measures and
will finalise its corporate policy strategy for the period following the elimination of
institutional and guarantor liability.
Environmental Protection as a Management Task
WestLB Group is aware of its responsibility to society and the environment and
conducts its business in accordance with the goals of sustainable development. By
signing the United Nations Environment Programme’s (UNEP’s) Statement by Banks
on the Environment and Sustainable Development at the beginning of 2002, one of the
promises that WestLB made was to comply with all regional, national and international
environmental requirements applicable to its business activities and services. For example,
all finance commitments for projects that impact the environment are extensively tested
for their compliance with all official environmental protection guidelines. Environmental
criteria are also included in the Bank’s credit risk strategy, as well as the credit ratings
given to customers. Before WestLB agrees to provide financing for international energy
projects, the recipients of the financing must not only show their compliance with the
applicable national laws on environmental protection; they must also demonstrate
compliance with the environmental and social standards established by the World Bank.
WestLB offers its customers proprietary products and research on socially responsible
and environmentally friendly investment strategies. As the first underwriter to
do so, WestLB issued certificates on the recently formed Dow Jones Euro STOXXSM
Sustainability Index in April 2002. The index comprises Europe’s leading companies
in terms of sustainability principles. When ÖKO-TEST magazine compared the
sustainability and environmental investment products available on the market in
its February 2003 issue, WestLB’s certificates were ranked first.
The WestLB foundation Zukunft NRW (The Future of North Rhine-Westphalia) is
spearheading efforts towards change with targeted promotions and projects, particularly
those aimed at protecting the environment. The goal of the AKWA 2100 project is to
find alternatives to municipal water supply and sewage disposal arrangements by
sensitising decision makers and other affected parties to the need for a long-term
strategy on developing environmentally sound urban infrastructure systems for water.
The goal of the Kälte aus Wärme (Cold out of Heat) project is to find a way to use
waste heat or heat generated by solar power to produce cold in a way that could save
resources and protect the environment.
100
The Group-wide Guidelines for Environmentally Friendly and Sustainable
Development, which form the basis of the Bank’s environmental management system,
are an expression of the Bank’s commitment to its social responsibility. One important
aspect of these guidelines is environmental protection within the Group. The Bank has
regularly prepared environmental responsibility reports on its operations since 1997.
These reports give an account of all of WestLB’s environmentally relevant data, which
are captured, documented and evaluated in accordance with uniform standards. In
addition, business processes are critiqued on the basis of environmental factors and the
results are used to set goals and develop measures aimed at reducing the consumption
of resources within the Group. The environmental responsibility report published in
2002 on the Bank’s 2001 operations complied with the Federal Environmental Ministry’s
requirements for qualified environmental responsibility reports and is being updated.
WestLB also promotes environmental protection within its ranks by offering information
and training seminars to employees.
Employees
The foundation for WestLB Group’s success is to be found in its highly skilled employees,
who perform the demanding tasks of an internationally operating bank with dedication
and creativity. In order to support the employees, WestLB offers a wide array of personnel
development tools.
Personnel Development Tools
In the context of the restructuring which has taken place, WestLB has incorporated
a three-tier support programme called Managing the Transition into its personnel
development programme. The programme contains modules on advice, training and
systems/tools. Through change, project and process management, the Bank is supporting
the business groups with sets of measures designed to help them with everything from
conducting workshops and holding training seminars to managing projects.
The e-learning application BEST@WestLB has been available to Bank employees since
its global roll-out in December 2002. In the year under review, training modules on
investment banking and global financial markets were successfully introduced. For
2003 additional product training modules are being developed.
In addition to the content offered through BEST@WestLB, employees have access to
the Bank’s regular training programme, which is tailored to meet their needs and takes
into account the international scope of the Bank, particularly in terms of product training.
Employees are supported in their personal and professional development with a number
of additional internal and external training opportunities, including language, behaviour
and management seminars.
101
Promoting Young Talent and Higher Qualification
Promoting and training young talent is a cornerstone of WestLB’s personnel policy. As
of the end of 2002, the Bank was training 153 young persons to become bankers, office
communications staff, computer specialists and graduates in business administration.
The plan is to offer as many apprenticeship training places in 2003 as were offered in
2002.
In the year under review, 146 employees took advantage of ongoing training
opportunities to enhance their professional qualifications, an increase of 6.5% over
the previous year.
Equal Opportunities and Diversity: Harnessing Potential
Promoting equal opportunities in the workplace is an express goal of WestLB’s
personnel work and is intended to enable the Bank to tap the potential of qualified
young employees more effectively. Nearly half of the staff are women, but they continue
to be under-represented in higher positions, in particular involving management tasks.
As a result, one of the goals of the mentoring programme introduced in 2002 is to
prepare qualified women for specialist and management positions.
The personal skills of employees are also key ingredients of WestLB Group’s success.
Employees come from a wide variety of countries and cultures, enabling the Group to
draw on an array of different talents. The aim of the diversity programme is to create
an environment in which all employees are free to develop their abilities and creativity –
regardless of sex, age, nationality or culture.
Socially Responsible Workplace Reduction
The Bank has introduced a rigorous cost-cutting programme, which includes a reduction
in headcount by 1,500 throughout the Group. With the help of state-of-the-art personnel
tools and close collaboration with the employee representatives to develop an appropriate
personnel concept, WestLB was able to reduce its workforce in the year under review
in a socially responsible manner.
The total number of employees dropped by 5.7% in 2002. The average number of
employees was 9,910. The Notes contain a detailed breakdown of this average.
102
Accounting Methods and Reporting Standards
The balance sheet and statement of income were prepared in accordance with the
provisions of the German Commercial Code (HGB), German Stock Corporation Act
(AktG), the Ordinance Regarding Accounting for Banks and Financial Services
Institutions (RechKredV) and the applicable standards and opinions of Germany’s
Institute of Certified Public Accountants. In its risk report, WestLB is guided by
accounting standards 5 –10 of the German Accounting Standards Board (Deutscher
Standardisierungsrat, DSR).
Due to the division of WestLB GZ in 2002, as well as the backdating of WestLB AG’s
formation to January 1, 2002, there are no original prior year results with which to
compare the results for 2002. In the following analysis, the results for 2001 represent
data of the WestLB GZ Group which has been adjusted for the effects of the division.
Statement of Income
WestLB Group’s income was affected by two major factors in the year under review:
First, the economy remained weak around the globe. Coupled with the protracted
uncertainty on the capital markets and increasing caution on the part of investors,
this led to significantly fewer business opportunities and thus to losses in income.
Moreover, the resulting drop in numerous companies’ credit ratings, as well as a series
of corporate scandals, forced WestLB Group to increase the risk provisions in its lending
business.
Second, WestLB Group systematically pursued and forged ahead with the risk-return
management strategy introduced in the previous fiscal year, and enjoyed a marked
decline in operating expenses as compared to 2001. However, in order to effect
sustainable reductions in future operating expenses, the Bank had to incur a series
of one-time charges that had a negative impact on the bottom line.
The resulting net loss for the year of € 1,730 million was offset with Group reserves and
reserves of WestLB AG; the obligations arising under profit participation certificates are
thus being serviced in the agreed-upon manner.
For comparison purposes, the figures on the 2001 Statement of Income have been
adjusted for the effects of deconsolidation and at-equity consolidation, as well as
differences arising from the division. In doing so, the companies consolidated as of
2002 helped determine which companies’ figures to use for 2001.
103
STATEMENT OF INCOME
Net interest income
Net commission income
Net income from trading operations
2002
€ millions
2001
€ millions
Changes
€ millions
1,541
1,995
– 454
– 22.8
692
773
– 81
– 10.5
%
177
185
–8
– 4.3
Personnel expenses
– 1,218
– 1,354
136
– 10.0
Other administrative expenses
– 1,056
– 1,260
204
– 16.2
230
405
– 175
– 43.2
Other operating expenses/income
Operating result before risk provisions/
result of evaluation
366
744
– 378
– 50.8
Risk provisions/result of evaluation
– 1,946
– 566
– 1,380
–
Operating result after risk provisions/
result of evaluation
– 1,580
178
– 1,758
–
– 88
– 35
– 53
151.4
– 1,668
143
– 1,811
–
Extraordinary result
Profit/loss for the year before taxes
Net Interest Income
The main factor behind the lower operating result of € 366 million was a drop in net
interest income. Net interest income was € 1,995 million in the previous fiscal year, but
fell to € 1,541 million in the year under review. Fewer opportunities for interest-rate
arbitrage and reduced contributions from asset backed transactions played a key role.
Net Commission Income
Net commission income fell 10.5% on the previous year. Because of the market,
income from the securities and securities underwriting business was again low.
Net Income from Trading Operations
Net income from trading operations was marked by contradictory trends. On the one
hand, WestLB AG reported growth in its foreign exchange result and increased income
from trading in interest rate products. On the other hand, weak stock markets and the
strain in Latin America’s capital markets caused by the crisis in Argentina adversely
affected the consolidated result, which dropped by € 8 million to € 177 million.
104
Administrative Expenses
In order to curb its administrative expenses, WestLB Group introduced sweeping
cost-saving measures. The systematic review of cost structures resulted in a substantial
reduction in both personnel expenses and other administrative expenses.
At € 1,218 million (2001: € 1,354 million) personnel expenses were substantially lower,
not only because of the drop in recurring payroll expenses resulting from headcount
cuts, but also because there were fewer allocations to reserves to cover performancebased compensation.
Other administrative expenses also fell sharply, down € 204 million to € 1,056 million
as compared to the previous year. One of the main factors in this drop was reduced
expenditure on IT services. At the same time, WestLB Group carried out various
projects in the year under review to maintain and expand the capability of its IT
infrastructure, including investments in office solutions; the solutions should help
reduce fixed IT costs even further in the years ahead.
Other Operating Surplus
The main factor behind the sharp drop in other operating surplus by € 175 million
to € 230 million was the lack of income that had been realised in 2001 when the Bank
revamped its real estate strategy.
Risk Provisions/Result of Evaluation
The risk provisions/result of evaluation comprise the following line items from the form
used to prepare the Group statement of income:
Income from the release of the special item with partial reserve character and the
corresponding expense item
Write-downs and other allowances for claims and certain securities, as well as
allocations to provisions for credit risks, and the corresponding income item
Income from additions to equity investments in affiliated and non-affiliated companies,
as well as securities treated as fixed assets, and the corresponding expense item
Expenses resulting from the assumption of losses
Risk provisions and the result of evaluation increased by € 1,380 million to € 1,946 million
as compared to the previous year:
105
RISK PROVISIONS/RESULT OF EVALUATION
Result of provisions for credit risks
Result of participations
Result of securities
Risk provisions/result of evaluation
2002
€ millions
2001
€ millions
Changes
€ millions
– 1,985
– 769
– 1,216
158.1
178
141
37
26.2
%
– 139
62
– 201
–
– 1,946
– 566
– 1,380
243.8
The result of provisions for credit risks rose to € 1,985 million, which represents an
increase of € 1,216 million over the previous year. The main reason for the increase
can be found in the amount of provisions set aside because of borrowers’ credit rating
problems, which rose to € 1,835 million in the year under review. The risks themselves
are the result of a weak economy, accounting scandals and corporate fraud. A substantial
amount of the provisions were set aside for loans to North American and UK companies
active primarily in the energy and telecommunications sectors. In order to cover latent
credit risks, the Bank allocated more than € 200 million to its reserve risk provisions/
general provision for loan losses; provisions have additionaly been set aside in connection
with risks that became apparent in April 2003.
At € 178 million, the result of participations was slightly above the previous year’s level.
Capital gains, the release of reserves in the participations portfolio and write-downs
on equity investments necessitated by the weak stock markets were the main factors
influencing the result.
At € – 139 million, the result of securities was well below the previous year’s result.
Write-downs on German stocks, North American bond holdings held in the investment
portfolio and fund investments were the principal causes.
Extraordinary Result
The staff reductions made because of organisational measures and the concentration
on core businesses resulted in considerable one-time expenditures, which also included
the foreseeable costs for restructuring measures not yet taken. WestLB also contributed
to the flood relief campaign sponsored by the German Savings Banks and Giro Association
(Deutscher Sparkassen- und Giroverband, DSGV).
The sale of the private banking business that was planned as part of the strategic focus
on core businesses resulted in extraordinary income.
Taxes on Income and Revenues
Despite an unsatisfactory result overall because of the prevailing market conditions,
some foreign locations posted good results. As a result, the taxes on income and
revenues were € 62 million in the year under review.
106
Segment Results
Profit is planned and managed on the basis of profit centre accounting within the
WestLB Group. The results of the various profit centres are combined into segments
that represent the main businesses and areas in which the WestLB Group is active.
With the WestLB Group’s system of management, a distinction is made between the
Banking Group, which includes all companies active in the lending and finance business,
as well as those that support the Group’s banking operations, and other Group companies,
which are more involved in segments that are not traditionally part of banking. While
the results of these other Group companies are listed separately in segment reporting,
the results of the Banking Group companies are captured in the relevant segments.
The segments are formed on the basis of the business orientation and market presence
of business units or the functional collaboration of organisational units. The various
segments of the WestLB Group are as follows:
SEGMENTS IN THE BANKING GROUP
Lending
Special Finance
Central Credit Management
Global Specialised Finance
Credits Germany/Europe
International Trade & Commodity Finance
Westdeutsche ImmobilienBank (WIB)
Credits America
Credits Asia/Pacific
Trading
Services
WestLB Panmure
Global Asset Management
Global Financial Markets
Banque d’Orsay
WestLB International, Luxembourg
Payments, CashManagement & Card Services
Global Back Office
Risk Management Support & Control
Other business units
Equity Investments
Internal Service Units
Equity Investments
Communications/Economics
Landesbank Rheinland-Pfalz
Group Development
Landesbank Schleswig-Holstein
Group Organisation
Group Finance
Other
Human Resources
Asset & Liability Management
Internal Service
Client business units
Group Information Management
WestLB Systems/IT
Consolidations
107
The following table represents an overview of the segments’ contributions towards the
consolidated result. The income shown includes net interest income, net commission
income, net income from trading operations, as well as other operating surplus (which
includes non-income taxes). In terms of the income reported for the trading segment,
the net income from trading operations included there has been marked to market;
the adjustment made for purposes of the published accounts is captured under Other.
Expenses include personnel expenses and other administrative expenses.
SEGMENT RESULTS
€ millions
Lending
Special Finance
Income
Expenses
Risk Provisions/
Result of Evaluation incl.
Extraordinary Result
Net Income/Loss for
the Year before Taxes
2002
2001
2002
2001
2002
2001
2002
2001
477.8
515.4
– 197.2
– 208.6
– 625.6
– 174.3
– 344.9
132.5
804.7
904.0
– 200.9
– 256.1
– 1,065.2
– 130.5
– 461.4
517.4
1,010.3
1,262.5
– 1,030.6
– 1,064.1
– 348.3
– 106.3
– 368.6
92.1
Services
178.1
170.9
– 187.6
– 221.9
– 26.5
37.0
– 36.0
– 14.0
Equity Investments
– 51.2
28.3
– 19.2
– 16.4
386.3
142.1
316.0
154.0
908.4
1,036.9
– 1,183.4
– 1,283.7
– 31.2
4.9
– 306.3
– 241.9
Other
– 633.0
– 649,9
598.1
488.2
– 275.4
– 365.0
– 310.3
– 526.7
Banking Group
2,695.1
3,268.1
– 2,220.8
– 2,562.6
– 1,985.9
– 592.1
– 1,511.5
113.4
Trading
Other Group companies
293.5
380.3
– 212.0
– 260.9
– 112.6
– 30.0
– 31.0
89.4
Consolidations (Group)
– 348.9
– 290.4
158.9
209.5
65.1
21.1
– 125.0
– 59.8
Group
2,639.7
3,358.0
– 2,273.9
– 2,614.0
– 2,033.4
– 601.0
– 1,667.5
143.0
The segments’ cumulative operating result was marked by a reduction in income that
could not be offset by the cost savings achieved in the year under review, despite the
fact that some of the savings were substantial. Also affecting the result was the sharp
rise in risk provisions over the previous year, which led to a net loss for the year before
taxes of € 1,668 million. The one-time expenditures related to the restructuring
measures introduced also had an adverse effect.
Despite the unfavourable climate of the overall economy, the Lending segment was able
to post an operating result before risk provisions that was slightly above expectations.
Of course, there were substantial defaults to take into account, as well as greater
allocations to provisions to account for likely risks. The headway made in having the
lending business take on a supporting role in the area of cross-selling also took away
from income, given the volume of the measures involved. However, the same measures
once again led to a reduction in the capital tied up in the Lending segment.
108
Segment
Principle I Capital
€ millions
2002
2001
Return on Principle I
Capital
in %
2002
2001
Cost-Income Ratio
Employees
(Full-Time)
in %
2002
2001
2002
2001
Lending
3,316.7
3,841.0
– 9.6
3.4
41.3
40.5
702
828
Special Finance
1,903.1
2,543.7
– 21.5
21.3
25.0
28.3
671
626
Trading
3,086.6
3,704.5
– 8.2
2.4
102.0
84.3
2,170
2,433
Services
199.5
183.8
– 18.9
– 7.2
105.3
129.8
794
953
4,389.2
3.910.4
7.7
4.2
– 37.4
58.0
82
78
57.2
42.0
> – 100
> – 100
130.3
123.8
2,914
3,048
490.6
575.4
> – 100
– 68.6
94.5
75.1
1,155
1,255
13,442.9
14,800.8
– 10.2
0.8
82.4
78.4
8,488
9,221
Equity Investments
Other
Banking Group
Business in the Special Finance segment was similar to that in the Lending segment.
The operating result surpassed the target by approximately 9%. However, the expense
for risks, due in part to corporate scandals, was immense. Nevertheless, the strategic
importance of the Special Finance segment remains intact, as the increase in the
number of staff employed in the segment reflects. Meeting the objectives for expanding
business and the favourable cost-income ratio (25%) prove that WestLB is capable of
exploiting the existing market potential in a cost-effective manner.
The Trading segment continued to be at the mercy of an extremely unfavourable mood
on the money and capital markets. One way in which the WestLB Group responded to
the markets’ persistent weakness was to push ahead with staff reductions in the segment.
It also adjusted performance-based compensation accordingly. Despite these moves,
however, it was not possible to offset the slump in income and the sharp deterioration
of risk provisions/result of evaluation as compared to the previous year.
Business in the Services segment was unsatisfactory. Global Asset Management, the
activities of which were pooled under WestAM Holding GmbH in the previous year, is
still reporting a deficit because of start-up losses and the continuing difficult market
environment. Results in the Payments, Cash Management, Card Services unit would
have stayed at last year’s positive level if it were not for the restructuring expenses
incurred. As a result, it also contributed to the overall loss in the Services segment.
At € 316 million, the result in the Equity Investments segment was much higher than
in the previous year. The business of Equity Investments is marked by substantial capital
gains, but it also faces high risk expenses, depending on market developments. The
year 2002 marked the first time that the business of Landesbank Rheinland-Pfalz and
Landesbank Schleswig-Holstein was captured in this segment. This means that the two
Landesbanks are no longer being consolidated pro rata, but at-equity.
109
The Internal Service Units provide services for the Group’s client and product
units. The services are charged to the business units that request them on the basis
of internal prices. The internal prices correspond to market prices, or where this is not
possible, they reflect similar market prices. This procedure ensures that the allocation
of needed resources is economical. It also encourages a cost-conscious approach to
the use of internal services and creates an incentive for providing services on a more
cost-effective basis. The results of this segment chiefly reflect the overhead costs that
could not be charged to other units. In the year under review, the result was also
affected by division-related effects and the effects of restructuring.
The main items included in the Other segment are the consolidations at the Banking
Group level. These include the netting of income and expenses, of intra-group results
and capital, as well as the netting of internally generated income and expenses necessary
for creating an accurate picture of profit centre results. The expenses of the client
business units, which represent the Group’s selling expenses, are captured here.
The Other segment also includes the income-reducing adjustments made to keep the
marked-to-market segment results in line with the valuation guidelines of the German
Commercial Code (HGB). Allocations to reserves under § 340 (f) of the German Commercial
Code (HGB), profit/loss effects from the provisions for country risk and profit components
that cannot be directly attributed to other segments are also reported in the Other
segment.
Balance Sheet
The items on the WestLB AG Group’s balance sheet underwent only minor changes in
2002. The structure of invested funds changed, in that liquid funds (cash, debt issues
and bills) and claims on banks increased, while claims on customers and securities/
equalisation claims decreased. The issue of bonds was increasingly used as a source
of refinancing.
After the division and at-equity consolidation of Landesbank Rheinland-Pfalz and
Landesbank Schleswig-Holstein, key items on the balance sheet are as follows:
110
ASSETS
Dec. 31, 2002
€ billions
Jan. 1, 2002
€ billions
Changes
€ billions
%
Cash, liquid debt issues and bills
10.7
6.4
4.3
67.2
Claims on banks
77.0
68.3
8.7
12.7
Claims on customers
88.8
93.4
– 4.6
– 4.9
Securities/Equalisation claims
72.8
77.5
– 4.7
– 6.1
Equity investments in associated,
affiliated and non-affiliated companies
6.4
6.1
0.3
4.9
Trust assets
0.5
0.5
0.0
0.0
Fixed assets
2.8
2.7
0.1
3.7
Other assets
6.6
9.1
– 2.5
– 27.5
Total assets
265.6
264.1
1.5
0.6
Dec. 31, 2002
€ billions
Jan. 1, 2002
€ billions
118.8
108.3
10.5
9.7
Liabilities to customers
63.8
73.2
– 9.4
– 12.8
Certificated liabilities
58.1
54.4
3.7
6.8
LIABILITIES
Liabilities to banks
Changes
€ billions
%
Trust liabilities
0.5
0.5
0.0
0.0
Other liabilities
11.5
12.5
– 1.0
– 8.0
7.6
8.0
– 0.4
– 5.0
Subordinated liabilities/
Equity capital/
5.3
7.2
– 1.9
– 26.4
265.6
264.1
1.5
0.6
Contingent liabilities
17.3
18.2
– 0.9
– 4.9
Other commitments/Credit commitments
78.2
94.2
– 16.0
– 17. 0
Administered funds
35.8
39.7
– 3.9
– 9.8
396.9
416.2
– 19.3
– 4.6
Total liabilities
Business volume
Credit volume was roughly € 261.3 billion at December 31, 2002, which meant that the
amount of risk-weighted assets declined slightly. Claims were up by a narrow margin;
irrevocable credit commitments dropped noticeably.
111
WestLB continued to strengthen its market position in the area of special finance and
project finance. The projects for which financing is sought differ from region to region.
In Asia, the emphasis is on ports and power station construction. In North America,
the majority of deals involve the energy markets, while in Europe the focus is on the
telecommunications sector. Infrastructure and aircraft finance/leasing are also popular.
In the course of 2002, WestLB AG continued to provide financing for cross-border leasing
deals. In the last two deals, for example, the cities of Dortmund and Essen leased their
rail infrastructure to U.S. investor trusts. At US$ 1.8 billion and € 1.4 billion respectively,
these transactions were the largest U.S. cross-border transactions that were made with
a German city in 2002. WestLB executed payment undertaking agreements for the
cities of Dortmund and Essen.
CREDIT VOLUME
Dec. 31, 2002
€ millions
Jan. 1, 2002
€ millions
Claims on banks
77,039
68,315
8,724
12.8
Claims on customers
88,762
93,440
– 4,678
– 5.0
17,341
18,231
– 890
– 4.9
Irrevocable credit commitments
78,200
94,231
– 16,031
– 17.0
261,342
274,217
– 12,875
– 4.7
7,554
7,178
376
5.2
268,896
281,395
– 12,499
– 4.4
Credit volume carried
on the balance sheet
Derivatives (credit risk equivalents)
Total credit volume
Changes
€ millions
%
The credit volume includes € 49.6 billion in repurchase agreements, of which € 24.1 billion
was transacted with banks. Given the anticipated entry into force of Basel II in 2007,
the security for loans has become even more important.
Securities Holdings
The total holdings of € 67.6 billion in bonds and other fixed-income securities
include money market instruments in the amount € 1.9 billion, bonds in the amount
of € 64.6 billion and own bonds in the amount of € 1.1 billion, which are held to keep
prices stable. Most of the money market instruments are denominated in foreign
currencies.
Of the total bond portfolio, the Group held € 36.1 billion in the trading portfolio,
€ 28.8 billion in the investment portfolio and € 2.7 billion in the liquidity reserve.
112
The investment portfolio is carried as a long-term investment and funded almost entirely
with matching maturities and currencies; this is predominantly the case with the liquidity
reserve.
The book value of the shares and other non-interest-bearing securities held by the
Group was around € 4.8 billion at December 31, 2002. Of that, the volume of shares in
investment funds was nearly unchanged at € 2.7 billion. Most of the investment funds
were established by Group companies and are mainly for own investment purposes.
Equity Investments in Associated, Affiliated and Non-Affiliated Companies
The carrying value of the equity investments in associated, affiliated and non-affiliated
companies totalled € 6.4 billion at December 31, 2002. The investees included banks,
financial service providers and other companies. In terms of other companies, WestLB
holds shares in well-known industrial companies as well as in small and medium-sized
enterprises.
The value of the equity investments portfolio increased by around € 0.2 billion since
January 1, 2002 because of the way it was restructured in the year under review.
Notable additions include RWE AG due to the change in the structure of the investment,
GLB GmbH & Co. OHG, into which nearly all of the Landesbanks, WestLB included,
contributed their shares of DekaBank Deutsche Girozentrale, and GOH Grundstücksverwaltungsgesellschaft & Co. KG. The investments in West STEAG Partners GmbH
and HeidelbergCement South-East Asia GmbH were increased.
Disposals included the holdings in Österreichische Kontrollbank AG and Westfälische
Provinzial-Versicherung. Write-downs were taken on the holdings in HypoVereinsbank,
ThyssenKrupp AG and Nordex AG, as well as other listed companies, which in part
took account of the massive slump in prices on the stock markets. Due to the unusually
low stock prices at the present time, the book value of some holdings in the Bank’s
portfolio is higher than the value of those holdings on the stock markets; however, given
the going-concern value of these companies, the true value of the equity investment
portfolio is still higher than what the balance sheet reflects.
The increase in associated companies is the result of the equity values of Landesbank
Schleswig-Holstein and Landesbank Rheinland-Pfalz. The first-time inclusion of MIG
Immobiliengesellschaft mbH also contributed to the rise.
The effect of the first-time consolidation of Landesbank Schleswig-Holstein and
Landesbank Rheinland-Pfalz as associated companies was already captured in the
figures for January 1, 2002; previously, these Landesbanks were consolidated on a
pro rata basis.
113
Of note among the recently acquired holdings in affiliated companies is the leveraged
buy-out of French electrical company Legrand S. A.
Customer and Bank Deposits
At € 118.8 billion, deposits from banks represent WestLB’s largest source of refinancing.
Customer deposits were down 12.9 % to € 63.8 billion. Of these liabilities to customers
and banks, € 47.4 billion stem from repo transactions.
Issuing Business
Despite unfavourable conditions, WestLB Group enjoyed a strong presence on the
international bond markets. Of particular note is the US$ 1 billion bond which it issued
and managed as part of the Debt Issuance Programme. The bond attracted the interest
of a broad range of investors and was successfully placed. WestLB also made its presence
known elsewhere around the world, with issues not only in USD, but PLN, JPY, GBP,
NOK and HKD as well. WestLB has made a name for itself as a flexible issuer that
offers tailor-made products.
BREAKDOWN OF REFINANCING AT DECEMBER 31, 2002 (%)
26%
24%
50%
In the short-term segment, WestLB AG makes use of its global commercial paper
programme (CP programme), which posted good issue volume in 2002. WestLB AG’s
CP has been rated A1+ by Moody’s and P1 by Standard & Poor’s.
114
With outstanding CP volume valued at approx. € 6.75 billion as of November 30, 2002,
CP Ware, an international source of market data, ranked WestLB’s global CP programme
sixth among the top 50 CP issuers in the European commercial paper (ECP) market.
The Bank issued CP in EUR, USD, GBP, CHF, JPY and CZK. Both the European and
U.S. commercial paper markets were used as venues.
Altogether, the portfolio of certificated liabilities amounted to € 58.1 billion as of
December 31, 2002.
Own Funds
The Group’s capital and reserves are as follows:
Subscribed capital
WestLB Group
WestLB GZ Group
Dec. 31, 2002
€ millions
Dec. 31, 2001
€ millions
950.5
1,183.8
2,034.8
3,318.1
–
3,016.6
Reserves from retained earnings
– reserves required under
WestLB’s articles and bylaws
– other reserves
409.3
973.9
529.5
1,359.9
Group reserves
625.8
2,398.0
2.5
62.1
Capital reserves
including:
– special reserves pertaining to Wfa
Equalising items for shares
of other shareholders
Equity capital pursuant to the
4,996.8
8,851.4
261.9
597.3
5,067.0
6,829.6
2,535.2
3,421.3
Other capital and reserves
Total capital and reserves
7,864.1
10,848.2
12,860.9
19,699.6
WestLB AG’s subscribed capital amounted to € 950.5 million at December 31, 2002.
The Bank’s sole shareholder is Landesbank NRW.
The largest part of WestLB’s reserves consists of additional paid-in capital from the
capital increase of August 1, 2002, which was carried out in the course of implementing
the parent-subsidiary model (i. e. the division of WestLB GZ into the public-law
Landesbank NRW and the private-law WestLB AG). Of the total € 2,000 million
contributed, € 266.7 million represents subscribed capital.
115
Parts of the Bank’s reserves were transferred to Landesbank NRW and LBS in the
course of the division (€ 500 million towards capital and € 3,016.6 million towards the
special reserve for the promotion of housing construction in the case of Landesbank
NRW and € 225 million towards retained earnings in the case of LBS).
Reserves from retained earnings are broken down into reserves required under the
articles and bylaws of WestLB and other reserves. In 2002, € 610 million was released
from retained earnings to cover the net loss for the year.
Group reserves total € 625.8 million (2001: € 2,398.0 million); in addition to withdrawals
of € 1,120.4 million to cover the consolidated net loss, the at-equity consolidations of
Landesbank Schleswig-Holstein and Landesbank Rheinland-Pfalz fuelled the reduction.
The individual items and details of movement in the Group’s equity capital in fiscal year
2002 are shown in the statement of changes in shareholders' equity.
Subordinated liabilities and profit participation capital at WestLB AG dropped
€ 371 million to € 7,401.9 million in the year under review.
To strengthen WestLB AG’s capital base, the former owners of WestLB GZ resolved in
2002 to increase WestLB AG’s capital by € 1.25 billion. The capital increase was carried
out on January 2, 2003, in the form of silent contributions. Repayment of the silent
contributions will occur in five equal installments, with the amounts contributed being
converted into shares of WestLB AG. In order for the increase to take place, the shareholders
of the Bank gave the Managing Board the authority to increase the Bank’s capital by
issuing new shares in exchange for cash or in-kind contributions. All increases are
subject to Supervisory Board approval and must be completed by December 31, 2007.
The silent contributions made comply with the statutory requirements for core capital
as set forth in § 10 of the German Banking Act (KWG), as well as in the Basel Capital
Accord.
Under § 10 of the German Banking Act (KWG), as well as under Principle I, WestLB
must have adequate capital and reserves to back its operations. Specifically, the ratio
between WestLB’s capital and reserves and the sum of its risk-weighted assets plus
12.5 times the relevant amount for market risk positions (currency, commodity, trading
book and option risks) must not fall below 8%. In addition, an equity capital ratio
(liable capital vs. risk-weighted assets) of at least 8% must be maintained. WestLB AG
subgroup exceeded this equity capital ratio at all times in 2002.
The capital and reserves recognised for German banking regulatory purposes consist
of liable equity capital (core capital and supplementary capital) and Tier III capital,
which for the WestLB AG subgroup totalled € 16,252 million at December 31, 2002.
The breakdown of capital and reserves recognised as liable capital under the German
Banking Act is as follows:
116
WestLB
Subgroup
Jan. 2, 2003
€ millions
WestLB
Subgroup
Dec. 31, 2002
€ millions
WestLB
Group
Dec. 31, 2001
€ millions
Core capital
9,063
7,813
8,396
Paid-in capital
6,473
6,473
5,263
Disclosed reserves
9,439
9,439
7,819
12
12
0
2,781
1,531
1,023
397
397
556
– 324
– 324
– 198
– 54
– 54
– 71
– 10,441
– 10,441
– 6,184
780
780
188
Supplementary capital
7,423
6,798
7,777
Deductions from core and
supplementary capital
– 191
– 109
– 97
Liable capital
16,295
14,502
16,076
Tier III capital
2,418
1,760
1,955
18,713
16,262
18,031
– 668
– 10
0
18,045
16,252
18,031
Intragroup profit
Asset contributions of silent partners
Special item for general bank risks
under § 340 g HGB
Net loss for the year
Intangible assets
Book value of the capital shares
accounted for by Group companies
Capitalised aggregation difference under
§ 10 a (6) Sentences 6 and 7 KWG
Total own funds
Unused Tier III capital
Own funds under § 2(2) and (3) Principle I
For accounting and tax purposes, the division of WestLB GZ into Landesbank NRW and
WestLB AG was backdated to January 1, 2002. However, regulatory ratios could not be
determined for the two new institutions, or for the WestLB subgroup, until month-end
August 2002. Therefore, for purposes of comparison between years, the figures are
shown with those of the former WestLB Group at December 31, 2001.
The treatment of the equity investments in Landesbank Rheinland-Pfalz and Landesbank
Schleswig-Holstein is also different. They have been included on a pro rata basis for
regulatory purposes.
117
The profit participation rights and subordinated liabilities included in the WestLB
subgroup’s capital and reserves for regulatory purposes satisfy the requirements of
§ 10 (5), (5a) and (7) of the German Banking Act (KWG). There can be no early repayment
obligation on the subordinated liabilities. In the event the Bank goes bankrupt or is
liquidated, the profit participation rights and subordinated liabilities will not be repaid
until all unsubordinated claims have been satisfied. Based on maturity, the breakdown
at December 31, 2002 of supplementary capital eligible for recognition by the banking
supervisory authorities is as follows:
WESTLB SUBGROUP BREAKDOWN BY MATURITY
Maturity Date
Profit Participation Capital
Dec. 31, 2002
€ millions
Subordinated Liabilities
Dec. 31, 2002
€ millions
2003
–
419
2004
35
98
2005
138
521
2006
257
170
2007
580
386
2008
386
495
2009
750
1,461
2010
370
328
2011–2015
614
720
2016–2030
25
710
2031–2040
–
280
2041–2050
Total
–
78
3,155
5,666
Using the capital and reserves recognised for regulatory purposes as a basis, the
following Principle I ratios were determined at December 31, 2002:
RISK-WEIGHTED ASSETS AND EQUITY CAPITAL RATIO PURSUANT TO KWG
Risk-weighted assets of the investment book
12.5 x the relevant amount for market risk positions
Total
WestLB
Group
Dec. 31, 2001
€ millions
124,557
144,398
30,625
42,875
155,182
187,273
Equity capital ratio
11.6
11.1
Overall ratio
10.5
9.6
5.7
5.1
Core capital ratio
118
WestLB
Subgroup
Dec. 31, 2002
€ millions
Unlike the guidelines of the Bank for International Settlements (BIS), Principle I does
not recognise a core capital ratio. The Principle I ratio is calculated for costing purposes
by subtracting the capital tied up in the trading book from core capital and dividing the
result by the risk-weighted assets of the investment book multiplied by 100.
The ratios determined in accordance with the BIS guidelines are as follows:
RISK-WEIGHTED ASSETS AND EQUITY CAPITAL RATIO PURSUANT TO BIS
Risk-weighted assets of the investment book
12.5 x the relevant amount for market risk positions
Total
Overall ratio
Core capital ratio
WestLB
Subgroup
Dec. 31, 2002
€ millions
WestLB
Group
Dec. 31, 2001
€ millions
135,135
158,057
23,625
33,725
158,760
191,782
10.1
9.3
5.8
5.0
For regulatory purposes it is only necessary to determine the BIS ratio for the entire
Group. Doing so for the WestLB subgroup, and then monitoring the result, is done
chiefly for internal purposes.
The substantial decline in the amount of capital and reserves tied up for market risk
positions can be attributed to the fact that the internal model for general risks of interest
rate movements was used for the first time as of December 31, 2002. This effect
overcompensated for the moderate expansion in business and essentially caused the
noticeable improvement in capital ratios.
Even before the consultation period for the New Basel Capital Accord (Basel II) was
over, WestLB began implementing the capital adequacy recommendations contained
therein in 2002 with a series of coordinated efforts and projects (including, in particular,
the creation of a database of credit ratings and collateral, the determination of the risk
parameters as required under Basel II, the ascertainment of operational risks, market
discipline and the updating of IT systems). By starting early, the Bank has given itself
the time it needs to archive data and to meet the new accord’s deadlines.
119
Risk Report
It is a fundamental principle of WestLB AG Group’s business policy to approach risks
responsibly and with an eye toward returns. To gauge and adequately exploit the earnings
potential of a multitude of unique and innovative businesses within the context of a
risk-return approach, risks must be identified, measured adequately and continually
monitored. As a result, the risk management system and tools used at WestLB are
organised primarily on the basis of the product lines and the unique risks inherent
to each of those product lines. Taken as a whole, the individual components of risk
controlling and management form a comprehensive and effective system of risk
management that generates the information needed to make day-to-day, strategic
business decisions for the WestLB Group.
Organisational Basis of Risk Management in the WestLB Group
The majority of risks are monitored and managed in the WestLB AG Group in a uniform
manner via the relevant divisions of WestLB AG. The exceptions are the (sub-)groups of
Westdeutsche ImmobilienBank and the Boullioun Group, which perform their own risk
management. From WestLB’s perspective, any risks inherent in these businesses are
managed as equity investment risks.
Accordingly, the risks for approx. 96% of the business activities carried out in the
WestLB Group (as taken from the business volume carried on the balance sheet) are
managed from a single source and in accordance with uniform methods.
The Central Credit Management unit is responsible for monitoring counterparty default
risks in the lending business. The Risk Management Support & Control unit is responsible
for monitoring market price risks in the trading and investment portfolios as well as
counterparty risks in the trading business. The Global Financial Markets unit manages
short-term liquidity risk, while the Capital & Mismatch Management unit manages
structural liquidity risk. The Equity Investments business group handles the routine
management of participation risks, as well as risk management for Group companies that
are either not part of the Banking Group’s risk management system or do not operate
their own risk management systems. Any tasks related to developing and providing
methods for risk-return management, including the relevant guidelines for the business
units and the monitoring of how much risk the Group can bear, are performed by the
Group Strategy/Controlling unit. This unit also handles all other operational management
duties.
120
The appropriateness and effectiveness of the overall risk management is constantly
monitored by the Group’s internal auditing unit. As an independent supervisory entity,
the internal auditing unit reports directly to the Group Managing Board with its results,
analyses, evaluations and with any recommendations it may have.
The responsibility within the Managing Board of WestLB AG, and therefore within the
Managing Board of WestLB Group, for units and businesses that perform substantive
work in the area of risk management was concentrated in the position of Corporate
Risk Officer in 2002.
Types of Risks
The Bank distinguishes between market price risks, counterparty default risks and
liquidity risks, as well as participation risks, operational risks and other risks.
Market price risks are potential losses in the trading and investment portfolios caused
by price fluctuations on the financial markets.
The risk of financial loss arising from a borrower’s or counterparty’s inability to meet
its payment obligations is known as counterparty default risk. In trading operations,
counterparty default risk is referred to as counterparty risk. Country risk (particularly
transfer risk) is a type of counterparty default risk; it arises when a borrower will not
(or will no longer) be able to service its foreign currency debt because of a worsening
of the general economy or the political situation in the borrower’s home country.
Liquidity risk refers to potential bottlenecks in market liquidity, which could make it
difficult for the Group to meet its future payment obligations in full or at reasonable
prices, within a reasonable time.
Participation risk refers to potential fluctuations in the value of companies making up
the WestLB Group, as well as risks arising from contracts with companies in which the
Group participates.
Operational risks are defined as the threat of losses resulting from the inappropriate
behaviour of employees or from the failure of internal procedures and systems.
Operational risks also encompass external events.
Other risks include threats to the Bank’s reputation and any other general business
risks.
121
Uniform System of Risk Measurement
WestLB has incorporated the various methods used to measure specific risks into a risk
management system that spans all products and business units; the measurement of
operational and participation risks is currently being adapted to fit this uniform system.
The use of uniform risk ratios makes it easier to compare the different types of risks
against each other within the context of the Bank’s overall documented exposure. The
wealth of risk information captured includes the quantitative data required for regulatory
reporting purposes and for the overall operational management of the Bank (e. g. riskweighted assets, credit risk equivalents and economic capital, anticipated loss, value-at-risk,
etc.), but also contains qualitative information (e. g. rating structures, market analyses).
The quality of risk measurement is monitored continuously. A key element of this
quality control is to test the risk parameters that are being used (back testing).
Simulations and stress tests ensure that even unlikely, extreme market situations are
also taken into account.
Risk reporting to the decision makers in the business and management units is
up-to-the-minute.
Consistent Management
One way that the risk policy defined by the Managing Board comes to life is in the form
of a global system of risk limits for counterparty default and market price risks. This
system ensures that the sum of the risks assumed by the individual business units stays
within the Group’s total risk limit.
WestLB Group’s risk policy is documented in guidelines and working instructions.
Having these guidelines and instructions ensures that there is a system of risk-adjusted
profit control for operations that is in harmony with the Bank’s overall goals.
Monitoring and Managing Risks in the Trading Business
The Managing Board is responsible for setting the risk policy and profitability goals of
the trading business. It also defines strategies for trading, including which products are
offered to what customers on which markets. The required limits and framework for
risk management are derived by looking at the budget and considering how much risk
the Group can bear.
The individual trading units are responsible for their own risk management within the
guidelines defined by the Managing Board. They are accountable for the risks and
returns of their activities.
122
The Risk Management Support & Control (RMS&C) unit is responsible for independently
implementing and guaranteeing adherence to the Managing Board’s guidelines for risk
management in the trading business. To that end, RMS&C is present in all locations
where there is an active trading business. Its duties and responsibilities are described
in detail in a trading handbook. This handbook is available as a database application,
which means that all employees have access to the latest version of it.
RMS&C is also responsible for monitoring market price and counterparty risks. Limit
structures are regularly reviewed and updated. In addition, adequate methods for
quantifying risks are defined.
The RMS&C unit continues to collaborate on all activities aimed at improving the
Bank’s overall risk management system. It introduces trading-specific information into
the individual management systems and ensures that these systems adequately capture
the trading business.
RMS&C is also in charge of introducing new products into the trading business (New
Product Process, or NPP). NPP ensures that all new transactions are performed properly
and seamlessly, and also supports the Bank’s efforts to respond in a timely manner to
customers’ demands for innovative products.
By providing decision makers with regular risk analyses and detailed information
about all necessary risk and P&L numbers, the RMS&C unit actively supports the
risk management of the trading business. Individual risk committees for market and
counterparty risks regularly meet to discuss the risk exposure in the trading business.
The Managing Board meets every two weeks to discuss the risk situation.
WestLB AG satisfied the minimum requirements for conducting trading operations
at all times in the year under review.
Market Price Risks
Market risks, and the value of the WestLB Group’s trading and investment portfolios,
are computed daily. In order to track the medium and long-term development of factors
that impact market risks, analyses from the Economics Department are used. Particular
emphasis is placed on information about products that have equity risks and interest
rate risks, since these are the product categories under which most of the positions fall.
At the end of 2002, WestLB received approval to begin using its internal VaR model to
determine Principle I equity capital ratios for the trading business. The approval also
covers all of WestLB´s foreign branches. The internal model fully captures general
interest rate risks, and work is currently under way to teach the model to recognise
specific interest rate risks as well.
123
The value-at-risk (VaR) approach is used to determine market price risk under normal
market conditions. VaR is used to estimate the likelihood that a given portfolio’s potential
future losses will exceed a certain amount within a specified period of time. The VaR
technique can be applied consistently to all products and markets, which makes it
possible to compare risks between different portfolios.
The VaR model employed at WestLB for interest rate and foreign exchange risks is
based on a Monte Carlo simulation technique. For internal purposes, VaR calculations
are done on the unweighted basis of the last 250 changes to all market parameters that
materially impact the portfolio, assuming a holding period of one day and a confidence
level of 95%. For external purposes, a confidence level of 99% and a holding period of
ten days are assumed.
Market risks are measured using a central data warehouse that makes it possible to
reprice the relevant trading products and identify non-linearities and diversification on
all trading levels, regardless of the front office systems used.
Regular back testing is used to monitor how meaningful the VaR numbers are. Detailed
quarterly analyses supplement the exhaustive daily tests, and the conclusions drawn
from the testing make an important contribution towards improving the model. The
results are also incorporated into the validation that takes place every six months. The
goal of the six-month validation is to ensure that the model is capable of adequately
determining risks, even if the risk parameters change.
In order to determine value at risk, it is necessary to make statistical assumptions about
the change in the risk factors used. WestLB assumes a standard logarithmic distribution
of the daily variance and uses the variance-co-variance approach when making its
calculations. The co-variants are determined on the basis of a series of equally weighted
logarithmic changes in the risk factors.
The Monte-Carlo-based market price risk calculations are also used to determine stock
risks. Doing so ensures that diversification effects are included and that non-linear risks
are adequately captured.
VaR is the most important tool for limiting market price risks that the Managing Board
has at its disposal. VaR limits have been set on all relevant levels, down to the smallest
units with risk and profit responsibility (limit units).
VaR limits are monitored daily. If the limits are exceeded, RMS&C alerts the relevant
trading unit, instructing it to take the necessary measures to return its business to within
normal VaR limits and then monitoring that the trading unit does so. The head of the
RMS&C unit is notified each time a VaR limit is exceeded. The Managing Board is
notified when the amount by which a VaR limit is exceeded is substantial.
124
Additional information (e.g. sensitivities, correlation risks, binary risks, etc.) is gathered
in order to portray and limit risk clusters and risks that are not captured by VaR.
Using the Bank for International Settlements’ parameter (confidence level of 99% and
holding period of ten days), the values at risk in 2002 were as follows (€ millions):
VaR
per Dec. 31. 2002
€ millions
Minimum VaR
in 2002
€ millions
Maximum VaR
in 2002
€ millions
Average VaR
in 2002
€ millions
77.2
72.8
121.0
93.0
53.2
14.0
18.3
44.2
8.6
12.0
91.6
19.4
28.2
64.2
12.8
18.5
WestLB Group
thereof
– GFM1
– WestLB Panmure
– other trading units2
1
2
incl. Credit Derivatives
Düsseldorf Trading Others, Banque d’Orsay, Luxembourg Int. S. A., WSP Equities,
Strategic Stock Positions, BEAL Buenos Aires, Specialised Finance
VaR estimates the maximum loss under normal market conditions. In order to look at
movements in market parameters that are less likely than those assumed in the VaR
calculations (fat tails), scenario analyses are required. When doing fat-tail analysis,
WestLB uses parametric and historical scenarios. In addition, stress tests are performed
weekly and their results are passed on to the Managing Board at least once every
month.
By analysing and commenting on the potential losses revealed in these analyses and
tests, the RMS&C unit ensures that the trading units and/or Managing Board have what
they need in order to react to extreme market situations.
Counterparty and Country Risks in Trading Operations
Transactions with external customers are subject to default risk related to the
counterparty and/or country involved.
The controlling and management activities undertaken to counteract the risk of default
in the trading business require a wide array of tools and consolidation into one uniform
process. The individual steps are as follows:
The correct measurement and modelling of all risks forms the basis. The aim is to
develop customer-specific and type-specific risk profiles over the life of transactions by
taking into account the unique aspects of a given product. With interest rate swaps and
other long-term derivatives, the Bank uses a Monte-Carlo-based portfolio simulation
method.
125
The RMS&C unit incorporates the exposures into the relevant limits every day. Thus,
the Group has a central record of all counterparty and issuer limits in trading, which
ensures uniform and up-to-the-minute risk monitoring.
The responsible decision makers determine the counterparty, issuer and country risks
within the trading business using the Group-wide credit processing mechanisms.
Limit compliance is checked daily. Once it has been determined that a limit has been
exceeded, the trading unit issues an opinion and the Managing Board members
responsible for the RMS&C unit and for the trading units are informed. In addition to
reports on short-term developments, standard reports regularly report on how close
active operations are coming to the limits set. If needed, the member of the Managing
Board in charge of the RMS&C unit is given suggestions on how to correct non-compliant
activity.
In order to reduce the counterparty risks in the derivatives business, WestLB
systematically works with collateral agreements. Specifically, it uses the standard
master agreements available on the market, which provide for close-out netting and
the provision of security. Collateral management (which generally takes the form of
daily margin calls) is handled by the Global Back Office and RMS&C units as part of
the Bank-wide management of counterparty default risks. The legal and operational
requirements for recognising this type of risk reduction are defined at WestLB by the
Netting Committee. The substantial amount of legal documentation that is required
also helps with measuring the Principle I capital ratios for counterparty risks. Internal
risk management and external reporting both make use of information that is contained
in a Bank-wide legal database.
In addition to monitoring the risks posed by individual customers, RMS&C supports the
management of counterparty default risk in the Bank’s overall portfolio by analysing
and quantifying the risks from trading operations, which are then incorporated into the
relevant modelling.
Monitoring and Managing Risks in the Lending Business
Central Credit Management (CCM) has overall responsibility for managing the Bank’s
worldwide counterparty default and country risks.
CCM defines the standards for conducting the Bank’s lending business in accordance
with the risk policy established by the Managing Board. This includes developing the
credit approval limits to be approved by the Managing Board for the various credit and
product groups, as well as creating the processes and methods used in the analysis,
management and monitoring of counterparty default risks.
126
CCM has voting and co-determination rights where the credit approval and monitoring
process is concerned. CCM is also responsible for monitoring the country limits of all
non-trading products.
CCM is responsible for the overall planning and management of the loan portfolio, the
goal of which is to optimise the structure of the Bank’s credit exposure. The structure
of the loan portfolio is regularly reviewed in order to ensure its compatibility with the
risk policy defined by the Managing Board. The results are presented to the Managing
Board in quarterly reports.
In the course of optimising its credit and capital management, the Group created a
separate Portfolio Management unit within CCM in 2002, the main task of which is
active portfolio management. The Portfolio Management units makes recommendations
to the Credit Portfolio Committee (CPC), which consists of the Managing Board members
responsible for risk management, clients and special finance. Decisions are made by
the full Managing Board and then implemented by the Portfolio Management unit.
Counterparty Default Risks – Risk Provisions
The amounts reported in risk provisions/result of evaluation under the result of provisions
for credit risks encompass the P&L effects resulting from the evaluation of acute and
latent counterparty default risks:
RISK PROVISIONS/RESULT OF EVALUATION – LENDING BUSINESS
Allocation to
Allowances
€ millions
Write-Backs
from Allowances
€ millions
Net
Allowances
€ millions
Other Risk
Exp./Income
€ millions
Risk Result
€ millions
Acute counterparty default risk
– 2,157
424
– 1,733
– 24
– 1,757
Credit rating risk
– 1,992
157
– 1,835
– 20
– 1,855
– 165
267
102
Country risk
Other risk
Latent counterparty default risk
– 252
24
– 228
– 2,409
448
– 1,961
102
–4
–4
– 24
– 1,985
– 228
The allocations to risk provisions are also discussed in the section on the Statement of
Income.
127
Counterparty Default Risks – Managing Individual Risks
The three regional lending business segments (Germany/Europe, America, Asia/Pacific)
assume primary responsibility for independently monitoring and managing counterparty
default risks. The special finance units Global Specialised Finance and Principal Finance,
where risk analysis cannot be completely separated from the business structure, are
responsible for their own risk-return management.
The two pillars of individual risk management are the credit approval processes for
individual transactions and the ongoing monitoring process. Each credit approval
takes into consideration the total commitment which an individual borrower, or, if
applicable, a group of companies has with the WestLB Banking Group. The borrower’s
creditworthiness and the risk of the transaction or item of property are analysed and
documented in a credit application file prepared by the relevant loan or special finance
department. The risk evaluation gives rise to an internal rating that plays a significant role
in the remaining credit approval process, as well as in profit and portfolio management.
Depending on the magnitude of the borrower’s overall commitment and the credit
rating awarded, joint credit approval competence is delegated to the relevant customer
and lending units or, in the case of special finance, to the special finance units and
CCM. Credit applications that fall outside of certain parameters are reviewed by CCM.
CCM gives an opinion on these applications and then passes them on to the Managing
Board for a decision.
The foundation of the ongoing monitoring process is the credit monitoring file prepared
at least once a year on each individual borrower. Like the credit application file created
in the application phase, the credit monitoring file includes a review of the borrower’s
creditworthiness, as well as a review of the borrower’s credit rating and collateral. If
the review reveals that the borrower poses a greater risk than the borrower previously
did, the borrower is included in the loan or product department’s watch list and receives
closer scrutiny and support.
Problem cases are earmarked for closer monitoring and generally transferred to CCM.
The goal is to limit the Bank’s potential losses by developing restructuring concepts in
a timely manner.
As part of regular reporting, a quarterly report is prepared for the Managing Board
which looks at current risk developments in order to portray the Group’s needs for risk
protection and recommend allowances for specific credit risks. When deciding on the
amount of specific allowances in light of the risks posed, the following steps are taken:
128
analyse the borrower’s cash flow in order to determine its future solvency,
value the borrower’s net assets in order to estimate the anticipated proceeds of
liquidating existing collateral and,
if applicable, find out what prices credit default swaps or loans of the borrower
are getting on the secondary market.
In addition to the recommendations for the last quarter, a year-end summary of the
recommendations made throughout the year is prepared by the loan departments,
Central Credit Management, Group Internal Auditing and the Group Finance unit.
The Managing Board uses this report as a basis for determining allocations to the risk
provisions.
Counterparty Default Risks – Rating Systems
The loan and product units determine an internal rating for each customer. Specific rating
procedures are currently in place for these customer and product groups: corporate
clients, banks, private clients, real estate finance, project finance, structured commodity
finance, commodity trade finance and asset backed securities.
Ratings are given as part of the approval process for new loans, and as part of the
regular monitoring of existing loans, and are based on the risk analyses performed. The
risk analyses incorporate quantitative and qualitative elements that are determined on
the basis of a pre-set system.
The individual credit rating determined reflects a standardised default probability for
each customer that forms the basis of the Bank’s risk pricing and loan portfolio analysis.
WestLB has had an internal rating system in place for more than 13 years for corporate
clients that are grouped into one of its major portfolios. Other rating systems have been
added over the years. As of December 31, 2002, 66% of the Group’s credit line volume
was being rated internally.
Given the requirements that are expected to emerge from the Basel II Accord, the Bank
intends to add rating systems for its smaller client and special portfolios, as well as to
revamp and improve the systems that are already in place. It will gradually introduce
these systems in the course of 2003. By mid-year 2003, all functionalities related to the
internal rating systems will be deployed in a rating database, so that the rating data
required for compliance with Basel II will be systematically available.
129
In order to systematically capture the default probabilities, the Global Watchlist will
also be improved. The Global Watchlist is a database that provides worldwide monitoring
and management of risks that require close supervision. The improvements will make it
possible to archive and chronicle the exposure at default (EAD) and the loss given
default (LGD).
Fiscal year 2002 was characterised by a global economic downswing. It also affected
how ratings were distributed within the corporate clients and banks portfolios.
RATINGS BREAKDOWN IN CORPORATE CLIENTS/COMMERCIAL REAL ESTATE FINANCE
AT DEC. 31, 2002 AND DEC. 31, 2001
1
2
3
3/4
4
4/5
5
1,539
7,132
23,298
25,373
6,768
2,146
1,527
988
2,627
3,157
14,969
18,649
6,079
2,477
1,617
1,597
ext. lines at Dec. 31, 2001
ext. lines at Dec. 31, 2002
6
Volume for Banking Group in € millions
As was the case in the previous year, most of the customers in WestLB Group’s corporate
clients portfolio are rated 3 or 3/4. Shifts in ratings are due to the effects of the Bank’s
division and to changes in the estimated risks posed by companies in the telecom and
energy sectors, as well as those posed by some companies based in Argentina.
130
CORPORATE CLIENTS/COMMERCIAL REAL ESTATE – AVERAGE RATINGS FOR 2001
AND 2002
Europe
America
Asia
Total
3.67
3.98
3.81
3.77
3.73
4.97
3.94
4.05
Dec. 31, 2001
Dec. 31, 2002
The average rating dropped noticeably in the America portfolio in 2002, chiefly because
of the crisis in South America and economic influences that forced some companies’
ratings to fall. The average rating for the entire corporate clients portfolio was 4.05,
which corresponds to a credit rating of 3/4.
Counterparty Default Risks – Portfolio Management
One way that WestLB systematically measures and manages credit risks is by using
an actuarial credit risk model based on Credit Risk+. This model makes it possible to
supplement individual analyses with an overall portfolio view and to quantify the risk
potential of a portfolio by supporting probability breakdowns for potential losses. By
calculating the risk contributions of individual commitments or parts of a portfolio,
cluster risks, industry risks and country risks can be identified. The consumption
of economic capital and anticipated losses are calculated for each borrower with
a confidence level of 99.97%.
Use of the credit risk model – in part as an element of global risk-return management –
is constantly being expanded and refined. It places WestLB in a position of more
accurately forecasting credit risk-related losses and cluster risks, and more efficiently
allocating economic capital across the business segments.
131
There are separate industry committees within CCM that monitor risk changes in the
key sectors in which the Group is committed. The Managing Board and Credit Portfolio
Committee are regularly informed about specific industry concentrations and the Group’s
risk exposure in these industries, and they use this information to manage the Group’s
portfolios. Given the accumulating acute and latent risks in the telecommunications,
aviation and energy sectors in North America, the Managing Board resolved to set
industry limits for these sectors in 2002.
Counterparty Default Risks – Country Risk
WestLB defines country risk as the risk that a borrower will not (or will no longer) be
able to service its foreign currency debt because of a worsening of the general economy
or the political situation in the borrower’s home country. Based on this definition, any
credit granted by the Group that is not denominated in the borrower’s currency faces
a potential country risk and should be included in the country exposure list.
When determining the Group volumes subject to a country risk, WestLB goes well
beyond the classical transfer risk. When assigning risk to a country, the Bank not only
takes the borrower’s country of residence into account; the country risk of the borrower’s
ultimate parent company, the providers of collateral or any other guarantors is also
considered.
The data found in the country risk recording system CORESY is used to analyse the
credit volume affected by a particular country risk. Commitments are assigned to a
specific country in accordance with the CORESY report. When determining the credit
volume to be analysed, finance projects that are of special importance to the country
(co-finance package with supranational institutions, short-term trade finance for the
import of food, etc.) and those that are backed by political/moratorium guaranties are
excluded. Lines/disbursements that have not been drawn upon are also excluded, as
are trade portfolios for which the country risk was considered when the portfolio was
marked to market. When determining the amount to allocate to the provisions for
country risks, standard bad loan charge ratios are used.
WestLB’s Economics Department assigns internal ratings to all relevant countries,
which are reviewed at regular intervals. Numerical country limits are determined on
the basis of the country rating, the country’s size, as reflected in its gross domestic
product, as well as the risk-bearing potential of the WestLB Group. Depending on the
rating category, the country limits are divided on the basis of fixed ratios into limits for
short-term business and limits for long-term business. A distinction between product
groups, i. e. the lending business, trade finance and trading business, is also made.
132
The Country Limit Committee is in charge of the WestLB Group’s centralised country
limit management. In addition to determining the scale of the limits, the Country Limit
Committee handles questions related to the methodologies and procedures of country
risk management. The final decision on country limits rests with the Managing Board,
which works on the basis of the Country Limit Committee’s recommendations. Central
Credit Management continually monitors the usage of limits for non-trading products
and reports its findings to the Managing Board and the Risk Committee. RMS&C monitors
and reports on trading products.
The use of individual country limits is managed by the regional client business units.
Their country managers work with the individual product areas to determine how much
of a country’s overall limit is needed and used. The country managers also control the
distribution of resources among the various product areas from a risk-return point of
view.
BREAKDOWN OF GROUP COUNTRY LIMITS
excl. EMU/GB/USA
Rating Category
A Countries
B1
B2
B3
B3/C1
C1
C2
C3
9,195
2,315
4,584
1,039
061
20,522
3,596
5,362
12,065
1,976
2,951
7,728
1,810
4,352
0 856
049
17,617
4,939
5,814
6,924
1,086
1,956
2,207
032
07,337
3,240
3,151
5,241
0 446
1,391
1,700
032
17,846
4,124
8,087
4,794
0 911
1,699
1,577
573
7,048
2,058
4,054
2,952
0 409
1,062
1,355
Group CL Dec. 31, 2000
Usage Dec. 31, 2001
Usage Dec. 31, 2000
Usage Dec. 31, 2002
382
Volume in € millions
133
The increase in the amount and usage of Group country limit category B2 can be
attributed to the improvement in the ratings of South Korea, Poland, Estonia and
Botswana. The drop in Argentina’s rating led to an increase in the exposure in
category C3.
The usage of the Group country limits in rating categories C1, C2 und C3 reflects the
commitments that the Bank and its subsidiaries have made in Argentina and Brazil, in
particular, and, to a lesser degree, in Turkey. In 2002 the Bank continued its policy of
systematically reducing its commitments in countries with poor ratings.
Monitoring and Managing Participation Risks
Generally speaking, the management of participation risks at WestLB refers to managing
all of the Group’s participations, which is a task that has been assigned to the Equity
Investments business group. The companies of the Banking Group are fully incorporated
into the risk and operational management of WestLB.
The risk management of companies that are not consolidated into the Banking Group
is also handled by the Equity Investments business group. Certain of our investments
are also followed by specialist units and monitored in terms of their risk. This approach
allows for optimal support of companies whose business activities are closely linked
with the activities of the respective product unit.
An example of this process is Boullioun Aviation Services Inc. (BAS), which is the parent
company of the Boullioun Group, an enterprise active in the aircraft leasing sector.
Boullioun has been assigned to the Global Specialised Finance business unit, which
manages Boullioun’s risks chiefly by determining credit guidelines, accepting supervisory
positions and performing decentralised risk controlling for the firm’s products and
services.
The Boullioun Group performed satisfactorily in 2002, despite the crisis in the aviation
industry. Due to its diversified portfolio of clients, the high-quality aircraft in its fleet, as
well as minimal idle rates, it managed to post positive results in the year under review.
On the basis of its proven business model, the Boullioun Group is also well positioned
to face future challenges.
The assessment of current and future risks posed by the participations that are not
captured by the Banking Group’s original management mechanisms is based first and
foremost on analysing the company data provided in the course of ongoing participations
controlling. The information collected also provides a starting point for actively supporting
the participations from a shareholder perspective and managing the participations in
134
keeping with the Bank’s equity investment strategy. The interests of WestLB’s shareholders
are represented at all major Group companies in that members of the Managing Board
hold seats on the supervisory boards of these companies. This kind of representation is
an integral part of the Group’s management.
To monitor and manage risks, as the Equity Investments business group does, in a way
that focuses on the health of the Bank’s business is particularly important in the case
of participations in companies that are exposed to self-generated risks, e. g. companies
that receive private equity. In its private equity business, the Bank uses investment
funds to provide equity capital to fast-growing companies. Since some of the funds are
still being invested in and the economic situation of growth companies was difficult in
the year under review, WestLB increased its risk provisions.
WestLB’s asset management activities, which were pooled in WestAM Holding GmbH
in 2001, continued to report start-up losses due to the difficult conditions on the financial
markets. However, with a rigorous system of cost management and further improvement
of its business model thanks to its incorporation as a limited liability company, the
company has shown that it has the necessary structures in place to respond flexibly
and sufficiently to market changes. As a result, we believe that the company is well
positioned for the future.
Liquidity Monitoring and Management
Liquidity management within the WestLB Group is carried out centrally by the
Global Financial Markets (GFM) and Capital & Mismatch Management (CMM) units in
accordance with the guidelines established by WestLB’s Asset & Liability Committee
(ALCO), a Managing Board committee whose responsibilities include the structural
liquidity mismatch position. While GFM ensures short-term liquidity, CMM is responsible
for planning and controlling structural liquidity. In other words, CMM ensures the
Bank’s compliance with banking regulatory requirements (Principle II) and takes care
of its economic liquidity.
The work that goes into determining and planning liquidity requirements is done on
the basis of a proprietary information system that was extensively revised in 2002 and
now offers the opportunity to simulate the Group’s future liquidity position by applying
a variety of scenarios. The information gathered from this system is supplemented by a
continuous exchange of information with the relevant business units of the Group, as
well as regular meetings of the persons involved in risk management. This ensures that
all necessary information is available for the timely procurement and allocation of
liquid funds.
135
The objective of liquidity management is to avoid a concentration of financing
requirements with very short-term maturities, to keep enough liquid assets on hand
for unexpected liquidity needs and, at the same time, to optimise the Bank’s structural
liquidity with the help of a medium and long-term-oriented funding programme.
Liquidity planning is also designed to broaden the refinancing base with banks and
non-banks by maintaining a permanent presence on the money and capital markets.
The central bank function for the savings banks in North Rhine-Westphalia and
Brandenburg is a key focus of WestLB’s treasury activities.
The Group uses customary financial instruments to procure the required liquidity. In
addition to borrower’s note loans (Schuldscheindarlehen), WestLB issues debentures.
As a rule, these issues are standardised tap issues. In addition to the existing debt
issuance programme for medium and long-term issues, the Bank has a global CP
programme for short-term issues.
Liquidity is procured primarily in the major currencies: i. e. Euro, U.S. Dollar, Japanese
Yen and Pound Sterling. To a certain extent, the funds raised are converted into the
target currency using derivatives. Responsibility for liquidity optimisation is delegated
to the respective local branches and subsidiaries. As far as possible, liquidity flows are
kept within these local offices, with liquidity deficits and surpluses being netted; to this
end there is regular contact between the regional managers.
WestLB Group holds a large portfolio of highly liquid money market and capital market
securities which are suitable for repos and central bank tenders to ensure that there is
sufficient liquidity at all times. As a result, the Group has access to substantial refinancing
facilities when it needs them.
In 2002 guidelines on the uniform treatment of legal risks were adopted (e. g. so-called
rating downgrade clauses).
For emergencies, the Bank has developed a global liquidity contingency plan that
outlines the communications channels, responsibilities, procedures and steps for
remedying liquidity bottlenecks.
At December 31, 2002, WestLB’s Principle II liquidity ratio was 1.12. The provision
of liquidity was ensured at all times in 2002.
136
Business Risks
Changes in the market environment and in the prevailing technological and institutional
conditions can trigger fluctuations in business volume and margins. The extent to
which such changes pose business risks depends on the Group’s ability to react to
changes in external parameters as early as possible. The business risks are reduced
if the Group is flexible enough to adapt its use of resources in the various business
units and product lines to current developments.
WestLB is currently working on a process to identify and measure business risks which
result from cost structures that cannot be adapted within one year’s time to fluctuations
in volume and margins.
Operational Risks
Operational risks in the lending business have always been part of the overall
management responsibility of an institution. In recent years, however, cases involving
major losses and the discussions among regulators spurred by Basel II have increased
general interest in the topic of operational risks.
In the WestLB Group, the individual business units are responsible for ensuring that
the risk of faulty or undesirable results is kept to a minimum. To assist them in their
efforts, the business units are supported by centralised specialist units, which, because
they cross business units and product lines, bring shared specialised expertise to bear
when it comes to reducing operational risks throughout the Bank. The internal auditing
unit plays a key role in this relationship because of its independence. Any corrections
it makes are incorporated into a structured follow-up process.
The goal of contingency planning is for business to continue as close to usual as possible
during an emergency or to be restored to normal as easily as possible in the event of
an interruption. Key components of contingency planning are the ability to assess
potential damage when operations cannot go on as normal and to have procedures in
place for restarting operations and IT applications.
137
An integral part of any company’s business policy is to supply itself with the right
information in the right quantities at the right time and to do so with the greatest
degree of protection against misuse. Minimising risk on this level is the responsibility of
the Chief Information Office (CIO) unit, which handles information security management
and decentralised information management (DIM).
Ensuring and increasing data quality are of paramount importance to avoiding errors in
business processes and thus reducing operational risk. Accordingly, there is a separate
department devoted to this topic at WestLB.
In order to protect the Group against substantial operational risks, it makes sense on
a cost-benefit level for some areas to use insurance as a means of risk transfer. On
the Group level, the International Insurance Program provides WestLB with extensive
insurance coverage that has been pulled together into one centralised insurance
portfolio.
To minimise legal risks, the business units are supported by the Legal Department. The
control and support that the Legal Department offers includes reviewing contracts in
light of risks, developing standard agreements, as well as keeping abreast of the latest
legal developments.
Personnel risks take on many different forms. Service offerings that cover the entire life
of employees, from hiring and continuing education to when they leave the Bank, ensure
a reduction in personnel risks.
By drawing on the various management and control functions already established for
individual aspects of the Group’s overall operational risk, WestLB has been working
to create a management system for operational risk since the beginning of 2001. The
strategy developed responds to the heterogeneity and hard-to-capture quantitative
dimensions of operational risk in two ways:
On the one hand, the necessary structural and procedural framework is determined in
close cooperation with the specialist units and areas described above.
On the other hand, in order to establish high standards of risk analysis, management
and controlling throughout the Bank, a risk event database, early warning system based
on risk indicators and a cause-based self-assessment tool have been developed.
138
The idea behind this management system is compatible with the qualitative requirements
for managing operational risk, at least as far as the current version of the new regulatory
rules which are expected to enter into force at the end of 2006 reveals.
Continual Improvement of the Risk Management System
The integrated management of market price, counterparty default, country, participation,
liquidity and operational risks has gained in importance. In keeping with this development,
the RMS&C unit, Central Credit Management and the regional loan departments were
placed under the direction of the Corporate Risk Officer in the Managing Board in
2002.
At the beginning of March 2003, the Managing Board resolved to increase the active
loan portfolio management performed by the Credit Portfolio Committee and CCM unit,
and to supplement the RMS&C unit’s existing management of risks in the trading
business with the responsibility for controlling the loan portfolio and operational risks.
The realisation of these measures is taking place in CCM’s newly created Portfolio
Management unit. The Portfolio Management unit’s duties now also include monitoring
and managing participation risks independently of the relevant market sector, establishing
policies for such risks and incorporating them into Group-wide portfolio management.
RMS&C is also responsible for:
developing logical and practical methods for measuring risks across all risk
categories,
determining the risk capital needed to support the strategic management of
operations,
using integrated risk reporting as an instrument of efficient risk management
throughout the Bank.
139
Outlook
The weak economy, increasing incidence of bankruptcies and falling stock prices had
a major impact on the financial performance of banks in 2002. At the same time, the
German banking market is marked by growing consolidation and cost pressure. This is
the environment in which WestLB AG will complete its renewed focus on profitability
within the Group as it looks ahead to the elimination of institutional and guarantor
liability in mid-2005. The guiding principle of the measures which the Group successfully
pressed ahead with in 2002 remain the goals of an 18% return on shareholders’ equity,
a cost-income ratio of 65% and a core capital ratio of 6.5%.
In 2003 the WestLB Group will move ahead with the restructuring measures introduced
in the year under review. In addition to reducing its cost basis, this will include the
further development of its strategic orientation in order to improve structural profitability.
The Group will continue to concentrate on its core competencies in profitable, high-growth
businesses, including special finance, equity investments, capital market products and
the equities business. Activities which are outside the Group’s strategic focus will be
discontinued.
As a first step, WestLB divested itself of its retail operations in the year under review
by selling its private banking business and its shares in Westfälische ProvinzialVersicherung. As of January 1, 2003, WestLB also sold WPS-Bank to the two savings
banks associations. These measures further enhanced the Bank’s image as a focused
wholesale bank.
The acquisition of the remaining shares of Westdeutsche ImmobilienBank (WIB) also
marks a step in this direction; the owners agreed on the move at the beginning of
March. One of the objectives in controlling 100% of WIB’s shares is to restructure the
WestLB Group’s entire real estate business and incorporate it into WIB, which focuses
on wholesale business.
The equities business suffered for the second year in a row from the overall weakness
of the markets. After reducing the cost basis both here and in the other capital markets
business in the year under review, further measures proved necessary because of the
persistently poor conditions. In this connection, the Bank has decided to market its core
equities business and all M&A services under the WestLB brand and to concentrate the
activities of its subsidiary Panmure U.K. on securing a competitive position in the UK
market.
140
The conclusion of a framework agreement with the savings banks in North RhineWestphalia placed WestLB’s cooperation with the savings banks on a new footing.
Working together with the savings banks, WestLB will further develop its role as
the central institution for the savings banks. Select areas in which to strengthen
collaboration have already been identified.
On the cost front, WestLB Group reached an important milestone by reducing costs
approx. 20% in the year under review. The systematic management of costs is proving
successful. By year-end 2003, the goal of reducing the number of staff by 1,500 will be
achieved; 596 jobs were already eliminated in 2002. In addition to the project currently
under way to improve the cost-saving potential in the IT area, the Bank has set up a
project for limiting other operating expenses. Additional significant cost savings are to
be achieved by the end of the year.
Due to the weak state of the economy and the corporate scandals, WestLB Group
incurred extraordinary risks in 2002. Despite the possibility that the uncertainty plaguing
the world economy will persist, it appears likely that the worst is over in terms of risks.
The Bank has introduced further measures for limiting risk and also made substantial
headway in improving the instruments used in its active risk and portfolio management. For
example, it improved the risk profile of the Group by developing and implementing a
consistent credit risk strategy as well as creating a system of active portfolio management
to control cluster risks and capital allocation. In addition, the lending business will
focus even more on cross-selling opportunities.
After making substantial progress in the year under review in reducing its cost basis
and making risk-based adjustments in its loan and equity investment portfolios, the
Group can expect its results to improve in 2003, its second year of restructuring, if
there is a revival in the world economy. The structural measures taken as part of the
Group’s efforts to refocus will also contribute to an improvement in results. However,
if the economic situation remains unfavourable and there are critical developments in
certain industries and countries, as the crisis in Iraq could trigger, it is not unlikely that
the lending and equity investments business will be hard-hit. Therefore, it is impossible
to quantify the results for 2003 reliably. On the whole, the foundation is in place for the
Group to achieve its goals by the end of the transitional period for WestLB AG’s liability
mechanisms in 2005.
141
Group Balance Sheet
as at December 31, 2002
ASSETS
see Notes
No.
€
Cash
a) cash on hand
b) balances with central banks
including:
with Deutsche Bundesbank
€ 392,477,739.43
c) balances in postal giro accounts
€
WestLB AG
Group
31. 12. 2002
€
3
11,599,728.03
2,075,453,680.36
(22,611)
(2,055,389)
56.59
2,087,053,464.98
Debt instruments issued by public
institutions and bills of exchange eligible
for refinancing with central banks
3
a) treasury bills and discounted treasury
notes as well as similar debt instruments
issued by public institutions
including:
eligible for refinancing with Deutsche Bundesbank
€ 8,426,831,049.89
b) bills of exchange
including:
eligible for refinancing with Deutsche Bundesbank
€ 1,601,955.64
Claims on banks
a) payable on demand
b) other
8,607,406,077.60
(18)
2,078,019
(4,470,060)
17,315,975.52
8,624,722,053.12
(32,890)
4,502,949
77,039,151,170.54
(6,869,331)
(113,390,297)
120,259,628
88,762,390,328.36
159,799,324
3, 6, 18
8,588,649,545.52
68,450,501,625.02
Claims on customers
3, 7, 8, 18
including:
secured by mortgages
€ 3,904,036,122.79
loans to public authorities and entities
under public law € 8,397,903,462.77
Bonds and other interest-bearing
securities
3, 9, 15, 18, 19
a) money market instruments
aa) of public institutions
156,527,337.86
including:
eligible as collateral for Deutsche Bundesbank
advances € 20,457,716.90
ab) of other issuers
1,712,047,518.86
including:
advances € 141,210,066.13
1,868,574,856.72
b) bonds and notes
ba) of public institutions
30,819,832,257.34
including:
advances € 4,665,715,171.70
bb) of other issuers
33,737,067,316.60
including:
advances € 10,196,580,103.49
64,556,899,573.94
c) bonds issued by the Bank
1,122,727,493.71
principal amount € 1,069,422,115.46
To be carried forward:
142
WestLB GZ
Group
31. 12. 2001
€ thousands
(843,286)
(2,836,100)
3,679,385
(45,526,985)
(60,956,716)
67,548,201,924.37
106,483,701
(3,952,311)
114,115,397
244,061,518,941.37
400,755,317
LIABILITIES
see Notes
No.
€
3, 20, 23, 30
a) payable on demand
b) with agreed maturity or period of notice
c) deposits of building and loan associations
€
WestLB AG
Group
31. 12. 2002
€
14,912,207,696.61
103,920,958,511.16
–.––
118,833,166,207.77
3, 21, 23, 30
a) deposits of building and loan associations
and saving deposits
aa) deposits of building and
loan associations
–.––
ab) with agreed period of notice
of three months
33,001,398.14
ac) with agreed period of notice
ac) of more than three months
–.––
WestLB GZ
Group
31. 12. 2001
€ thousands
(13,647,907)
(144,774,261)
(25,237)
158,447,405
(7,105,728)
(74,397)
(6,334)
33,001,398.14
b) other liabilities
ba) payable on demand
bb) with agreed maturity or
period of notice
15,732,957,178.98
(26,982,523)
47,994,610,102.59
(71,788,027)
63,727,567,281.57
3, 22, 30
a) bonds and notes issued by the Bank
b) other certificated liabilities
including:
money market instruments
€ 42,923,896,727.99
own acceptances and promissory notes
outstanding € 20,214,912.63
Trust liabilities
including:
trust loans € 136,435,360.28
63,760,568,679.71
105,957,010
58,148,228,498.12
(83,023,183)
(45,747,107)
128,770,289
14,403,680,789.19
43,744,547,708.93
3, 23, 30
511,412,376.28
4,688,403
Other liabilities
3, 23, 24, 30
8,575,428,164.77
8,846,249
Deferred items
3, 25, 30
549,682,649.80
1,466,949
Provisions
a) for pensions and similar
obligations
b) tax reserve
c) other
3, 27, 30, 47
599,431,046.87
431,206,724.34
1,327,206,454.09
2,357,844,225.30
Special item with partial
reserve character
(1,558,423)
(541,096)
(1,806,331)
3,905,850
3, 26
3,985,694.34
57,533
3, 28, 29, 30
5,066,989,179.88
6,829,637
257,807,305,675.97
418,969,326
143
Group Balance Sheet
as at December 31, 2002
ASSETS
see Notes
No.
WestLB AG
Group
31. 12. 2002
€
244,061,518,941.37
WestLB GZ
Group
31. 12. 2001
€ thousands
400,755,317
4,836,187,621.34
5,826,114
4,394,938,591.17
4,161,387
3, 11, 15
1,854,938,299.25
346,775
3, 12, 15
109,748,137.15
298,770
3, 13
511,412,376.28
4,688,403
3
417,076,434.92
565,123
Intangible assets
including:
goodwill € 58,723,521.48
3, 15
61,976,027.01
90,427
Fixed assets
3, 15
2,825,616,315.88
3,113,829
Other assets
3, 14
5,190,026,056.78
7,886,921
Deferred items
3, 17
1,337,767,630.04
4,177,173
265,601,206,431.19
431,910,239
€
€
Shares and other non-interest-bearing
securities
3, 10, 15, 18
Equity investments in non-affiliated
companies
3, 11, 15, 18, 50
including:
banks € 520,349,194.44
financial services institutions
€ 4,317,369.87
Equity investments in associated
companies
Equity investments in affiliated
companies
including:
financial services institutions
€ 571,793.51
Trust assets
including:
trust loans € 136,435,360.28
Equalisation claims against public
authorities including bonds and notes
issued in substitution thereof
Total assets
144
LIABILITIES
see Notes
No.
€
€
WestLB AG
Group
31. 12. 2002
€
257,807,305,675.97
WestLB GZ
Group
31. 12. 2001
€ thousands
418,969,326
including:
due in less than two years
€ 12,070,491.67
3, 29, 30
2,535,220,197.80
3,421,257
3, 29, 30
261,915,305.29
597,329
Equity capital
a) subscribed capital
b) capital reserves
c) reserves from retained earnings
ca) legal reserves
cb) reserves required by
WestLB’s statutes
cc) other reserves
3, 29
950,500,000.––
2,034,802,914.87
d) Group reserves
e) Equalising items for shares of
other shareholders
f) Group profit
(1,183,802)
(3,318,123)
–.––
(–)
409,346,407.92
973,853,592.08
(529,500)
(1,359,900)
1,383,200,000.––
625,799,096.95
(2,398,021)
2,463,240.31
(62,082)
–.––
4,996,765,252.13
Total liabilities
265,601,206,431.19
a) contingent liabilities relating to negotiated
bills of exchange
b) liabilities from guarantees and
indemnity agreements
c) liability relating to collateral given
for third-party liabilities
Other commitments
a) commitments from ungenuine
repurchase agreements
b) placing and underwriting commitments
c) irrevocable credit commitments
Administered funds
(70,900)
8,922,327
431,910,239
600,000.––
(–)
17,340,492,798.86
(21,764,799)
26,980.53
17,341,119,779.39
(25)
21,764,825
78,200,037,235.58
(–)
(–)
(102,363,264)
102,363,264
35,773,517,251.12
40,791,464
35
–.––
97,823.––
78,199,939,412.58
145
Group Statement of Income
FOR THE PERIOD JANUARY 1 – DECEMBER 31, 2002
see Notes
No.
€
Interest from
a) lending and money market transactions 7,260,133,730.44
b) interest-bearing securities and
book-entry securities
2,526,858,211.92
€
WestLB AG
Group
1. 1. – 31. 12. 2002
€
WestLB GZ
Group
1.1. – 31. 12. 2001
€ thousands
(17,357,084)
(5,584,932)
9,786,991,942.36
Interest paid
8,751,362,200.86
1,035,629,741.50
(20,698,484)
2,243,532
397,389,126.50
(253,591)
(206,673)
(58,134)
518,398
Income from equity investments in
associated companies
96,368,458.02
20,473
Income from profit pooling, profit transfer
and partial profit transfer agreements
10,565,112.79
18,199
Current income from
a) shares and other non-interest-bearing securities
b) equity investments in non-affiliated companies
c) equity investments in affiliated companies
189,386,232.11
191,860,202.14
16,142,692.25
Commission income
906,870,832.89
Commission paid
214,660,607.86
Net result from trading operations
(1,273,070)
692.210.225,03
(370,089)
902,981
177,388,264.61
222,435
Income from leasing business
43
233,207,604.05
206,494
Expenses from leasing business
43
190,034,586.30
156,478
729,067,300.60
844,804
5,835,872.14
22,195
Other operating income
Income from reversal of special item with
partial reserve character
General administrative expenses
a) personnel expenses
aa) wages and salaries
890,413,062.77
ab) compulsory social security
contributions and expenses for pensions
and other employee benefits
327,321,875.39
including:
for pensions
€ 179,611,865.27
b) other administrative expenses
(1,302,688)
(429,870)
1,217,734,938.16
873,104,214.65
2,090,839,152.81
Depreciation and value adjustments on
intangible and tangible fixed assets
15
182,798,673.66
208,159
Other operating expenses
525,179,932.49
285,513
2,010,861,665.70
1,010,206
– 1,622,052,305.72
219,756
Write-downs and value adjustments
on loans and certain securities as well
as allocations to loan loss provisions
42
including:
allocation to fund for general bank risks
€ –.–
146
(1,386,841)
3,119,399
FOR THE PERIOD JANUARY 1 – DECEMBER 31, 2002
see Notes
No.
WestLB AG
Group
1. 1. – 31. 12. 2002
€
– 1,622,052,305.72
WestLB GZ
Group
1.1. – 31. 12. 2001
€ thousands
219,756
Income from revaluation of equity
investments in non-affiliated companies,
equity investments in affiliated
companies and securities treated
as fixed assets
42
94,898,948.32
235,877
Expenses from the assumption of losses
35,173,935.47
11,917
–.––
–
– 1,562,327,292.87
443,716
€
€
Allocations to special item with partial reserve character
Profit or loss on ordinary activities
Extraordinary income
Extraordinary expenses
Extraordinary result
23,312,509.17
(7,188)
111,404,991.79
(43,059)
44
– 88,092,482.62
Taxes on income and revenues
62,209,325.57
Other taxes not shown under
other operating expenses
16,993,231.15
(188,995)
79,202,556.72
Net loss for the year
Withdrawals of net income from
reserves from retained earnings
a) legal reserves
b) reserves required by WestLB’s
articles and bylaws
c) other reserves
d) Group reserves
– 1,729,622,332.21
(22,597)
211,592
196,252
29
–.––
(–)
–.––
610,000,000.––
1,120,380,821.53
(–)
(–)
(96,678)
96,678
1,730,380,821.53
Allocation to capital of Wohnungsbauförderungsanstalt Wfa/
Investitionsbank of Landesbank Schleswig-Holstein
Allocations of net income to reserves from retained earnings
a) legal reserves
b) reserves required by WestLB’s articles and bylaws
c) other reserves
d) Group reserves
–.––
–.––
–.––
–.––
389,841.20
389,841.20
Profit attributable to shareholders outside the Group
819,404.29
Loss apportionable to shareholders outside the Group
450,756.17
70,589
(–)
(21,000)
(70,700)
(51,355)
143,055
(8,587)
368,648.12
Group profit
– 35,872
–.––
(201)
8,386
70,900
147
Statement of Changes in
Shareholders’ Equity
Minority
Shareholders
Parent Company
€ millions
Subscribed
Capital
Capital
Reserves
Group Equity Capital Earned
Reserves
from Retained
Earnings
Balance at
January 1, 2001
1,184
3,318
1,798
Group
Profit
95
Group
Reserves
Earned
691
Cumulative Other
Group Result
Group Reserves
Equalising
Items from
Foreign
Currency
Translation
91
Equity
Capital
Group
Equity
Capital
Equity
Capital
Other
Neutral
Transactions
1,650
8,827
129
8,956
Group profit
196
196
196
Dividend for 2000
– 95
– 95
– 95
Allocation from net
income for the year
92
Withdrawals from
Group reserves
Allocation to state housing
promotion assets of Wfa/assets
of Investitionsbank of Landesbank
Schleswig-Holstein
– 143
51
0
0
97
– 97
0
0
– 71
– 71
– 243
– 243
– 71
Changes in scope
of consolidation
– 243
Acquisition of
minority interests
Share of minority
interests in profit
–8
Currency translation,
consolidation effects and
other changes in capital
Balance at
December 31, 2001
1,184
3,318
1,890
– Decrease in equity
capital of WestLB AG
– 500
– 3,016
– 345
– Increase in equity
capital of WestLB AG
267
1,733
448
71
0
– 75
– 75
–8
8
0
– 10
– 29
293
254
635
62
1,700
8,860
254
62
8,922
Division
– Final consolidations
51
Group profit
Distribution of Group
profit for 2001
Withdrawals from
retained earnings
– 610
Withdrawals from
Group reserves
34
– 1,730
– 71
– 71
– 71
610
0
0
0
0
148
– 1,120
390
2,035
1,383
2,448
– 1,730
1,120
951
2,448
– 1,730
Currency translation,
consolidation effects and
other changes in capital
Balance at
December 31, 2002
– 3,861
34
Changes in scope
of consolidation
– 17
– 3,861
0
– 602
– 212
– 103
– 356
– 14
– 473
– 147
– 294
1,067
4,995
– 60
– 272
– 473
2
4,997
Notes to the WestLB AG Group Annual
Accounts at December 31, 2002
Preparation of Group Annual Accounts
Pursuant to Article 1 § 8 of the Act on Redefining the Legal Status of Public-Law Banking
Institutions in North Rhine-Westphalia (Gesetz zur Neuregelung der Rechtsverhältnisse
der öffentlich-rechtlichen Kreditinstitute in Nordrhein-Westfalen, Bank Redefining Act)
which went into effect on August 1, 2002, Westdeutsche Landesbank Girozentrale
(WestLB GZ) underwent a change in legal form to become a stock corporation. This
change took effect with its entry in the commercial registers on August 30, 2002. Since
then, the institution, now subject to private law, has been operating under the name
WestLB AG. Its registered office is in Düsseldorf and Münster.
WestLB AG is a legal entity identical to WestLB GZ. All rights and obligations that the
Bank Redefining Act assigned to the former WestLB GZ remain applicable to WestLB AG.
In accordance with Article 1 § 11 of the Bank Redefining Act, the former guarantors of
WestLB GZ remain accountable for WestLB AG’s obligations in line with the public-law
liability mechanisms of institutional and guarantor liability. This liability meets the
specifications listed in the Federal Republic of Germany’s agreement of July 18, 2001
with the European Commission (see pp. 141, 142).
The purpose of WestLB AG is to conduct banking transactions of all kinds and
complementary transactions including the acquisition of equity interests. It has the
duties of a municipal bank and a central institution for the savings banks. As a member
of the savings banks organisation, its corporate purpose also includes the creation and
provision of banking products for savings banks and public-sector clients. WestLB AG
has branch offices in Germany and in foreign countries. It is entitled to establish
additional branches.
WestLB AG’s consolidated annual accounts were prepared in accordance with the
provisions of the German Commercial Code (HGB), the Ordinance Regarding Accounting
for Banks and Financial Services Institutions (RechKredV) and the relevant provisions
of the German Stock Corporation Act (AktG). Information that may appear either in the
balance sheet or the Notes has been included in the Notes.
WestLB Group will continue to apply the same accounting and valuation principles
used by WestLB GZ Group for its annual accounts at December 31, 2001.
Due to the change in legal form, combined with the concurrent division of assets and
withdrawal of subsidiaries from the scope of consolidation, the obligation to compare
consecutive group annual accounts as stated in § 294 (2) of the German Commercial
Code (HGB) in conjunction with Statement HFA 3/1995 by the Institute of German
Certified Public Accountants (IDW) has been met by listing the prior year’s results from
the annual accounts prepared for the year ending December 31, 2001 and by including
additional explanations in the Notes.
149
Additional explanations that arose from the division are depicted – wherever available
and relevant – in a three-column format pursuant to the IDW’s Statement HFA 5/1988,
as amended in 1998. References in the text to prior-year figures are always the prior-year
figures from the WestLB GZ Group annual accounts prepared for the year ending
December 31, 2001.
Division of Westdeutsche Landesbank Girozentrale
Pursuant to the Act on Redefining the Legal Status of Public-Law Banking Institutions in
North Rhine-Westphalia (Gesetz zur Neuregelung der Rechtsverhältnisse der öffentlichrechtlichen Kreditinstitute in Nordrhein-Westfalen, Bank Redefining Act), certain
operations and other assets of WestLB GZ defined in the Bank Redefining Act were
split off and transferred to Landesbank Nordrhein-Westfalen on August 1, 2002, with
the transfers backdated for purposes of commercial and tax law to January 1, 2002
(record date of the division).
The transfers included the assets and liabilities of the Wohnungsbauförderungsanstalt
(Wfa) and INVESTITIONS-BANK NRW, which were both legally dependent parts of
WestLB GZ prior to the division, as well as WestLB GZ’s public mortgage bond (Pfandbrief)
business, which included underwriting, insofar as the business was operated under the
provisions of the Act on Mortgage Bonds and Similar Debt Securities Issued by Public
Credit Institutions (Gesetz über Pfandbriefe und verwandte Schuldverschreibungen
öffentlich-rechtlicher Kreditanstalten). The equity capital (€ 500.0 million) and
participations, as well as consolidated subsidiaries, which fell under the operations
that were split off from WestLB GZ were also transferred to Landesbank NRW.
The division was conducted at book value; in 2002 the only impact on results came
from the deconsolidation of the subsidiaries that were transferred to Landesbank NRW.
With respect to the three businesses listed above and the subsidiaries, all legal obligations
and claims arising from them were transferred to the Landesbank NRW Group.
Further, the Bank Redefining Act also provided for splitting off the assets and liabilities
of Westdeutsche Landesbausparkasse (LBS), until then a legally dependent division of
WestLB GZ, to create a new, legally independent public-law institution. This transaction
was also backdated to January 1, 2002. Since its inception on August 1, 2002, the new
entity has been known as LBS Westdeutsche Landesbausparkasse.
The transfers of assets and liabilities to Landesbank NRW and LBS were based on the
closing balance sheets of WestLB GZ and LBS at December 31, 2001. The transfers
were transformations under § 1 of the German Transformation Act (Umwandlungsgesetz).
150
The following consolidated subsidiaries of the WestLB GZ Group were transferred
to Landesbank NRW as part of the division:
Nordwestlotto in Nordrhein-Westfalen GmbH, Münster
Westdeutsche Lotterie GmbH & Co. OHG, Münster
Westdeutsche Spielbanken GmbH, Münster
Westdeutsche Spielbanken GmbH & Co. KG, Münster
Westdeutsche Spielcasino Service GmbH, Münster
The following associated company was transferred during the division:
Investitionsbank des Landes Brandenburg, Potsdam
Additionally, LBS Immobilien GmbH, Münster, was transferred as part of the division.
Consolidation Principles (1)
To the extent they are not prepared as such from the outset, the accounts of the
individual Group companies are, as required by law, uniformly prepared in accordance
with the accounting and valuation methods applicable to WestLB AG. Except in cases
where their impact is not insubstantial pursuant to § 304 (2) of the German Commercial
Code (HGB), claims and liabilities, expenses and income, as well as intra-group results
existing or arising between companies included in the Group accounts, are eliminated.
Where necessary, a deferred tax item is formed to cover any consolidation measures
affecting net income.
The annual accounts of foreign subsidiaries prepared in a foreign currency were
converted using the reference rates of the European Central Bank at December 30, 2002.
Valuation differences arising from exchange-rate adjustments in previous years are
netted against Group reserves.
When Group companies are consolidated for the first time, the book value method is
used, with valuation as at the Group balance sheet date. In the year under review, a net
€ 20.0 million in income was captured in full in the relevant items in the Group statement
of income. Owing to the consolidation as at the Group balance sheet date, equalising
items are formed for the annual results of companies consolidated for the first time,
and then placed under other operating expenses or income, pursuant to HFA 3/1995.
The at-equity valuation of 24 associated companies (2001: 18) continues to be performed
according to the book value method. In the case of companies classified as associated
companies for the first time, the basis for valuation was the reporting date for the Group
annual accounts. Any valuation methods used for associated companies which deviate
from those applied by WestLB are not adjusted. We are aware of no facts requiring the
151
elimination of intra-group results with associated companies. As the equity method
is being introduced, intra-group results still outstanding for two companies previously
subject to pro rata consolidation will be recognised as income over a period of four
years at € 3.7 million per year.
When companies that are consolidated into WestLB AG at-equity demonstrate changes
in their equity capital that have no or no clearly identifiable impact on earnings, such
changes are reflected in our capital and reserves on a pro rata basis, but are not
recognised in income.
Unless they are netted as part of capital consolidation, the earnings of the consolidated
subsidiaries are allocated to Group reserves. The Group reserves contain the results of
consolidation measures both affecting and not affecting profit. Group profit is identical
to that of WestLB AG.
Companies Included in the Group Annual Accounts (2)
At the end of fiscal year 2002, WestLB AG had a total of 242 affiliated companies, of
which 89 are included in the Group annual accounts. The following table classifies the
affiliated companies:
GROUP COMPANIES OF WESTLB AG
Previous
Year
Additions
Subtractions
Conversions
Report Year
224
45
28
1
242
81
11
6
3
89
141
34
21
–2
152
2
–
1
–
1
Jointly managed companies
34
1
– 22
–2
11
Associated companies
(valued at equity pursuant to
§ 312 (1) of the German
Commercial Code (HGB))
18
8
4
2
24
8
1
1
–1
7
Affiliated companies
included in the Group accounts
not included in the Group accounts
pursuant to § 296 (1) No. 2 and 3
or (2) of the German Commercial
Code (HGB)
not included in the Group accounts
pursuant to § 295 (1) of the German
Commercial Code (HGB)
Associated companies (not valued
at equity pursuant to § 311 (2) of the
152
A total of 152 affiliated companies are not included in the Group accounts, because
they are only of minor importance to the WestLB Group’s net assets, financial condition
and earnings or because the shares in them are held solely for the purpose of being sold
or because the required information could only be obtained at high expense or effort.
The aggregate unconsolidated assets of the companies which are not consolidated due
to their minor importance accounted for 0.3% of total Group assets.
Moreover, one affiliated company is not included in the Group accounts because its
inclusion is prohibited pursuant to § 295 of the German Commercial Code (HGB). Its
line of business (a relief fund) differs from that of the WestLB Group.
In 2002, 16 affiliated companies were consolidated for the first time. In two cases, capital
consolidation balances totalling € 26.7 million were offset against Group reserves; in
four cases, capital consolidation balances amounting to € 8.1 million led to an increase
in Group reserves. The companies’ inclusion had no appreciable impact on the items
included in the Group balance sheet and statement of income.
Westdeutsche ImmobilienBank Group is consolidated on a pro rata basis as a jointly
managed company.
Pro rata consolidation has been discontinued for the Landesbank Rheinland-Pfalz and
Landesbank Schleswig-Holstein Groups (including Hamburgische Landesbank Group);
foreseeable structural changes to banks under public law and the upcoming merger of
Landesbank Kiel and Landesbank Hamburg into the new HSH Nordbank AG will result
in a pro rata reduction. At-equity valuation will now be applied. At-equity book values
for the shares in both groups were € 1,719.9 million. For the transition from pro rata
consolidation to at-equity valuation, the equity book values were set to equal the pro rata
company values.
Please see the table on page 117 for further information on the effect that the
at-equity consolidation of the Landesbanks has had on the balance sheet.
Seven associated companies (2001: eight) are not valued at-equity, since they are of
only minor importance to the Group’s net assets, financial condition and earnings.
A consolidation balance of € 0.3 million resulted from the first-time consolidation of
one associated company.
Deconsolidation of the subsidiaries and associated companies transferred to Landesbank
NRW resulted in expense of € 34.2 million and € 25.5 million respectively. Additional
deconsolidations of subsidiaries and the withdrawal of associated companies from the
scope of consolidation resulted in income of € 9.1 million and expense of € 6.1 million.
The structure of the WestLB Group is as follows:
153
GROUP STRUCTURE OF THE WESTLB GROUP, DÜSSELDORF/MÜNSTER
Other Group Subsidiaries
Banking Group Subsidiaries
Banco WestLB do Brasil S. A., São Paulo (100%)
(LC)
Boullioun Aircraft Holding Company Inc., Bellevue (100%)
Banque d’Orsay S. A., Paris (100%)
(LC)
Boullioun Aviation Services Inc., Bellevue (100%)
Banque Européenne pour l’Amérique Latine (BEAL) S. A.,
Brussels (100%)
(LC)
Jet Leasing PTY Limited, Sydney (100%)
GEV Gesellschaft für Energie- und Versorgungswerte mbH,
Dortmund (100%)
West Merchant Bank Ltd., London (100%)
(LC)
WestLB France S. A., Paris (100%)
(LC)
WestKB Westdeutsche Kapitalbeteiligungsgesellschaft mbH, Düsseldorf (100%)
GGF Asset Management S. A., Luxembourg (100%)
ZAO Westdeutsche Landesbank Vostok, Moscow (100%)
(LC)
WestLB Europe (UK) Fund Ltd., London (100%)
(LC)
WestLB Hungaria Bank Rt., Budapest (100%)
(LC)
WestLB Finance (Credits) Ltd., London (100%)
(LC)
WestLB Ireland plc, Dublin (100%)
(LC)
WestLB Finance Curaçao N.V., Willemstad (100%)
(LC)
Westdeutsche Landesbank Polska S. A., Warsaw (100%)
(LC)
WestLB Finance Netherlands B.V., Amsterdam (100%)
(LC)
WestAM Holding GmbH, Düsseldorf (100%)
(LC)
WestLB Finance UK plc, London (100%)
(LC)
WestAM (USA) General Partner Inc., Addison (100%)
WestLB Property Services Ltd., London (100%)
WestAM (USA) Ltd., Addison (100%)
(LC)
WestLB Asia Pacific Ltd., Singapore (100%)
(LC)
WestLB Asset Management (Australia) Pty. Ltd., Sydney (51%) (LC)
WestLeasing Westdeutsche Leasing Holding GmbH,
Düsseldorf (100%)
Woolgate Investments CV, Amsterdam (100%)
WestLB Asset Management (Japan) Co. Ltd., Tokyo (100%)
(LC)
WestLB Asset Management Kapitalanlagegesellschaft mbH,
Düsseldorf (90%)
(LC)
40 additional affiliated companies included in the consolidated
accounts
WestLB Asset Management (UK) Ltd., London (100%)
(LC)
PE Projektentwicklungsgesellschaft mbH & Co. Büro- und
Businesscenter Leipzig-Park KG, Düsseldorf (90%)
WestLB Asset Management (USA) LLC, Chicago (100%)
(LC)
WestLB Panmure (Hungaria) Rt., Budapest (100%)
WestLB Asset Management (US) LLC,
Houston (formerly Criterion) (100%)
(LC)
WestLB & Panmure Growth Fund GmbH, Düsseldorf (100%)
(LC)
WestLB Covered Bond Bank plc, Dublin (100%)
(LC)
WestRM – West Risk Markets AG, Zug (100%)
(LC)
WestLB Europa Holding AG, Düsseldorf (100%)
(LC)
WestLB Europe (UK) Holdings Ltd., London (100%)
(LC)
WestLB Fund Investments Ltd., London (100%)
(LC)
WestLB Asset Management (Luxembourg) S. A.,
Luxembourg (100%)
(LC)
WestLB Securities Australia Limited, Sydney (100%)
WestLB Beteiligungs-Holding GmbH (100%)
148 additional affiliated companies not included in the
consolidated accounts
WestLB International S. A., Luxembourg (100%)
(LC)
WestLB (Italia) Finanziaria S.p.A., Milan (100%)
(LC)
31 associated companies
WestLB Panmure Ltd., London (100%)
(LC)
WestLB Panmure Securities Inc., Dover (100%)
(LC)
For information: companies outside the Group that have
Letters of Comfort:
WestLB New York Capital Investment Ltd., Jersey (100%)
WestLB Research GmbH, Düsseldorf (100%)
West Pensionsfonds AG, Düsseldorf (49.90%)
(LC)
WestLB Securities Pacific Ltd., Hong Kong (100%)
(LC)
West Pensionskasse AG, Düsseldorf (49.90%)
(LC)
(LC)
(LC) = covered by WestLB AG’s Letters of Comfort for Group subsidiaries
WestLB Systems GmbH, Düsseldorf (100%)
WestLB UK Ltd., London (100%)
WPS WertpapierService Bank AG, Düsseldorf (100%)
Westdeutsche ImmobilienBank – Group –, Mainz (50%) –
pro rata consolidated – (with 10 subsidiaries)
154
(LC)
Changes in the WestLB Group’s Balance Sheet Resulting from the
Division and At-Equity Consolidation (3)
The changes in the WestLB Group’s balance sheet following the division of WestLB GZ
and the at-equity consolidation of Landesbank Rheinland-Pfalz and Landesbank
Schleswig-Holstein are as follows:
WestLB GZ
Group
WestLB
Group
after the
Division
Dec. 31, 2001
€ millions
Jan. 1, 2002
€ millions
WestLB
Group
after the
Division and
At-Equity
Consolidation
Jan. 1, 2002
€ millions
2,078.0
2,071.4
1,945.3
Assets
Cash
Debt instruments issued by public
institutions and bills of exchange eligible
for refinancing with central banks
4,502.9
4,502.9
4,500.7
Claims on banks
120,259.6
88,921.0
68,314.7
Claims on customers
159,799.3
127,671.7
93,439.8
Bonds and other interest-bearing securities
114,115.4
95,811.8
72,307.0
Shares and other non-interest bearing securities
5,826.1
5,589.9
4,655.0
Equity investments in non-affiliated companies
4,161.4
4,125.0
3,996.4
1,937.3
Equity investments in associated companies
346.8
268.7
Equity investments in affiliated companies
298.8
202.3
152.3
4,688.4
1,894.7
462.9
565.1
565.1
562.7
90.4
88.8
77.9
Fixed assets
3,113.8
3,033.8
2,690.7
Other assets
7,886.9
8,018.4
7,551.6
Deferred items
4,177.2
1,575.7
1,454.7
158,447.4
139,492.3
108,311.0
105,957.0
88,723.5
73,244.2
54,422.8
Trust assets
Equalisation claims against public authorities
including bonds and notes issued in
substitution thereof
Intangible assets
Liabilities (excluding equity capital)
128,770.3
83,266.7
Trust liabilities
4,688.4
1,894.7
462.9
Other liabilities
8,846.2
9,276.9
8,881.5
Deferred items
1,466.9
1,199.9
1,118.0
Provisions
3,905.9
2,869.0
2,501.8
57.5
48.4
31.2
6,829.6
6,580.1
5,436.1
3,421.3
3,171.2
2,536.2
597.3
376.3
262.9
Special item with partial reserve character
155
For information about changes in equity capital resulting from the division and at-equity
consolidation, please refer to the statement of changes in shareholders’ equity.
Accounting and Valuation Principles (4)
WestLB AG’s accounting principles, valuation principles and reporting procedures are
applicable to the entire Group. In accordance with the legal requirements, the financial
accounts of the individual companies (affiliated companies and jointly managed
companies) included in the Group annual accounts are prepared in accordance with
WestLB’s standard accounting and valuation methods.
Assets, liabilities and open positions are valued in accordance with §§ 252 et seq. and
§§ 340 et seq. of the German Commercial Code (HGB).
Claims are reported at their outstanding principal balances less any unamortised discounts.
Liabilities are carried at their repayment amounts, with any related discounts reported
under deferred items. Premiums on claims and liabilities are reported under deferred
items as an asset or liability respectively. The proportionate amount of interest on a
claim or liability at year-end is included with the claim or liability to which it applies.
Deferred items resulting from own bonds issued and the lending business are valued
according to the proportionate interest method.
Bills of exchange, as well as treasury bills and non-interest-bearing treasury bonds,
are discounted and shown with the effective discount rate. Non-interest-bearing loans
to employees are reported at their outstanding principal balance in accordance with tax
regulations. Zero-coupon bonds are carried as liabilities at their issue price plus interest
accrued as of the balance sheet date.
Discernible risks in the lending business were adequately covered by individual value
adjustments and provisions. A global provision was formed in accordance with tax
valuation methods for latent risks from claims and contingent liabilities.
Securities held in the liquidity reserve are valued strictly at the lower of cost or market
value.
Securities held in the investment portfolio (financial assets) are valued at cost. Any
difference between the cost and the repayment amount is recognised on a pro rata basis
in income. To the extent that securities held in the investment portfolio are carried at
values higher than their current market value, these securities are shown separately
in the Notes as valued as fixed assets. This information is subject to change over time
because of portfolio changes, as well as movements in interest rates and/or market
value.
156
Shares, bonds, derivatives and other trading instruments held by the WestLB Group for
proprietary trading purposes are reported at their individual market values as of the
balance sheet date.
They are carried either at market value or their fair value as at December 30, 2002 (last
trading day for liquid markets); pro rata interest, non-recurring payments, and option
premiums are taken into account. The individual results of valuation are combined into
Group-wide macro portfolios. Euro country currencies are combined into one item. The
portfolios are broken down into risk categories (interest rates, shares and other price
risks) and, within these risk categories, into currencies, classes of shares and other
basic instruments. Positive and negative valuation results are netted within the macro
portfolios; if there are any positive valuation results, i. e. unrealised gains, remaining,
these unrealised gains are netted against realised losses. Any unrealised gains remaining
after that are not recognised as income; any remaining unrealised losses are written
down and provisions are established. The current results from the trading portfolio
(interest income, dividends), as well as refinancing costs, were reported as part of the
interest result in the income statement. To the extent they result from trading transactions,
price gains and losses, as well as payments obtained and received under forward
contracts and other derivative instruments, as well as options, are included in the net
income from trading operations. The dividend income from certain equity trading
portfolios is also included in the net income from trading operations.
Equity investments in affiliated companies and non-affiliated companies are carried at
cost; where a loss of value is expected to be permanent, they are written down to the
lower fair value.
Tangible assets with a limited useful life are depreciated in accordance with the
applicable tax regulations, with the exception of aircraft listed under leased assets,
which are depreciated over a 20-year period. Low-value assets are written off in full
in their year of purchase.
Adequate provisions have been made for contingent liabilities and pending losses; a
provision for anniversary expenses is being established in the amount permitted under
tax law. The provision for pensions was established on the basis of actuarial principles
in accordance with § 6 (a) of the German Income Tax Act (EStG).
The special item with partial reserve character formed in fiscal year 1999 in accordance
with § 273 of the German Commercial Code (HGB) to comply with the revaluation
requirement stipulated in the 1999/2000/2002 Tax Relief Act was released in line with
legal provisions.
There is a fund for general bank risks pursuant to § 340 (g) and reserves pursuant to
§ 340 (f) of the German Commercial Code (HGB).
157
Foreign currency amounts have been translated in accordance with § 340 (h) of the
German Commercial Code (HGB) and BFA 3/1995. Assets and liabilities denominated in
foreign currencies, as well as open spot deals, are translated using the reference rates
of the European Central Bank on December 30, 2002. Open forward contracts (forward
exchange transactions, foreign currency options and foreign currency futures) are
carried at the mean forward rate or option premium effective on that day (last trading
day for the liquid market). Swap premiums on hedged balance sheet items are deferred
and amortised over time. The amortisation amounts are included in the interest result.
Each of the items on WestLB Group’s balance sheet, as well as each open position,
which is denominated in a foreign currency has been covered by an item that is also
denominated in that currency within the meaning of § 340 (h) (2) Sentence 2 of the
German Commercial Code (HGB). Therefore, in accordance with § 340 (h) (2) Sentences 1
and 2 of the German Commercial Code (HGB), all expenses and income generated from
the translation of foreign currency are captured in the income statement. There is no
income that has to be reported separately since the foreign exchange positions open
as of the balance sheet date were short-term. The negative result from the valuation
of individual open positions has been netted and reported under other liabilities.
Forward Transactions/Derivatives (5)
As part of their business operations the companies of the WestLB Group enter into
forward contracts and derivatives whose value is based on interest rates, foreign exchange
rates and other forward contracts or derivatives. The specific types of forward contracts
and derivatives that the WestLB Group enters into are as follows:
Forward transactions/derivatives based on interest rates
Interest-rate swaps, interest-rate futures, forward rate agreements (FRAs), interestrate options (bought and written), issued interest-rate warrants, interest-rate caps,
interest-rate floors, interest-rate collars and swaptions
Forward transactions/derivatives based on foreign exchange rates
Forward exchange transactions, currency options (bought and written), forward
exchange contracts, issued currency warrants, currency swaps and interest-currency
swaps
Forward transactions/derivatives based on share and other price risks
Stock forwards, stock options (bought and written), index forwards, index options
(bought and written), issued stock warrants and issued index warrants, precious
metal/commodity forwards, swaps, futures and options
Credit derivatives (bought and written)
Credit default swaps, total return swaps and credit linked notes
158
DERIVATIVES – GROUP VOLUMES
€ millions
Nominal Values
Credit Risk Equivalents
Replacement Costs
WestLB
WestLB WestLB GZ
WestLB
WestLB WestLB GZ
WestLB
WestLB WestLB GZ
Group
Group**
Group
Group
Group**
Group
Group
Group**
Group
Dec 31, 2002 Jan. 1, 2002 Dec. 31, 2001 Dec 31, 2002 Jan. 1, 2002 Dec. 31, 2001 Dec 31, 2002 Jan. 1, 2002 Dec. 31, 2001
Interest-rate risks
Interest-rate swaps
1,151,600
998,134
1,074,023
10,857
6,403
6,778
30,973
17,578
18,397
198,165
109,828
118,810
27
16
21
124
73
85
35,884
39,306
42,906
39,933
43,543
40,962
438
–
340
–
349
–
1,522
–
1,028
–
1,040
–
Stock market contracts
355,679
304,995
306,122
–
–
–
–
–
–
Caps, floors
118,970
121,224
122,702
361
319
323
1,107
975
986
42,822
88,300
90,131
59
944
945
101
1,798
1,799
1,942,426
1,705,320
1,796,293
11,742
8,022
8,416
33,827
21,452
22,307
Forward exchange
transactions
115,237
172,092
189,983
1,138
1,437
1,531
3,251
3,553
3,775
Interest-currency
swaps/currency swaps
114,899
107,243
111,385
2,700
3,091
3,208
3,066
3,449
3,722
10,873
11,137
20,922
19,314
22,999
21,535
132
–
187
–
196
–
349
–
467
–
480
–
1,260
1,640
1,640
–
–
–
–
–
–
Other currency forward
transactions
377
2,031
2,031
3
75
75
1
64
64
253,783
323,242
349,573
3,973
4,790
5,010
6,667
7,533
8,041
Stock forward
transactions
10
–
–
–
–
–
–
–
–
Stock options
– bought
– written
2,758
2,565
1,246
1,127
1,261
1,134
175
–
61
–
62
–
534
–
94
–
95
–
6,809
3,918
3,919
–
–
–
–
–
–
Other forward
transactions
FRAs
Interest-rate options,
swaptions
– bought
– written
Other interest-rate
forward transactions
Total interest rate
risks
Currency risks
Currency options
– bought
– written
Total currency risks
Share and other
price risks
3,745
2,986
3,671
129
134
154
87
139
171
Total share and other
price risks
15,887
9,277
9,985
304
195
216
621
233
266
Credit derivatives
– bought
– written
20,420
25,741
11,178
17,915
11,178
17,915
341
–
54
–
54
–
395
–
55
–
55
–
Total credit
derivative risks
Total derivatives
Netting effects
Total derivatives
after netting
46,161
29,093
29,093
341
54
54
395
55
55
2,258,257
2,066,932
2,184,944
16,360
13,061
13,696
41,510
29,273
30,669
–
–
–
8,806
5,883
5,876
–
–
–
2,258,257
2,066,932
2,184,944
7,554
7,178
7,820
41,510
29,273
30,669
* Excluding Banque d’Orsay S. A.
** After division and at-equity consolidation of Landesbank Rheinland-Pfalz and Landesbank Schleswig-Holstein
159
The total volume of WestLB Group’s forward transactions and derivatives business
was € 2,258.3 billion (2001: € 2,184.9 billion) as of the balance sheet date. The emphasis
continues to be on interest-rate risks, whose share of the total volume increased to
approx. 86.0% (2001: 82.2%).
Volume increased due to the originally internal (after the division of WestLB AG external)
derivatives with Landesbank NRW (primarily interest-rate swaps with a nominal value
of € 9.8 billion); however, it decreased due to the omission of the derivatives business
of the Landesbank Rheinland-Pfalz and Landesbank Schleswig-Holstein Groups. Since
these groups are no longer pro rata consolidated, but instead valued at-equity, their
derivatives business is no longer included in that of the WestLB AG Group.
The credit risk equivalents and replacement costs are calculated on the basis of the
market valuation method in accordance with German banking regulatory requirements.
The market value is calculated only for those contracts for which the replacement
transaction necessary to regain the previous position in the event of a counterparty
default would result in additional expenditure or lower income; profits and losses
generated by replacement transactions are not netted. In line with the above-mentioned
banking regulatory requirements, the counterparty weighting, add-on for derivatives
and close-out netting effects are taken into account when calculating the credit risk
equivalents.
WestLB Group’s credit risk equivalents pursuant to § 10 and § 10 a of the German
Banking Act (KWG) represent 11.8% (2001: 8.4%) of its total counterparty default risks
(weighted risk assets and relevant amount for the counterparty risk of the trading book).
Close-out netting is used to calculate the credit risk equivalents for banking regulatory
purposes. As a result, the average credit risk equivalents declined by approx. 53.8%
(2001: 42.9%).
In addition to the credit derivatives from the trading book listed in the table, there
were also credit derivatives in the investment book. The volume of credit derivatives
in the investment book where WestLB Group is the guarantee (buyer) amounted to
€ 1,629.0 million (2001: € 2,747.0 million) at December 31, 2002. Those where WestLB
Group is the guarantor (seller) amounted to € 2,012.0 million (2001: € 4,642.0 million)
and have been included in contingent liabilities.
In fiscal year 2002, the average annual value, in nominal terms, of WestLB Group’s
derivatives and other forward transactions was € 2,329.4 billion (2001: € 1,966.2 billion).
No adjustments were made to the average volumes to reflect division-related effects.
160
DERIVATIVES – AVERAGE GROUP VOLUMES
Jan. 1 – Dec. 31, 2002
€ millions
Nominal Values
Interest-rate risks
Currency risks
WestLB
Group
2002
WestLB GZ
Group
2001
1,965,943
1,582,101
306,624
348,690
WestLB
Group
2002
Replacement Costs
WestLB GZ
Group
2001
WestLB
Group
2002*
WestLB GZ
Group
2001*
9,360
7,197
26,302
19,248
4,372
5,159
7,128
8,842
Share and other price risks
16,360
10,754
330
259
607
337
Risks from credit derivatives
40,504
24,621
326
279
401
47
2,329,431
1,966,166
14,388
12,894
34,438
28,474
Total derivatives
WestLB Group enters into derivative transactions with top-rated counterparties, mainly
domestic and foreign OECD banks.
DERIVATIVES – CLASSIFICATION OF COUNTERPARTIES
€ millions
Nominal Values
Replacement Costs
WestLB
WestLB WestLB GZ
WestLB
WestLB WestLB GZ
WestLB
WestLB WestLB GZ
Group
Group**
Group
Group
Group**
Group
Group
Group**
Group
Dec 31, 2002 Jan. 1, 2002 Dec. 31, 2001 Dec 31, 2002 Jan. 1, 2002 Dec. 31, 2001 Dec 31, 2002 Jan. 1, 2002 Dec. 31, 2001
OECD banks
Non-OECD banks
Customers (incl. stock
market contracts)
Public-sector entities
Total
1,472,680
1,329,484
1,435,887
9,570
6,024
6,498
32,534
20,043
21,223
4,356
6,480
6,617
74
76
77
106
104
107
779,823
729,489
740,169
6,692
6,934
7, 092
8,769
9,025
9,229
1,398
1,479
2,271
24
27
29
101
102
110
2,258,257
2,066,932
2,184,944
16,360
13,061
13,696
41,510
29,274
30,669
** After division and at-equity consolidation of Landesbank Rheinland-Pfalz and Landesbank Schleswig-Holstein
Almost all of WestLB Group’s derivatives are trading transactions; customer transactions
are entered into by the trading units. Contracts for hedging the Bank’s own portfolios
are reflected in the trading portfolio by way of internal contracts. Most of the currency
and stock contracts are short-term. The interest-rate contracts are spread across the
entire spectrum of maturities, with some 21.0% (2001: 22.0%) having a residual
maturity of more than five years.
161
DERIVATIVES – CLASSIFICATION BY MATURITY
WESTLB GROUP DEC. 31, 2002
Nominal Values
€ millions
Interest-Rate
Risks
Currency Risks
Share and
Other Price Risks
Risks from
Credit Derivatives
– up to 3 months
629,851
94,341
7,335
8
– up to 1 year
312,286
54,044
5,796
0
– 1 to 5 years
588,504
72,650
2,578
1,715
Residual maturity
more than 5 years
411,785
32,748
178
44,438
1,942,426
253,783
15,887
46,161
Interest-Rate
Risks
Currency Risks
Share and
Other Price Risks
Risks from
Credit Derivatives
– up to 3 months
448,103
131,163
4,684
0
– up to 1 year
352,234
87,691
2,541
27
– 1 to 5 years
526,588
69,440
2,052
7,628
Total
WESTLB GROUP* JAN. 1, 2002
Nominal Values
€ millions
Residual maturity
more than 5 years
Total
378,397
34,946
0
21,438
1,705,322
323,240
9,277
29,093
* After division and at-equity consolidation of Landesbank Rheinland-Pfalz and Landesbank Schleswig-Holstein
WESTLB GZ GROUP DEC. 31, 2002
Nominal Values
€ millions
Interest-Rate
Risks
Currency Risks
Share and
Other Price Risks
Risks from
Credit Derivatives
– up to 3 months
473,294
146,580
4,793
0
– up to 1 year
372,830
95,189
2,592
27
Residual maturity
– 1 to 5 years
552,137
71,667
2,490
7,628
more than 5 years
398,032
36,137
110
21,438
1,796,293
349,573
9,985
29,093
Total
162
Claims on Banks (6)
WestLB Group
WestLB Group
after Division
Jan. 1, 2002
€ millions
Dec. 31, 2002
€ millions
Claims on
Affiliated Banks
Payable on demand
Claims on
Claims on
Other Banks Affiliated Banks
WestLB GZ Group
Dec. 31, 2001
€ millions
Claims on
Other Banks
Claims on
Affiliated Banks
Claims on
Other Banks
731.3
7,857.3
459.3
6,586.4
472.6
6,396.8
Breakdown by
residual maturity
– up to 3 months
1,014.2
42,183.7
853.3
46,688.6
1,519.9
44,575.1
– between 3 months
and 1 year
289.4
14,273.7
393.8
11,085.0
1,475.3
12,735.0
– between 1 and
5 years
250.8
7,505.8
300.0
14,201.1
8,433.5
21,505.7
– more than 5 years
Total
Book value
including:
– LBS loans
432.8
2,500.2
555.5
7,798.1
11,322.8
11,822.9
2,718.5
74,320.7
2,561.9
86,359.2
23,224.1
97,035.5
77,039.2
–
88,921.1
–
–
120,259.6
0.2
0.8
0.2
Claims on other banks include claims on affiliated companies in the amount of
€ 11,052.8 million and on banks in which equity investments are held in the amount
of € 455.9 million.
Claims from leasing transactions amount to € 443.8 million (2001: € 485.0 million).
163
Claims on Customers (7)
WestLB
Group
Dec. 31, 2002
€ millions
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
Dec. 31, 2001
€ millions
33,893.3
46,246.5
47,493.2
Breakdown by residual maturity
– up to 3 months
– between 3 months and 1 year
15,231.0
20,606.9
22,955.1
– between 1 and 5 years
21,612.9
29,543.3
39,656.2
18,025.2
31,275.0
49,694.8
Book value
88,762.4
127,671.7
159,799.3
2,079.5
N/A
3,025.0
202.0
N/A
325.9
– companies in which equity
investments are held
3,744.2
N/A
1,028.0
– from leasing transactions
including:
– claims with undetermined maturity
– non-consolidated affiliated companies
1,496.1
N/A
3,561.5
– loans of building and loan associations
0.0
1,270.8
6,990.2
– loans of the
Wohnungsbauförderungsanstalten
0.0
1,565.3
5,439.6
WestLB
Group
WestLB GZ
Group
Dec. 31, 2002
€ millions
WestLB
Group
after Division
Jan. 1, 2002
€ millions
Dec. 31, 2001
€ millions
221.1
721.0
831.2
Claims Secured by Mortgages (8)
Breakdown of claims on customers
by residual maturity
– up to 3 months
152.8
511.9
751.8
738.5
2,622.2
3,751.0
2,791.6
7,406.1
9,701.4
Book value
3,904.0
11,261.2
15,035.4
0.0
1,073.3
2,894.2
including:
– loans of building and loan associations
164
Bonds and Other Interest-Bearing Securities (9)
WestLB
Group
Dec. 31, 2002
€ millions
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
Dec. 31, 2001
€ millions
67,548.2
95,811.8
114,115.4
19,487.0
18,694.8
21,003.1
1,868.6
3,679.4
3,679.4
– bonds and notes of public-sector
issuers
30,819.8
38,264.3
45,527.0
– bonds and notes of other issuers
33,737.1
50,430.3
60,956.7
1,122.7
3,437.9
3,952.3
– listed on a stock exchange
54,843.5
79,676.9
97,869.4
– not listed on a stock exchange
12,704.7
16,134.9
16,246.0
36,097.9
36,258.8
36,258.7
Bonds and other interest-bearing securities
Book value
including:
amounts that will become due by
December 31 of the following fiscal year
Breakdown by product
– money market instruments
– notes issued by the Group
Breakdown by stock exchange listing
Breakdown by portfolio
– trading portfolio
– liquidity reserve
– investment portfolio
2,678.7
14,418.5
15,722.4
28,771.6
45,134.5
62,134.3
550.2
455.4
2,377.1
Breakdown by Group affiliation
– securities of companies in which
equity investments are held
Bonds and other interest-bearing securities include claims on affiliated companies in
the amount of € 841.3 million.
The € 28.8 billion (2001: € 62.1 billion) in bonds held in the investment portfolio is part
of fixed assets. At year-end, € 6.9 billion (2001: € 18.2 billion) of the WestLB Group’s
financial assets had been valued at the modified lower of cost or market value. Of that,
€ 2.2 billion (2001: € 4.7 billion) consisted of debt obligations acquired in connection
with interest-rate swaps (asset swaps), the commercial value of which equals the
purchase price entered on the books.
165
Shares and Other Non-Interest Bearing Securities (10)
The item includes shares in special funds totalling € 2,688.2 million (2001: € 3,536.9
million). The funds themselves consist mainly of listed securities and are included in the
investment portfolio. The € 2.9 billion (2001: € 2.8 billion) in the investment portfolio
is part of fixed assets. At December 31, 2002, € 181.3 million of the WestLB Group’s
financial assets had been valued at the modified lower of cost or market value.
WestLB
Group
Dec. 31, 2002
€ millions
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
Dec. 31, 2001
€ millions
4,836.2
5,589.9
5,826.1
– marketable securities
2,133.3
2,289.2
2,289.2
– non-marketable securities
2,702.9
3,300.7
3,536.9
Shares and other non-interest
bearing securities
Book value
Breakdown by marketability
Breakdown by stock exchange listing
1,898.5
1,749.0
1,749.0
2,937.7
3,840.9
4,077.1
1,068.3
963.0
963.0
818.7
1,842.7
2,043.4
2,949.2
2,784.2
2,819.7
Breakdown by portfolio
– trading portfolio
– liquidity reserve
– investment portfolio
166
Equity Investments in Non-Affiliated Companies and Associated
Companies (11)
WestLB
Group
Dec. 31, 2002
€ millions
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
Dec. 31, 2001
€ millions
Book value
6,249.8
4,393.7
4,508.2
including:
– banks
2,257.0
1,049.5
1,131.1
4,394.9
2,848.5
2,848.5
thereof
2,644.7
1,750.2
2,763.4
85.1
2,763.4
85.1
companies and associated companies
Breakdown by marketability/
stock exchange listing
The equity investments in non-affiliated companies held in accordance with § 285 No. 11
and § 313 (2) of the German Commercial Code (HGB) are itemised in a separate list that
has been deposited with the Local Court (Amtsgericht) in Düsseldorf. The exemptions
from disclosure provided under § 286 (3) No. 2 and § 313 (3) of the German Commercial
Code (HGB) were applied in four cases.
Equity Investments in Affiliated Companies (12)
WestLB
Group
Dec. 31, 2002
€ millions
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
Dec. 31, 2001
€ millions
Equity investments in affiliated companies
Book value
109.7
202.3
298.8
including:
– in banks
0.0
0.0
32.0
– in financial services institutions
0.6
0.5
0.5
109.1
201.8
266.3
16.1
17.4
49.3
16.1
17.4
49.3
– in other companies
Breakdown by marketability/
stock exchange listing
thereof
167
Trust Assets (13)
WestLB
Group
Dec. 31, 2002
€ millions
Claims on banks
Claims on customers
Bonds and notes
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
Dec. 31, 2001
€ millions
0.3
5.5
177.1
136.1
1,470.0
4,092.1
0.0
0.0
0.0
375.0
419.2
419.2
Equity investments
0.0
0.0
0.0
Other
0.0
0.0
0.0
511.4
1,894.7
4,688.4
Participations in RWI-Fonds
Book value
Other Assets (14)
The total figure of € 5,190.0 million (2001: € 7,886.9 million) chiefly consists of:
€ 1,506.2 million (2001: € 1,064.5 million)
in offsetting entries from the valuation of the trading portfolio (not including
currency transactions)
–.– (2001: € 2,651.5 million)
in offsetting entries from currency valuation
€ 1,787.7 million (2001: € 1,681.6 million)
in premiums for options
€ 798.3 million (2001: € 654.5 million)
in claims arising from tax refunds, the refunds themselves stemming almost
exclusively from corporate income tax and investment income tax withheld on
investment income and dividends
168
Fixed Assets (15)
€ millions
WestLB Group
Acquisition
Cost/Cost of
Production
Additions
Retirements
WestLB GZ Group
Total
Depreciation
Jan. 1, 2002
Bonds/shares and interestbearing securities forming
part of fixed assets
Equity investments in
affiliated companies
Equity investments in
non-affiliated companies,
associated companies
Intangible assets
Goodwill
47,055.4
Net Book
Value
Net Book Retirements
Value
Due to the
Division
WestLB
Group
Depreciation
in the
Financial Year
Dec. 31, 2002 Dec. 31, 2001
3,538.6 18,608.0
265.2
31,720.8
63,834.1
17,031.5
163.9
385.7
311.9
200.1
387.8
109.7
298.8
96.5
10.2
4,544.8
3,562.9
970.1
887.8
6,249.8
4,508.2
114.5
735.1
3.0
9.2
1.9
7.0
3.3
2.3
1.6
3.6
133.8
14.9
66.3
23.7
58.7
88.0
0.0
2.4
1,135.2
14.7
790.4
97.9
261.6
755.3
17.0
25.1
Office equipment
1,194.4
232.6
373.1
712.7
341.2
394.7
62.9
143.1
Leasing assets
2,278.5
837.0
502.6
403.1
2,209.8
1,944.7
0.0
152.8
29.0
0.6
9.4
7.1
13.1
19.2
0.1
3.9
Land and buildings
Other fixed assets
With regard to securities, the changes in the fiscal year are primarily due to changes
in the scope of consolidation involving the shares in Landesbank Rheinland-Pfalz and
Landesbank Schleswig-Holstein, which changed from pro rata consolidation to at-equity
consolidation, and the resulting categorisation of the Landesbanks as associated
companies. Further, besides additions and retirements there were changes resulting
from the dissolution, on a pro rata basis, of premiums and discounts.
Apart from the categorisation of the Landesbanks as associated companies, the additions
and retirements in equity investments in non-affiliated and associated companies were
due to restructuring of the equity investment portfolio.
Retirements of land and buildings in the amount of € 355.0 million were also a result
of the at-equity consolidation of the Landesbank shares; further, property with a market
value of € 140.1 million was transferred to a real estate company with no profit or
income tax consequences. Real property with a book value of € 149.1 million (2001:
€ 462.8 million) is utilised for the WestLB Group’s own business activities.
169
Additions to leasing assets pertain primarily to the increase in the Boullioun Group’s
aircraft fleet; retirements in the amount of € 315.0 million reflect changes in value
caused by price changes on the reporting date.
Own Shares (16)
WestLB Group did not hold any of its own shares at December 31, 2002.
Deferred Items (17)
Deferred items include the following:
WestLB
Group
Dec. 31, 2002
€ millions
Premiums on claims
Discounts from underwriting business
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
Dec. 31, 2001
€ millions
18.4
29.9
31.5
115.9
131.7
472.4
Discounts from liabilities
647.2
564.9
777.9
Other
556.3
849.2
2,895.4
1,337.8
1,575.7
4,177.2
WestLB
Group
WestLB GZ
Group
Dec. 31, 2002
€ millions
WestLB
Group
after Division
Jan. 1, 2002
€ millions
Dec. 31, 2001
€ millions
Claims on banks
235.6
353.5
353.5
Claims on customers
Book value
Subordinated Assets (18)
The following items include subordinated assets:
263.8
88.7
87.8
Bonds and other interest-bearing
securities
0.0
237.4
237.4
Shares and other non-interest-bearing
securities
0.0
12.1
12.1
companies
0.0
9.6
9.6
499.4
701.3
700.4
Total
170
Pledged Assets (19)
Of the assets shown, WestLB Group pledged € 50,478.2 million (2001: € 47,438.9 million)
under repurchase agreements.
Liabilities to Banks (20)
WestLB Group
WestLB Group
after Division
Jan. 1, 2002
€ millions
Dec. 31, 2002
€ millions
WestLB GZ Group
Dec. 31, 2001
€ millions
Liabilities to
Affiliated Banks
Liabilities to
Other Banks
Liabilities to
Affiliated Banks
Liabilities to
Other Banks
Liabilities to
Affiliated Banks
Liabilities to
Other Banks
4,000.6
10,911.6
4,386.0
10,500.3
4,388.5
9,259.4
5,854.8
70,339.5
4,324.6
75,578.5
4,324.7
75,896.3
– between 3 months
and 1 year
438.3
17,152.0
98.9
26,779.4
98.9
28,113.5
– between 1 and
5 years
261.9
6,326.1
219.3
9,537.9
222.2
15,603.0
164.3
3,384.1
257.8
7,801.9
262.7
20,252.9
0.0
0.0
0.0
7.7
17.6
7.7
10,719.9
108,113.3
9,286.6
130,205.7
9,314.6
149,132.8
Payable on demand
Breakdown by
residual maturity:
– up to 3 months
Deposits of building
and loan associations
Total
Book value
118,833.2
139,492.3
158,447.4
Liabilities to banks include liabilities to affiliated companies in the amount of
€ 5,009.9 million and liabilities to companies in which equity investments are held
in the amount of € 970.9 million.
171
Liabilities to Customers (21)
WestLB
Group
Savings deposits and deposits of
building and loan associations
Dec. 31, 2002
€ millions
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
Dec. 31, 2001
€ millions
33.0
1,029.9
7,186.5
including:
savings deposits with agreed
periods of notice of
– up to 3 months
0.0
1.0
1.0
0.0
3.0
3.0
0.0
2.0
2.0
0.0
0.3
0.3
Deposits of building and loan associations
0.0
949.2
7,105.7
63,727.6
15,733.0
87,693.6
26,803.3
98,770.5
26,982.5
including:
payable on demand
with residual maturities of
– up to 3 months
30,383.3
34,845.5
35,322.7
7,143.5
6,090.8
6,509.9
3,926.3
7,260.1
10,873.3
6,541.5
12,694.0
19,082.1
Book value
172
63,760.6
88,723.5
105,957.0
including:
– liabilities to non-consolidated affiliated
companies
74.3
N/A
150.8
– liabilities to companies in which equity
investments are held
4,255.0
N/A
1,802.0
Certificated Liabilities (22)
WestLB
Group
Bonds issued
including:
– amounts becoming due before
December 31 of the following fiscal year
Dec. 31, 2002
€ millions
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
Dec. 31, 2001
€ millions
14,403.7
37,519.6
83,023.2
2,142.4
7,737.7
17,080.5
43,744.5
45,747.1
45,747.1
– up to 3 months
24,861.9
26,792.0
26,792.0
18,348.5
18,353.2
18,353.2
105.9
199.1
199.1
Other certificated liabilities
including those with residual maturities of
Book value
including:
– certificated liabilities to non-consolidated
affiliated companies
– certificated liabilities to companies in
which equity investments are held
428.3
402.8
402.8
58,148.2
83,266.7
128,770.3
0.0
N/A
0.0
127.2
N/A
934.1
WestLB
Group
WestLB GZ
Group
Dec. 31, 2002
€ millions
WestLB
Group
after Division
Jan. 1, 2002
€ millions
Dec. 31, 2001
€ millions
83.8
86.2
271.2
52.6
1,389.3
3,034.0
375.0
419.2
419.2
Trust Liabilities (23)
RWI certificates
Other liabilities
Book value
0.0
0.0
964.0
511.4
1,894.7
4,688.4
173
Other Liabilities (24)
The main components of this item, which is € 8,575.4 million (2001: € 8,846.2 million), are:
€ 4,102.7 million (2001: € 4.272.1 million)
in securities delivery obligations
€ 283.0 million (2001: –.–)
in offsetting items from the valuation of currency transactions
€ 2,284.1 million (2001: € 1,890.3 million)
in premiums from options
€ 301.4 million (2001: € 423.8 million)
in interest payments for profit participation rights and subordinated liabilities
Deferred Items (25)
WestLB
Group
Dec. 31, 2002
€ millions
Premiums from own bonds issued
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
Dec. 31, 2001
€ millions
22.3
15.8
74.9
Other
527.4
1,184.1
1,392.0
Book value
549.7
1,199.9
1,466.9
Special Item with Partial Reserve Character (26)
This item was formed in fiscal year 1999 because WestLB Group had to comply with
the revaluation requirement on participations, loans and securities under the 1999/
2000/2002 Tax Relief Act. Pursuant to § 273 of the German Commercial Code (HGB), in
conjunction with § 6 (1) and § 52 (16) of the German Income Tax Act (EStG), four-fifths
of the written-up amounts were transferred to the special item with partial reserve
character.
174
WestLB
Group
Balance on January 1
Allocations
Division-related deductions
Dec. 31, 2002
€ millions
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
Dec. 31, 2001
€ millions
48.4
57.5
58.4
4.0
–
42.6
–
– 9.1
–
Releases
– 27.1
–
– 22.2
Consolidation
– 21.3
–
– 21.3
4.0
48.4
57.5
Book value
Provisions (27)
Provisions include those for deferred taxes in the amount of € 12.2 million (2001:
€ 45.3 million). Total provisions amount to € 2,357.8 million (2001: € 3,905.9 million);
€ 1,976.9 million (2001: € 2,861.3 million) is attributed to WestLB AG. Additionally,
the Group formed a provision in the amount of € 126.9 million for anticipated losses
resulting from the final consolidation of WPS Bank in 2003.
Subordinated Liabilities (28)
WestLB
Group
Dec. 31, 2002
€ millions
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
Dec. 31, 2001
€ millions
Book value
5,067.0
6,580.1
6,829.6
including:
– due within 2 years
1,083.3
1,162.3
1,162.3
There are no subordinated liabilities to affiliated companies and to companies in which
equity investments are held.
Of the subordinated liabilities of € 5,067.0 million (2001: € 6,829.6 million), the junior
bond of US$ 750.0 million (due 2009; interest rate 6.05%) issued by WestLB AG’s New
York Branch exceeds 10% of the total value of all subordinated liabilities. There is no
early repayment obligation. There is no existing or planned agreement to convert these
funds into capital or another form of debt.
175
Of the total subordinated liabilities, € 1,083.3 million have a residual maturity of less
than two years. The original maturities range between 5 and 40 years.
The Bank incurred interest expense of € 450.4 million (2001: € 579.1 million) for
subordinated liabilities in 2002.
Subordinated liabilities carried by WestLB AG or its subsidiaries comply with the
requirements of § 10 (5 a) of the German Banking Act (KWG); the right to terminate
the liabilities without notice has not been reserved.
Capital and Reserves (29)
At December 31, 2002, the subscribed capital of WestLB AG was € 950.5 million. It is
divided into 9,505,000 no-par-value shares, each with a theoretical par value of € 100.00.
As the sole founder of WestLB AG, Landesbank NRW subscribed to all of WestLB AG’s
capital. Contributions to this capital have been paid in full using the assets of the former
Westdeutsche Landesbank Girozentrale – Anstalt des öffentlichen Rechts. In the course
of creating Landesbank NRW and Landesbausparkasse as separate legal entities,
€ 500.0 million of subscribed capital and € 225.0 million from retained earnings were
transferred. At the same time, the special reserves pertaining to the Wohnungsbauförderungsanstalt were transferred to Landesbank NRW; WestLB AG received € 2,000.0
million in cash capital, € 266.7 million of which represents subscribed capital and
€ 1,733.3 million of which was placed in capital reserves.
The Managing Board was authorised by a resolution of the shareholders’ meeting on
December 11, 2002 to increase the capital by a maximum of € 166.7 million by issuing
new shares.
WestLB Group has reserves totalling € 4,043.8 million (2001: € 7,605.5 million);
€ 610.0 million was taken out of retained earnings to cover WestLB AG’s net loss for
the year. An additional € 1,120.4 million was released from Group reserves to cover the
consolidated net loss for the year. Group reserves were reduced further in the course
of the transitional consolidation of the Landesbank Schleswig-Holstein and Landesbank
Rheinland-Pfalz Groups. This reduction was strictly technical in nature, and is not a
reflection of any decrease in the value of the WestLB Group or any shortcoming of the
Group.
The fund for general bank risks stands at € 261.9 million. The decrease is chiefly
attributable to the division of WestLB GZ (€ 221.0 million) and the at-equity
consolidation of Landesbank Schleswig-Holstein and Landesbank Rheinland-Pfalz
(together € 113.4 million).
176
The drop in subordinated liabilities and profit participation capital can also be attributed
in large measure to the division of WestLB GZ (€ 499.6 million) and the at-equity
consolidation of Landesbank Schleswig-Holstein and Landesbank Rheinland-Pfalz
(together € 1,779.1 million).
In addition, exchange rate fluctuations had a negative impact on WestLB AG’s capital
and reserves, decreasing the total by € 371.0 million (as compared to an increase of
€ 71.6 million in 2001).
The changes in the Group’s profit participation capital were as follows in the year
under review:
WestLB GZ
Division-Related
Group
Reductions
Dec. 31, 2001
Jan. 1, 2002
€ millions
€ millions
3,421.3
– 250
Reductions from
Transitional Consolidations
Jan. 1, 2002
€ millions
WestLB
Group
Jan. 1, 2002
€ millions
Additions
Other
Changes
€ millions
€ millions
WestLB
Group
Dec. 31, 2002
€ millions
– 635.1
2,536.2
–
– 1.0
2,535.2
The following table depicts the breakdown of the profit participation capital by maturity
(nominal, before deduction of disagio):
Maturity
2003
€ millions
12.1
2004
0.0
2005
92.0
2006
232.1
2007
495.4
2008
225.6
2009
621.6
2010
316.9
2011 – 2020
Total
539.5
2,535.2
Profit participation capital (bearer and registered rights) earned interest of € 173.4 million
in the year under review.
Of the total € 2,535.2 million in profit participation capital reported on the balance
sheet, € 2,521.1 million thereof counts toward liable equity capital under § 10 (5) of the
German Banking Act (KWG). Profit participation rights share in losses in accordance
with their terms and conditions. The claims of profit participation right holders for
repayment of their capital are subordinate to the claims of other creditors.
177
Liability for Pre-Existing Commitments – Grandfathering (30)
Article 1 § 11 of the Act on Redefining the Legal Status of Public-Law Banking
Institutions in North Rhine-Westphalia (Gesetz zur Neuregelung der Rechtsverhältnisse
der öffentlich-rechtlichen Kreditinstitute in Nordrhein-Westfalen) stipulates that the
public-law liability mechanisms of institutional liability and guarantor liability will
continue to apply to WestLB AG. This provision is consistent with the agreement
reached between Germany and the European Commission on July 18, 2001.
Specifically, this means that
all liabilities incurred by July 18, 2001 are fully covered by institutional and
guarantor liability until the time they mature, and
institutional and guarantor liability will remain in effect in their present form for
all liabilities incurred from July 19, 2001 to July 18, 2005, so long as the liabilities
mature by December 31, 2015.
The guarantors of the former Westdeutsche Landesbank Girozentrale will completely
satisfy the obligations arising from their guarantor liability with respect to WestLB AG,
as soon as they have properly determined and set forth in writing at the time a liability
matures that the creditor of such liability cannot be satisfied from the respective
institution’s assets. This explicitly includes the possibility of servicing debts precisely
at the same time they fall due. The giving of a notice as normally required under aid
law will not be necessary.
The following amounts represent those of the WestLB Group’s liabilities covered by
institutional and guarantor liability before consolidation.
BALANCE SHEET ITEM
€ millions
Maturity
incurred after July 19, 2001
Payable by Dec. 31, 2015
13,059.7
58,644.5
17,317.2
117,019.2
10,788.7
47,356.0
Other liabilities
178
Maturity
incurred prior to July 19, 2001
Payable at any time
22.1
8,315.2
8,093.2
49,502.9
456.0
Consolidation
27,892.9
Total
253,178.9
231,568.9
At December 31, 2002, the amount of liabilities covered by institutional and guarantor
liability after consolidation was € 253.2 billion. Allowing for a total of approx. € 11 billion
in equity (including the fund for general bank risks), deferred items, provisions, profit
participation capital and trust liabilities, this means that 95.3% of total liabilities are
covered by guarantor liability.
Deposit Insurance (31)
As the legal successor to Westdeutsche Landesbank Girozentrale, WestLB AG is a member
of the German Savings Banks and Giro Association (DSGV) and makes contributions to
the security reserves of the Landesbanks. These security reserves constitute protection
for contributing banks within the meaning of § 12 of the German Deposit Protection
and Investor Compensation Act (Einlagensicherungs- und Anlegerentschädigungsgesetz,
EAG) and are associated in local statutes with the deposit insurance scheme of the
savings banks.
The deposit insurance scheme of the German savings banks organisation consists of
twelve funds belonging to the regional savings banks and giro associations, the security
reserves of the Landesbanks and the security fund of the Landesbausparkassen, which
together form a community of joint liability. There are rules and regulations governing
the relationships between regional and national funds that provide for offsetting in
cases where coverage is claimed (so-called overflow agreements).
Commission Decision on Wfa Integration (32)
In 1992 the State of North Rhine-Westphalia transferred the assets of the Wohnungsbauförderungsanstalt (Wfa) to Westdeutsche Landesbank Girozentrale as part of a
contribution in kind, a move which brought Westdeutsche Landesbank Girozentrale
roughly € 2 billion in additional liable capital under § 10 a of the German Banking
Act (KWG).
In 1993 the private banks filed a complaint which challenged the remuneration for the
capital that was contributed. They alleged that it constituted impermissible aid. In 1997,
the European Commission initiated state aid proceedings.
In 1999 the state aid proceedings culminated in the Commission’s decision that,
because the remuneration for the Wfa capital was allegedly too low, Westdeutsche
Landesbank Girozentrale had received approximately € 800.0 million in state aid
between 1992 and 1999.
The German Federal Government, State of North Rhine-Westphalia and WestLB AG
each filed an appeal against the Commission’s decision with the European Court of
First Instance (proceedings for annulment).
Regardless of these appeals, WestLB AG was obligated to implement the Commission’s
decision.
179
The method of implementation which WestLB chose involved a non-cash settlement
based on WestLB’s increase in value, but the Commission did not accept this solution
and brought another action against WestLB with the European Court of Justice
(proceedings for failure to fulfil an obligation).
A judgement was handed down in the proceedings for failure to fulfil an obligation on
December 12, 2002. It was determined that the
implementation proposed by WestLB was not sufficient, but
non-cash solutions are, in principle, permissible.
Westdeutsche Landesbank Girozentrale transferred Wfa to Landesbank NRW on
August 1, 2002 as part of the division of WestLB GZ. The Commission expressly
accepted this solution with respect to the future. Therefore, the proceedings before
the European Courts apply exclusively to the past.
On March 6, 2003, the European Court of First Instance overturned the decision made
by the Commission on July 8, 1999. It was ruled that the Commission was to bear the
costs of the proceedings.
The consequences of this judgement are as follows:
The plaintiffs were completely successful with their petitions to the European Court.
Through the reversal, it is as if the Commission’s decision were never made.
As a result, the need to implement the decision also lapses. Accordingly, where
the judgement on the proceedings for failure to fulfil an obligation concerns
implementation of the Commission’s decision, that judgement has been rendered
invalid.
The Court overturned the Commission’s decision of 1999 because the Commission
failed to comply fully with its obligation under European law to substantiate the 12%
base rate of return and 1.5% risk premium it alleged should have been the basis of
the remuneration for the Wfa capital.
Since both of these parameters were of paramount importance to the economic
analysis underlying the Commission’s strategy, the Court was unable to make any
definitive judgement on the reasonableness of the Wfa remuneration.
The European Commission is expected to follow the standard procedure in such cases
and issue a new decision, since its original decision was overturned. This new decision
will take into account the deliberations of the European Court of First Instance.
180
Banking Act Ratios and Recommendations of the Basle Committee
on Banking Supervision Regarding Capital and Reserves (33)
WestLB Group and the companies belonging to the WestLB Group adhered at all times
to the ratios relating to own funds and liquidity as defined in §§ 10, 10 (a) and 11 of
the German Banking Act (KWG). The recommendations on capital and reserves of the
Basle Committee on Banking Supervision were complied with on the basis of national
regulations.
Foreign Currency Assets/Foreign Currency Liabilities (34)
At year-end, WestLB Group had foreign currency assets valued at € 103.1 billion (2001:
€ 154.2 billion) and foreign currency liabilities valued at € 106.4 billion (2001:
€ 164.5 billion).
Other Commitments (35)
The amounts shown for irrevocable credit commitments involve credit lines which have
not yet been utilised. Total irrevocable credit commitments fell € 24,163.4 million to
€ 78,199.9 million.
The volume of € 78.2 billion shown on the balance sheet stems from current domestic
and international lendings, as well as liquidity facilities in connection with asset backed
transactions.
Disposal Restrictions/Security Provisions (36)
As part of the European Central Bank’s peak refinancing facility for open-market
repo transactions with the Bundesbank, WestLB Group has deposited or assigned
€ 14,575.0 million (2001: € 21,586.4 million) of its own bonds and securities, as well as
those of affiliated companies, as collateral. Accounts receivable totalling € 926.9 million
(2001: € 965.0 million) were assigned to secure loans made as part of public credit
programmes. In some cases, the Group’s business activities abroad were subject to
legal requirements and local practices that required the provision of collateral to public
institutions and banks. Compliance with such requirements tied up € 4,909.1 million
(2001: € 5,829.4 million) in assets.
181
Contingent Liabilities (37)
WestLB Group’s liability to make additional contributions to the Liquiditätskonsortialbank
of which it is a member stood at € 65.3 million (2001: € 87.8 million). In 2002, the Group
was responsible for making additional contributions of € 5.9 million to the security
reserves of the Landesbanks/Girozentralen. The Group may incur additional obligations
with respect to its joint liability for the additional contributions to the Liquiditätskonsortialbank from partners who are members of the German Savings Banks and Giro
Association.
At year-end 2002, WestLB AG reported € 9.9 million in indirect pension obligations,
an amount which exceeded the cash assets of WestLB GmbH’s benefit fund and would
have had to be offset by funds from WestLB AG.
Letter of Comfort (38)
WestLB AG will, except in the case of political risk, ensure that – proportionate with
its investment quota – the banks, financial institutions and management companies in
which it holds a significant investment will be in a position to meet their obligations.
Enterprises covered by this Letter of Comfort and the amount of WestLB’s investment
quotas in such enterprises are set forth in a table on Page 116 of the Notes to the
WestLB Group AG Annual Accounts.
The Letter of Comfort applies to WestLB Asset Management (Australia) Pty. Ltd.
irrespective of WestLB AG’s investment quota.
Guarantor Liability (39)
Together with its wholly owned subsidiary WestLB Beteiligungsholding GmbH, WestLB AG
is a guarantor, to the extent permitted by law, of Landesbank Rheinland-Pfalz, Mainz,
and Landesbank Schleswig-Holstein, Kiel, as well as a direct guarantor of Westdeutsche
ImmobilienBank, Mainz, and DekaBank Deutsche Girozentrale, Frankfurt/Main.
Corporate Governance Code (40)
In February 2002, the government commission appointed by the German Ministry of
Justice presented the German Corporate Governance Code. Following the government
commission’s example, the Managing Board and Supervisory Board of WestLB AG
resolved to implement their own rules of corporate governance as WestLB AG
commenced commercial operations in August 2002. As a non-listed company, WestLB AG
182
is assuming a voluntary obligation by adopting its own rules, which to a great extent
are based on the provisions of the German Corporate Governance Code that apply to
non-listed companies. WestLB AG has published these rules on its homepage.
WestLB AG’s Rules of Corporate Governance publicly document its commitment to
a responsible system of management and supervision that focuses on an ongoing
increase in its overall value. The rules target the relationship between WestLB AG and
its shareholders, the duties and responsibilities of the Managing Board and Supervisory
Board, as well as the Bank’s accounting principles and standards of transparency. The
Rules of Corporate Governance are meant to promote and increase the level of trust
that current and future customers, shareholders, employees and the public at large
have in WestLB AG, both in Germany and abroad. The Supervisory Board and the
Managing Board fully support these rules. They have also been incorporated into the
rules adopted by the Supervisory Board of WestLB AG for the conduct of its business.
Since there were only five months between the adoption of WestLB AG’s corporate
governance rules in August 2002 and the end of the year, not all of the changes
required by the Rules of Corporate Governance could be made. Due to these time
constraints, as well as the special circumstances surrounding each process involved
in establishing the new WestLB AG, deviations from the corporate governance rules
will not be discussed here.
Other Financial Obligations (41)
WestLB Group has rental and leasing obligations of € 123.4 million (2001: 186.4 million).
Its other financial obligations total € 13.8 million (2001: € 663.2 million).
Landesbank NRW and WestLB AG will be jointly and severally liable until the end of
2006 for all liabilities that were incurred before the division of WestLB GZ. WestLB
AG’s joint liability will also be covered by the liability for pre-existing commitments
assumed by the former guarantors of WestLB GZ.
The Group has no other financial obligations that are reportable under § 251 of the
German Commercial Code (HGB).
183
Risk Provisions (42)
ALLOWANCES FOR SPECIFIC RISKS AND GENERAL LOAN LOSS PROVISIONS
(EXCL. RESERVES PURSUANT TO § 340 f, § 340 g HGB; EXCL. GLOBAL PROVISION)
WestLB
Group
Dec. 31, 2002
€ millions
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
Dec. 31, 2001
€ millions
Beginning balance
3,004.7
2,587.7
2,720.3
Division-related deductions
– 146.4
–
–
Allocations
2,162.0
1,117.4
1,154.1
Write-backs
– 420.3
– 404.4
– 422.5
Depletions
– 339.7
– 509.7
– 515.5
Market value differences/Other changes
– 220.5
67.3
68.3
Ending balance
4,039.8
2,858.3
3,004.7
WestLB
Group
after Division
Jan. 1, 2002
€ millions
WestLB GZ
Group
WRITE-DOWNS AND ADJUSTMENTS PURSUANT
TO § 340 f (3) AND § 340 c (2) HGB
WestLB
Group
Dec. 31, 2002
€ millions
Dec. 31, 2001
€ millions
Result of provisions
– 1,916.0
– 751.1
– 774.3
Expenses from loans and securities:
– 2,010.9
– 987.0
– 1,010.2
thereof – loans
– 1,987.3
– 910.1
– 927.6
– 23.6
– 76.9
– 82.6
thereof – securities
Income from participations and securities:
thereof – participations
thereof – securities
94.9
235.9
235.9
210.0
146.3
146.3
– 115.1
89.6
89.6
Pursuant to § 340 f (3) of the German Commercial Code (HGB) the income and expenses
of the WestLB Group resulting from the evaluation of the lending business were
offset by write-ups and write-downs on securities held in the liquidity reserve; the net
result was a loss of € 2,010.9 million. Similarly, pursuant to § 340 c (2) of the German
Commercial Code (HGB), the expenses for participations, shares in affiliated companies,
as well as securities held in the investment portfolio, were offset by the income amounts
for these investments. The net gain was € 94.9 million.
184
Result of Leasing Activities (43)
The income from leasing activities includes regular leasing income, as well as capital
gains on the sale of leased property in the amount of € 2.5 million (2001: € 7.8 million).
The related expenses include depreciation of € 152.8 million (2001: € 116.8 million)
and refinancing expenses of € 37.2 million (2001: € 39.7 million).
Extraordinary Result (44)
The extraordinary expenses include, for the most part, the expenses for restructuring
measures, particularly in the area of personnel, as well as a contribution to the flood
relief campaign sponsored by the German Savings Banks and Giro Association
(Deutscher Sparkassen- und Giroverband, DSGV).
Most of the extraordinary income resulted from the sale of the private banking business.
Geographic Breakdown of Profit Components (45)
The principal components of profit shown in the WestLB Group’s statement of income
were obtained in the following markets in fiscal year 2002:
€ millions
Interest Income/
Current Income
Commission
Income
Net Income from
Trading Operations
Other Operating
Income
8,031.0
418.5
38.9
544.6
Rest of Europe
8,431.1
246.6
23.6
484.5
North America
3,343.9
244.7
66.3
318.2
South America
192.4
5.7
– 11.6
193.4
1,016.6
46.1
9.5
51.2
Germany
Asia/Australia
The geographic breakdown of income was determined on the basis of the domicile of the
subsidiary or branch on whose account the transaction is carried or which was responsible
for the transaction. Amounts shown are gross and taken before consolidation. This table
includes the profit/loss that was derived from transactions between the regional units, but
eliminated in the statement of income.
185
Number of Employees (46)
The average number of employees in 2002 was as follows:
Male
Female
Domestic Group companies
3,278
Foreign Group companies
2,369
Group companies consolidated
on a pro rata basis
Total
Total
2002
After Division
and Transitional
Consolidation
Total
2001
2,472
5,750
6,311
8,701
1,518
3,887
3,927
3,927
144
129
273
268
2,046
5,791
4,119
9,910
10,506
14,674
Of the total Group employees, 231 were engaged in apprenticeship training or
equivalent training at year-end.
Remuneration of the Governing Bodies (47)
The total remuneration paid to WestLB AG’s Managing Board in 2002 was € 6.7 million
(2001: € 7.6 million); pensions paid to former members of the Managing Board or their
survivors amounted to € 3.9 million (2001: € 3.2 million). Remuneration paid to the
members of the Supervisory Board amounted to € 0.5 million (2001: € 0.5 million),
while that paid to the Guarantors’ Meeting amounted to € 0.1 million (2001: € 0.1 million)
and that paid to the members of the Advisory Boards was € 0.5 million (2001: € 0.4
million).
There are pension provisions in the amount € 36.2 million (2001: € 30.7 million) for
former members of WestLB AG’s Managing Board and their survivors.
Loans to Members of the Governing Bodies (48)
The members of the Managing Board of WestLB AG received advances and loans
totalling € 0.6 million (2001: € 3.6 million). The members of the Supervisory Board
of WestLB AG received advances and loans totalling € 0.4 million.
In 2002 members of the Supervisory Board of WestLB Girozentrale received advances
and loans totalling € 1.1 million, while members of the Guarantors’ Meeting received
advances and loans totalling € 0.2 million and members of the Advisory Boards of
WestLB Girozentrale received advances and loans totalling € 0.6 million.
186
Shareholdings in WestLB AG (49)
Landesbank NRW holds 100% of the subscribed capital of WestLB AG. WestLB AG
was given notice hereof in accordance with § 20 (1) and (4) of the German Stock
Corporation Act (AktG).
Group Shareholdings (50)
Excluding jointly managed companies, companies of the WestLB Group hold more than
5% of the voting rights in the following major corporations:
AKA Ausfuhrkredit-Gesellschaft mbH, Frankfurt/Main
AXA Investment Managers Deutschland GmbH, Cologne
Babcock Borsig Aktiengesellschaft, Oberhausen
Coperion Holding GmbH, Constance
Corac Group plc, Uxbridge, Great Britain
Deutsche Anlagen-Leasing GmbH, Mainz
European Sovereign Investments Limited Partnership
Girindus AG, Bergisch Gladbach
Global Trade Finance Priv. Ltd., Mumbai, India
Metro Capital B.V., Venlo-Blerick
Nordex AG, Norderstedt
RW Holding AG, Düsseldorf
Technotrans AG, Sassenburg
The Wireless Group plc, London, Great Britain
TUI AG, Berlin and Hanover
WestInvest Gesellschaft für Investmentfonds mbH, Düsseldorf
Companies of the WestLB Group are general partners of the following companies:
Darnley Estates Unlimited, Dublin
GLB GmbH & Co. OHG, Frankfurt/Main
Grundstücksgesellschaft am Fürstenwall (GbR), Düsseldorf
Société Civile Immobilière Franco-Allemande (SCIFA), Paris
Seats Held by Members of the Managing Board and
Group Employees (51)
Members of WestLB AG’s Managing Board and Group employees (excluding jointly
managed companies) are members or chairmen of the following companies’ supervisory
boards or other supervisory bodies. Offices marked with an asterisk indicate voluntary
disclosures that fall outside of the reporting requirements regarding seats on the
boards of major corporations pursuant to § 340 (a) (4) No. 1, in conjunction with
§ 267 (3), of the German Commercial Code (HGB).
187
Seats Held by Members of the Managing Board
Jürgen Sengera
AXA Konzern AG
DekaBank Deutsche Girozentrale*
Deutsche Post AG
DHL Worldwide Express B.V.* (until December 2, 2002)
Ford Deutschland Holding GmbH
Ford-Werke AG
INTERSEROH AG (until June 27, 2002)
Landesbank Rheinland-Pfalz Girozentrale*
Landesbank Schleswig-Holstein Girozentrale*
Rockwool International A/S*
Westdeutsche ImmobilienBank*
Dr. Adolf Franke
Bank Austria AG*
rhenag Rheinische Energie AG
RWE Gas AG
Ernst Gerlach (from April 27 to July 31, 2002)
Georgsmarienhütte GmbH
Mannesmann Röhrenwerke AG
Hans Henning Offen (until August 31, 2002)
Gildemeister AG
Kaufhof Warenhaus AG
RWE Plus AG
ThyssenKrupp Materials AG
Trienekens AG (until July 29, 2002)
TUI AG
WestIntell AG*
188
Dr. Wolf-Albrecht Prautzsch (until July 31, 2002)
Gerry Weber International AG
Hamburgische Landesbank Girozentrale*
Investitionsbank des Landes Brandenburg* (until August 1, 2002)
Provinzial Holding Westfalen* (until September 30, 2002)
Provinzial Leben Holding Westfalen* (until September 30, 2002)
RAG Immobilien AG
Rethmann Beteiligungs AG
RWE Power AG
TA Triumph-Adler AG
Viterra AG
Westdeutsche ImmobilienBank* (until July 31, 2002)
Westfälische Provinzial Feuerversicherung AG (until September 30, 2002)
Westfälische Provinzial Lebensversicherung AG (until September 30, 2002)
Westfalen AG
Dr. Manfred Puffer
Österreichische Bundesfinanzierungsagentur Ges.m.b.H*
Dr. Johannes Ringel
Babcock Borsig AG
Howaldtswerke-Deutsche Werft AG (until August 5, 2002)
Hüttenwerke Krupp Mannesmann GmbH
Investitionsbank des Landes Brandenburg*
Klöckner & Co. AG
Nordex AG
Phoenix AG
Rütgers AG
STEAG AG
ThyssenKrupp Stahl AG
WestUBG – Westdeutsche Unternehmensbeteiligungs-AG*
189
Gerhard Roggemann
AXA Lebensversicherung AG
Banca del Gottardo* (until November 27, 2002)
Börse Düsseldorf AG*
Deutsche Börse AG
Fresenius AG
Hapag-Lloyd AG
Solvay Deutschland GmbH
Veba Oel AG (until February 7, 2002)
VHV Autoversicherungs-AG
West Pensionsfonds AG*
West Pensionskasse AG*
Andreas Seibert
INTERSEROH AG
MDK Holdings Ltd.* (until July 17, 2002)
Preussag Energie GmbH
Singapore Aircraft Leasing Enterprise Ltd.*
Robert Restani
Landesbank Rheinland-Pfalz*
Seats Held by Group Employees
The following employees are members or chairmen of the following companies’
supervisory boards:
Bernd Bennemann
Metro Capital B.V.
Philip Buscombe
Coperion Holding GmbH
Chestnutbay Limited
Southern Cross Healthcare Holdings Limited
Stephen Davidson
ENIC plc
Jeremy Hand
Chestnutbay Limited
Southern Cross Healthcare Holdings Limited
190
Tom Kaiser
Deka International (Ireland)
Dr. Jörg Lauer
Wolfgang Richter
LBS Landesbausparkasse Bremen AG
Franz Ruf
DekaBank Deutsche Girozentrale Luxembourg S. A.
Rainer Schmitz
Deka Investment GmbH
Jürgen Schneider
JT International Germany GmbH
Jürgen Stinner
W. Jacobsen
Volker Undorf
Shamrock Resources Inc.
Joachim Voss
Technotrans AG
Manfred Wern
TCI Training & Consulting International AG
Dr. Alexander Winkels
Klöckner & Co. AG, Duisburg
Madaus AG
Schmitz-Cargobull AG
Schuh-Union AG, Zweibrücken (until September 30, 2002)
191
Governing Bodies of WestLB AG (52)
In calendar year 2002 the governing bodies of WestLB AG included those of
Westdeutsche Landesbank Girozentrale, for the period up to July 31, 2002 and
August 30, 2002 respectively, as well as those of WestLB AG, from August 1, 2002.
Supervisory Board (until August 30, 2002)
Ernst Schwanhold, Chairman
Minister, Ministry of Economics and Small and Medium-Sized Businesses,
Energy and Transport of North Rhine-Westphalia
Peer Steinbrück, MdL, Deputy Chairman
Minister, Ministry of Finance of North Rhine-Westphalia
Udo Molsberger, Deputy Chairman
Regional Director, Regional Association of the Rhineland
Wolfgang Schäfer, Deputy Chairman
Regional Director, Regional Association of Westphalia-Lippe
Dr. Karlheinz Bentele, Deputy Chairman
President, Savings Banks and Giro Association of the Rhineland
Dr. Rolf Gerlach, Deputy Chairman
President, Savings Banks and Giro Association of Westphalia-Lippe
Walter Haas
Chairman, DGB Regional District NRW
Heinz Kettler
HEINZ KETTLER Metallwarenfabrik GmbH & Co.
Dr. Hermann Krämer
Former member of the Managing Board of VEBA AG
Dr. Helmut Linssen, MdL
First Vice President of the State Assembly of North Rhine-Westphalia
Edgar Moron, MdL
Chairman of the SPD Parliamentary Group of North Rhine-Westphalia
Friedrich Späth
Former Chairman of the Managing Board of Ruhrgas AG
192
Paul Heidrich
Chairman of the CDU Group, Regional Assembly of the Rhineland
Dr. Berthold Tillmann
Lord Mayor, City of Münster
Hans-Peter Krämer
Chairman of the Managing Board, Kreissparkasse Köln
Dieter Pützhofen
Lord Mayor, City of Krefeld
Rolf Brunswig (until June 30, 2002)
Chairman of the Managing Board, Sparkasse Siegen
Dr. Norbert Emmerich (from July 1, 2002 to August 30, 2002)
Chairman of the Managing Board, Sparkasse Münsterland Ost
Hans Pixa
District Administrator, Coesfeld District
Fred Eicke
Director, WestLB Düsseldorf
Hannelore Heger-Golletz
Bank officer, WestLB Münster
Gerd-Uwe Löschmann
Associate Director, WestLB Düsseldorf
Manfred Matthewes
Bank officer, WestLB Düsseldorf
Manfred Schimpf
Hubertus Schreiber
Elisabeth Weber
Bank officer, WestLB Düsseldorf
193
Franz-Georg Schröermeyer
Secretary, Financial Services
ver.di Vereinte Dienstleistungsgewerkschaft, Münster Regional Office
Christiane Stascheit
Deputy Director
ver.di Vereinte Dienstleistungsgewerkschaft, Düsseldorf Regional Office
Dr. Harald Noack
Under Secretary, Ministry of Finance of North Rhine-Westphalia
Dieter Krell
Assistant Secretary
Director of the Central Department of the Ministry of Economics and Small and
Medium-Sized Businesses, Energy and Transport of North Rhine-Westphalia
Karl Bechtel
Regional Councillor
Regional Association of the Rhineland
Dr. Hans-Ulrich Predeick
Regional Councillor
Regional Association of Westphalia-Lippe
Heinz Biesenbach
Association Director, Savings Banks and Giro Association of the Rhineland
Dr. Klaus Wienberg
Association Director, Savings Banks and Giro Association of Westphalia-Lippe
Guarantors’ Meeting of WestLB Girozentrale (until August 31, 2002)
Georg Wilhelm Adamowitsch, Moderator
Under Secretary
Head of the State Chancellery of North Rhine-Westphalia
Dr. Günter Berg
Assistant Secretary
Ministry of Finance of North Rhine-Westphalia
Dr. Thomas Griese
Under Secretary, Ministry of the Environment and Nature Conservation, Agriculture
and Consumer Protection of North Rhine-Westphalia
194
Jörg Hennerkes
Under Secretary, Ministry of Economics and Small and Medium-Sized Businesses,
Energy and Transport of North Rhine-Westphalia
Bernd Kiesow
Senior Principal
Ministry of Finance of North Rhine-Westphalia
Manfred Morgenstern
Under Secretary, Ministry of Urban Development and Housing,
Culture and Sport of North Rhine-Westphalia
Cornelia Prüfer-Storcks
Under Secretary, Ministry of Women, Youth, Family and
Health of North Rhine-Westphalia
Johannes Winkel
Assistant Secretary, Ministry of the Interior of North Rhine-Westphalia
Winfried Schittges, MdL, Moderator
Chairman, Regional Assembly of the Rhineland
Harry Voigtsberger
Chairman of the SPD Group, Regional Assembly of the Rhineland
Dr. Wolfgang Kirsch, Moderator
District Administrator
Chairman of the CDU Group, Regional Assembly of Westphalia-Lippe
Dieter Gebhard
Chairman of the SPD Group, Regional Assembly of Westphalia-Lippe
Dr. Hans-Christian Vollert, Moderator
District Administrator, Viersen District Administration
Michael Kranz
Chairman of the Managing Board, Sparkasse Bonn
Paul-Gerhard Schmitz
Mayor, City of Gummersbach
Franz-Josef Leikop, Moderator
District Administrator, Hochsauerland District
Dr. Norbert Emmerich (until June 30, 2002)
Chairman of the Managing Board, Sparkasse Münsterland Ost
195
Josef Strauß (from July 1, 2002 to July 31, 2002)
Chairman of the Managing Board, Sparkasse Wittgenstein
Eckhard Schwerhoff
Mayor, City of Gladbeck
Guarantors’ Meeting of WestLB Girozentrale (from August 1, 2002 to August 30, 2002)
Dr. Bernd Lüthje
Chairman of the Managing Board, Landesbank NRW
Ernst Gerlach
Member of the Managing Board, Landesbank NRW
Dr. Ulrich Schröder
Member of the Managing Board, Landesbank NRW
Managing Board of WestLB GZ (until August 30, 2002)
Jürgen Sengera (Chairman)
Hans Henning Offen (Deputy Chairman)
Dr. Wolf-Albrecht Prautzsch (Deputy Chairman until July 31, 2002)
Dr. Adolf Franke
Ernst Gerlach (from April 27, 2002 to July 31, 2002)
Dr. Bernd Lüthje (from April 27, 2002 to July 31, 2002)
Dr. Manfred Puffer
Dr. Johannes Ringel
Gerhard Roggemann
Dr. Ulrich Schröder (from April 27, 2002 to July 31, 2002)
Andreas Seibert
Managing Board of WestLB AG (from August 1, 2002)
Jürgen Sengera (Chairman)
Dr. Adolf Franke
Klaus-Michael Geiger (from January 1, 2003)
Dr. Manfred Puffer
Robert Restani (deputy member from December 1, 2002)
Dr. Johannes Ringel
Gerhard Roggemann
Andreas Seibert
196
Members of the Supervisory Board of WestLB AG (from August 1, 2002)
Dr. Bernd Lüthje, Chairman
Chairman of the Managing Board, Landesbank NRW
Gerd-Uwe Löschmann, Deputy Chairman (from September 3, 2002)
Associate Director, WestLB AG, Düsseldorf
Dr. Erich Bauer
Chief Executive Manager, TMD Friction Holding GmbH
Jean-Pascal Beaufret
Chief Financial Officer, Alcatel
Dr. Karlheinz Bentele
President, Savings Banks and Giro Association of the Rhineland
Thorsten Ellwanger (from September 3, 2002)
Associate Director, WestLB AG, Hamburg
Bernd Fiegler (from September 3, 2002)
Deputy State Director
ver.di Vereinte Dienstleistungsgewerkschaft, Regional District of
North Rhine-Westphalia
Dr. Rolf Gerlach (from September 2, 2002)
President, Savings Banks and Giro Association of Westphalia-Lippe
Horst-Wolfgang Klophaus (from September 3, 2002)
Manager, WestLB AG, Düsseldorf
Hans-Peter Krämer
Chairman of the Managing Board, Kreissparkasse Köln
Dr. Siegfried Luther
Deputy Chairman of the Managing Board, Bertelsmann AG
Manfred Matthewes (from September 3, 2002)
Bank officer, WestLB AG, Düsseldorf
Hartmut Mehdorn
Chairman of the Managing Board, Deutsche Bahn AG
Udo Molsberger
Regional Director, Regional Association of the Rhineland
197
Dr. Hans-Ulrich Predeick
Regional Councillor, Regional Association of Westphalia-Lippe
Henning Richerzhagen (from August 1, 2002 to September 2, 2002)
Legal Advisor
Savings Banks and Giro Association of Westphalia-Lippe
Heinz-Günter Sander (from September 3, 2002)
Rainer Schmitz (from September 3, 2002)
Bank Director, WestLB AG, Düsseldorf
Franz-Georg Schröermeyer (from September 3, 2002)
Secretary, Financial Services
ver.di Vereinte Dienstleistungsgewerkschaft, Münster Regional Office
Christiane Stascheit (from September 3, 2002)
Deputy Director
ver.di Vereinte Dienstleistungsgewerkschaft, Düsseldorf Regional Office
Elisabeth Weber (from September 3, 2002)
Düsseldorf/Münster, April 15, 2003/May 8, 2003*
WestLB AG
The Managing Board
Sengera
Restani
Dr. Franke
Dr. Ringel
Geiger
Dr. Puffer
Roggemann
Seibert
* The amendments of May 8, 2003 take into account additional risk provisions made for
a lending commitment and the related changes.
198
Auditor’s Opinion
We have audited the amended Group annual accounts and the amended Group statement
of financial condition prepared by WestLB AG, Düsseldorf/Münster, for the financial year
ending December 31, 2002. The preparation of the Group annual accounts and the Group
statement of financial condition according to German commercial law regulations and the
supplementary provisions contained in the articles and bylaws are the responsibility
of the legal representatives of the Bank. It is our task to give an opinion on the Group
annual accounts and the Group statement of financial condition on the basis of our audit.
We carried out our audit in accordance with § 317 of the German Commercial Code
(HGB) while complying with the German principles of proper auditing laid down by the
Institute of German Certified Public Accountants (IDW – Institut der Wirtschaftsprüfer).
According to these principles, the audit must be planned and carried out in a way
which ensures that errors and infringements which have a material impact on the
presentation of the Group’s net assets, financial condition and earnings in the Group
annual accounts and the Group statement of financial condition can be identified as not
being in accordance with generally accepted accounting principles. When defining the
audit processes, knowledge of the business activities and economic and legal environment
of the Group as well as the expectations regarding possible errors are taken into account.
In the context of the audit, the effectiveness of the internal control system and evidence
of the correctness of the information contained in the Group annual accounts and the
Group statement of financial condition are for the most part assessed on the basis of
samples. The audit covers an assessment of the annual accounts of the companies
included in the Group annual accounts, the scope of consolidation, the accounting
and consolidation principles applied and the relevant estimates made by the legal
representatives as well as an opinion on the overall presentation of the Group annual
accounts and the Group statement of financial condition. We are of the opinion that
our audit forms a sufficiently reliable basis for our assessment.
Our audit resulted in no objections.
In our opinion, the amended Group annual accounts, while complying with standard
accounting principles, present a true and fair view of the net assets, financial condition
and earnings of WestLB AG Düsseldorf/Münster. The amended Group statement of
financial condition adequately reflects the Group’s situation and the risks inherent in its
future development.
Düsseldorf, April 16, 2003 /May 9, 2003
PwC Deutsche Revision
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
(Kütter)
German Public Accountant
(Dr. Dicken)
German Public Accountant
199
Recent Developments and Outlook
The weak economy, increasing incidence of bankruptcies and falling stock prices had a major impact on the
financial performance of banks in 2002. At the same time, the German banking market is marked by growing
consolidation and cost pressure. This is the environment in which WestLB AG will complete its renewed focus on
profitability as it looks ahead to the elimination of institutional and guarantor liability in mid-2005. The guiding
principle of the measures which the Group successfully pressed ahead with in 2002 remain the goals of an 18 per
cent. return on shareholders’ equity, a cost-income ratio of 65 per cent. and a core capital ratio of 6.5 per cent.
In 2003 the WestLB Group will move ahead with the restructuring measures introduced in the year under review.
In addition to reducing its cost basis, this will include the further development of the Bank’s strategic orientation
in order to improve structural profitability. The Group will continue to concentrate on its core competencies in
profitable, high-growth businesses, including special finance, equity investments, capital market products and
the equities business. Activities which are outside of the Group’s strategic focus will be discontinued.
As a first step, WestLB divested itself of its retail operations in the year under review by selling its private banking
business and its shares in Westfälische Provinzial-Versicherung. As of 1st January, 2003, WestLB also sold WPSBank to the two savings banks associations. These measures further enhanced the Bank’s image as a focused
wholesale bank.
The acquisition of the remaining shares of Westdeutsche ImmobilienBank (WIB) also marks a step in this direction; the owners agreed on the move at the beginning of March. One of the objectives in controlling 100 per cent.
of WIB’s shares is to restructure the WestLB Group’s entire real estate business and incorporate it into WIB, which
focuses on wholesale business.
As planned, the domestic private banking business was sold to a private bank as of 1st April, 2002. As part of its
strategic repositioning, WestLB had decided to withdraw from the private banking business altogether. The securities account business for other private clients was closed as of 31st December, 2002, and account management
will end on 30th June, 2003.
In order to strengthen its market position in core businesses, WestLB has dovetailed various business units with
its special finance business. The Global Structured Finance business unit and the Asset Backed Securities unit
have been grouped together in a new business unit entitled Global Specialised Finance. GSF also houses the
commodity finance and forfaiting businesses. Credit derivatives operations were transferred to the Global Financial Markets business unit. Moreover, it was decided to concentrate the principal finance business in a separate
business unit. Overall, these changes are designed to improve clients’ access to products and to create additional
synergies.
The founding of Dublin-based WestLB Covered Bond Bank was in response to the rapid growth experienced on
the European market for secured bonds. The Covered Bond Bank will function as a centre of expertise for government financing, including savings bank refinancing. Irish covered bonds offer investors and issuers an attractive
alternative to German mortgage bonds (Pfandbriefe). The new bank’s first issue is expected to take place within
the first six months of 2003.
The equities business suffered for the second year in a row from the overall weakness of the markets. After
reducing the cost basis both here and in the other capital markets business in the year under review, further
measures proved necessary because of the persistently poor conditions. In this connection, the Bank has decided
to market its core equities business and all M&A services under the WestLB brand and to concentrate the activities
of its subsidiary Panmure U.K. on securing a competitive position in the UK market.
The conclusion of a framework agreement with the savings banks in North Rhine-Westphalia placed WestLB’s
cooperation with the savings banks on a new footing. Working together with the savings banks, WestLB will
further develop its role as the central institution for the savings banks. Select areas in which to strengthen collaboration have already been identified.
200
On the cost front, WestLB Group reached an important milestone by reducing costs approx. 20 per cent. in the
year under review. The systematic management of costs is proving successful. By year-end 2003, the goal of
reducing the number of staff by 1,500 will be achieved; 596 jobs were already eliminated in 2002. In addition to
the project currently under way to improve the cost-saving potential in the IT area, the Bank has set up a project
for limiting other operating expenses. Additional significant cost savings are to be achieved by the end of the year.
Given the continued weakness of the market, cost-saving measures also affected as already mentioned the equities and investment banking business of WestLB Panmure. The goal of reducing the cost base by 16 per cent. was
met and exceeded in 2002. However, because the market remains weak, it will be necessary to take additional
measures in 2003.
Due to the weak state of the economy and the corporate scandals, the WestLB Group incurred extraordinary risks
in 2002. Despite the possibility that the uncertainty plaguing the world economy will persist, it appears likely that
the worst is over in terms of risks. The Bank has introduced further measures for limiting risk and also made
substantial headway in improving the instruments used in its active risk and portfolio management. For example,
it improved its risk profile by developing and implementing a consistent credit risk strategy as well as creating a
system of active portfolio management to control cluster risks and capital allocation. In addition, the lending
business will focus even more on cross-selling opportunities.
After making substantial progress in the year under review in reducing its cost basis and making risk-based
adjustments in its loan and equity investment portfolios, the Group can expect its results to improve in 2003, its
second year of restructuring, if there is a revival in the world economy. The structural measures taken as part of
the Group’s efforts to refocus will also contribute to an improvement in results. However, if the economic situation
remains unfavourable and there are critical developments in certain industries and countries, as the crisis in Iraq
could trigger, it is not unlikely that the lending and equity investments business will be hard-hit. Therefore, it is
impossible to quantify the results for 2003 reliably. On the whole, the foundation is in place for the Bank to
achieve its goals by the end of the transitional period for the liability mechanisms in 2005.
Effective 6th May, 2003, WestLB AG took over a majority holding in Duisburg steel distributor Klöckner & Co. AG
from Klöckner Holdings GmbH which is part of the London Balli group. As a result, WestLB AG now holds a
total of 94.9 per cent. of the shares of the company. The other shareholder is Hamburgische Landesbank
– Girozentrale –. The two banks, acting as financial investors, will support a further successful development of
Klöckner & Co. AG.
At the end of April 2003, additional loss risks from a foreign leasing company exposure required additional risk
provisioning which was subsequently included in WestLB AG’s individual and Group accounts, increasing the net
loss after tax for 2002 shown by WestLB AG and the WestLB Group to ¤ 610m and ¤ 1,730m, respectively. The
risks currently resulting from this exposure are thus already provided for in the annual accounts for 2002.
The discharge of the Managing Board and the Supervisory Board regarding the Financial Year 2002 is expected to
be granted in a special Shareholders’ Meeting in the near future.
By 31st March, 2003, WestLB AG (Bank Group) had generated a pro-rata net income for the year of about ¤ 186m,
which is ahead of its budget for the first quarter.
Also for the remainder of 2003, the general economic environment is expected to remain difficult, however, so
that it would be inappropriate to extrapolate this interim result to the year as a whole.
201
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202
– The Issuer –
Establishment and Domicile
The Issuer was incorporated as a Netherlands Antilles limited liability company (naamloze vennootschap) on 8th
December, 1988 under the laws of the Netherlands Antilles for an unlimited period of time and is a wholly-owned
subsidiary of WestLB Finance Netherlands B.V., a Dutch private company with limited liability (besloten
vennootschap). The parent company is an indirectly wholly-owned subsidiary of the Guarantor. The Issuer’s
principal office is located at Berg Arrarat 1, Curaçao, Netherlands Antilles.
Purpose
The purpose of the Issuer is to finance the activities of the Guarantor and companies within the group, to obtain
the funds required by obtaining public and private loans, to invest in debt obligations of companies in the group,
and, in connection therewith and generally, to invest in securities, as well as to borrow and lend monies.
Share Capital
Until 31st December, 1998 the authorized share capital of the Issuer amounted to Dfl 500,000 divided into 500
ordinary shares of Dfl 1,000 par value each. WestLB Finance Netherlands B.V., owns all of the issued share capital
of the Issuer. As of 22nd December, 1999, the authorized capital was redenominated to Euro 230,000 divided into
500 shares of Euro 460 par value each. As of 31st December, 2002 and 2001 100 shares were issued and paid in.
Capitalisation
The following table shows the capitalisation and the shareholder’s equity of the Issuer as at 31st December, 2002:
Euro
Shareholder’s equity
Paid-in share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholder’s equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46,000
2,876,235
(2,876,235)
2,475,477
––––––––––––––
2,521,477
1,108,573,869
––––––––––––––
Long-term debt
Subordinated bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non subordinated bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total capitalisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,121,579,742
3,532,799,119
––––––––––––––
5,654,378,861
––––––––––––––
6,765,474,207
––––––––––––––
––––––––––––––
There has been no material change in the capitalisation of the Issuer since 31st December, 2002.
203
Management
The management of the Issuer is exercised by a Managing Board, consisting of two or more Managing Directors.
The Managing Directors are:
Karel Philip Römer, Curaçao
Mees Pierson Trust (Curaçao)
Lucie de Jong, Curaçao
Mees Pierson Trust (Curaçao) N.V.
Dr. Horst Füllenkemper
WestLB AG, London Branch
Nigel Brodie Denison
WestLB AG, London Branch
Johannes Ernst Günther Scheel
WestLB International S.A., Luxembourg
Franz Ruf, Luxembourg
WestLB International S.A., Luxembourg
Sean J. Dunne
WestLB Ireland plc., Dublin
Auditors
The auditors of the Issuer for the financial years ended 31st December, 2000 and 31st December, 2001 respectively were Arthur Andersen & Co., Accountants, Jupiterstraat 8, Curaçao, Netherlands Antilles. The auditors of
the Issuer for the financial year ended 31st December, 2002 were Ernst & Young, Zeelandia Office Park, Curaçao,
Netherlands Antilles.
The auditors have issued, in each case, an unqualified audit report.
General Meeting of Shareholders
The general meetings of shareholders are held in Curaçao. The annual general meeting of shareholders must be
held within nine months after the close of the Issuer’s financial year.
Financial Year
The financial year of the Issuer is the calendar year unless the general meeting of shareholders decides otherwise.
Distribution of Profits
The net profit of the Issuer may be allocated to reserves or paid out as dividends at the discretion of the general
meeting of shareholders in accordance with the Articles of Incorporation of the Issuer and Netherlands Antilles
Law. If and to the extent that profits of the Issuer permit so, the Managing Board may resolve to declare one or
more interim-dividends as an advance payment of expected dividends.
204
Auditors’ Report
Introduction
We have audited the financial statements of WestLB Finance Curaçao N.V., having its registered office in Curaçao,
Netherlands Antilles, for the year 2002. These financial statements are the responsibility of the company’s
management. Our responsibility is to express an opinion on these financial statements based on our audit.
Scope
We conducted our audit in accordance with auditing standards generally accepted in The Netherlands. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the company as
at December 31, 2002 and of the result for the year then ended in accordance with accounting principles generally
accepted in The Netherlands.
Curaçao, February 7, 2003
Ernst & Young
205
WestLB Finance
Balance Sheet as at
(Currency –
Assets
2002
––––
2001
––––
Long-term deposits with affiliated companies:
Subordinated bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non subordinated bonds . . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-term deposits with affiliated companies . . .
¤
2,121,579,742
3,532,799,119
–––––––––––––––––––
5,654,378,861
–––––––––––––––––––
¤
2,927,868,791
3,063,780,756
–––––––––––––––––––
5,991,649,547
–––––––––––––––––––
672,468,005
310,548,034
–––––––––––––––––––
983,016,039
–
202,858,285
–––––––––––––––––––
202,858,285
127,583,171
140,379,906
491,954
4,182
–––––––––––––––––––
1,111,095,346
–––––––––––––––––––
260,356
15,822
–––––––––––––––––––
343,514,369
–––––––––––––––––––
¤
6,765,474,207
–––––––––––––––––––
–––––––––––––––––––
¤
6,335,163,916
–––––––––––––––––––
–––––––––––––––––––
Current assets:
Deposits with affiliated companies due within one year –
Interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash –
Affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The accompanying notes to financial statements
206
Curaçao N.V.
December 31, 2002
Euro)
Liabilities and Shareholder’s Equity
2002
––––
2001
––––
Shareholder’s equity:
Paid-in share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholder’s equity . . . . . . . . . . . . . . . . . . . . . . . .
¤
46,000
2,876,235
(2,876,235)
2,475,477
–––––––––––––––––––
2,521,477
¤
46,000
3,284,496
(3,284,496)
2,876,235
–––––––––––––––––––
2,922,235
2,121,579,742
3,532,799,119
–––––––––––––––––––
5,654,378,861
–––––––––––––––––––
2,927,868,791
3,063,780,756
–––––––––––––––––––
5,991,649,547
–––––––––––––––––––
672,468,005
309,543,632
–––––––––––––––––––
982,011,637
–
201,267,926
–––––––––––––––––––
201,267,926
126,441,383
84,301
36,548
–––––––––––––––––––
1,108,573,869
–––––––––––––––––––
139,178,615
72,908
72,685
–––––––––––––––––––
340,592,134
–––––––––––––––––––
¤
6,765,474,207
–––––––––––––––––––
–––––––––––––––––––
¤
6,335,163,916
–––––––––––––––––––
–––––––––––––––––––
Long-term debt:
Total long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current liabilities:
Debt due within one year –
Interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and shareholder’s equity . . . . . . . . . . . .
are an integral part of these balance sheets.
207
Statement of Income for the Year ended December 31, 2002
(Currency – Euro)
2002
––––
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest spread . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¤
290,327,464
2001
––––
¤
362,538,994
(287,626,435)
–––––––––––––––––––
2,701,029
–––––––––––––––––––
(359,444,036)
–––––––––––––––––––
3,094,958
–––––––––––––––––––
89,644
26,679
14,111
56,052
–––––––––––––––––––
186,486
–––––––––––––––––––
2,514,543
106,393
35,305
28,619
–
–––––––––––––––––––
170,317
–––––––––––––––––––
2,924,641
(2,518)
–––––––––––––––––––
2,512,025
(8,628)
–––––––––––––––––––
2,916,013
(36,548)
–––––––––––––––––––
¤
2,475,477
–––––––––––––––––––
–––––––––––––––––––
(39,778)
–––––––––––––––––––
¤
2,876,235
–––––––––––––––––––
–––––––––––––––––––
Operating expenses:
Management fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Audit fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bond issuance expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
Total operating expenses . . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange loss . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income taxes . . . . . . . . . . . . . . . . . . .
Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . .
Net income for the year . . . . . . . . . . . . . . . . . . . . . . .
The accompanying notes to financial statements are an integral part of these statements.
208
Statement of Cash Flows for the Year ended December 31, 2002
(Currency – Euro)
2002
––––
2001
––––
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¤
2,475,477
–––––––––––––––––––
¤
2,876,235
–––––––––––––––––––
(Increase) decrease in deposits due within one year . . . .
Decrease in interest receivable . . . . . . . . . . . . . . . . . . . . .
Increase (decrease) in debt due within one year . . . . . . .
Decrease in interest payable . . . . . . . . . . . . . . . . . . . . . . .
Tax payments during the year . . . . . . . . . . . . . . . . . . . . . .
Increase (decrease) in current liabilities other than
loans and banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(780,157,754)
12,796,735
780,743,711
(12,737,232)
(73,786)
783,658,229
19,232,241
(783,767,311)
(19,002,544)
(46,918)
49,043
–––––––––––––––––––
620,717
–––––––––––––––––––
3,096,194
–––––––––––––––––––
(14,633)
–––––––––––––––––––
59,064
–––––––––––––––––––
2,935,299
–––––––––––––––––––
337,270,686
(337,270,688)
(2,876,235)
–––––––––––––––––––
(2,876,237)
–––––––––––––––––––
¤
219,957
–––––––––––––––––––
–––––––––––––––––––
(486,284,070)
486,284,070
(3,284,496)
–––––––––––––––––––
(3,284,496)
–––––––––––––––––––
¤
(349,197)
–––––––––––––––––––
–––––––––––––––––––
Cash flows from operating activitites:
Change in working capital . . . . . . . . . . . . . . . . . . . . . . . .
Net cash proceeds from operating activities . . . . . . . . .
Cash flows from financing activities
(Increase) decrease in long-term deposits . . . . . . . . . . . .
Increase (decrease) in long-term debt . . . . . . . . . . . . . . .
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash used in financing activities . . . . . . . . . . . . . . .
Net increase (decrease) in cash . . . . . . . . . . . . . . . . . . . .
The accompanying notes to financial statements are an integral part of these statements.
209
Notes to Financial Statements as at December 31, 2002
(Currency – Euro)
1. General
(a) Organization
WestLB Finance Curaçao N.V. (“the company“) was incorporated as a Netherlands Antilles corporation on December 8, 1988 and is a wholly owned subsidiary of WestLB Finance Netherlands B.V. (“the parent company“), a
Dutch corporation.
(b) Activities
The purpose of the company is to finance directly or indirectly the activities of WestLB AG (the ultimate parent
company) and its subsidiaries, to obtain the funds required by floating public loans and placing private loans, to
invest its equity and borrowed assets in the debt obligations of companies in the group, and, in connection
therewith and generally, to invest its assets in securities, as well as the borrowing and lending of moneys.
2. Summary of Significant Accounting Principles
(a) General
All assets and liabilities are stated at face value, unless indicated otherwise.
(b) Foreign currency translation
Assets and liabilities denominated in foreign currency are translated at year-end rates of exchange. As of December 31, 2002 and 2001 the exchange rates used for this purpose are:
¤
¤
¤
¤
¤
¤
¤
¤
¤
¤
¤
¤
¤
¤
¤
¤
¤
¤
¤
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2002
––––––––––––––––––
2001
––––––––––––––––––
CHF
1.45480
DEM
1.95583
DKK
7.42810
US$
1.04220
AUD
1.85150
CAD
1.63810
GBP
0.65000
JPY
124.27000
SKK
41.68800
ITL 1936.27000
LUF
40.33900
ZAR
8.97910
ECU
1.00000
PTE
200.48200
NZD
2.00100
GRD
340.75000
PLN
4.00050
FRF
6.55957
HUF
235.95000
CHF
1.48290
DEM
1.95583
DKK
7.43650
USD
0.88130
AUD
1.72800
CAD
1.40770
GBP
0.60850
JPY
115.33000
SKK
42.78000
ITL 1936.27000
LUF
40.33990
ZAR
10.43020
ECU
1.00000
PTE
200.48200
NZD
2.12150
GRD
340.75000
PLN
3.49530
FRF
6.55957
HUF
245.18000
Transactions in foreign currency during the year have been translated at the approximate rate prevailing at transaction date. The translation results are recorded in the statements of income.
210
(c) Recognition of income
Income and expenses are recorded in the period in which they are incurred.
3. Long-Term Deposits with Affiliated Companies and Long-Term Debt
Claims arising from the subordinated bonds with respect to their principal amounts are subordinated in the event
of liquidation and bankruptcy of the company to the claims of all other creditors of the company. The company has
placed subordinated deposits of equal term and amount to the related bonds with the ultimate parent company.
The ultimate parent company has given its irrevocable, unconditional and with respect to the principal amounts
due under the bonds subordinated guarantees for the payment of principal and interest and any other amounts
due.
Other long-term debt, represented by bearer bonds, is secured by unconditional and irrevocable guaranties of the
ultimate parent company. The company has placed deposits of equal term and amount to the related bonds with
the ultimate parent company or its branches. With respect to the debt guaranteed by the ultimate parent company, the deposits and interest thereon are pledged to the ultimate parent company. Generally, interest on the
deposits and the bearer bonds is receivable respectively payable annually or semi-annually in arrears.
If the bearer bonds are redeemed prior to maturity, the relating deposits become due and repayable as well.
In case the company is compelled by law to make any deductions or withholdings on the interest or principal
amount of the deposits or the bearer bonds, the company will reimburse such amounts to ensure the receipt
by the bondholders of the amounts as stated on the coupons and/or bearer bonds. If at any time the company or
the related deposit holder becomes obliged to deduct or withhold any amounts, the company is entitled to redeem
the bonds prior to maturity after a 30 day’s notice.
As of December 31, 2002 and 2001 excess funds of the company of respectively ¤ 1,004,401 and ¤ 1,590,359
were placed on short term time deposits with WestLB International Luxembourg S.A. These deposits have been
classified under deposits with affiliated companies due within one year.
4. Related Party Transactions
The parent company and its branches may reimburse the following expenses on behalf of the company, related to
bearer bonds issued:
(a) Commissions due to the bond subscribers and the bond lead manager for their services in connection with the
issuance of bonds.
(b) Expenses incurred in connection with the preparation and issuance of bonds, such as printing of the information memorandum, listing fee, legal expenses, stamp duties and advertisements.
(c) Commissions due to paying agencies and trustees.
Additionally, the parent company will reimburse the company for discounts as a result of bond issuance prices
below 100% and, vice versa, the company passes on premiums to the parent company as a result of bond
issuance prices in excess of 100%. Consequently, the accompanying financial statements do not reflect the
effects of debt discounts and premiums on bond issuance prices.
5. Share Capital
Until December 31, 1998 the authorized share capital of the company amounted to Dfl. 500,000 divided into 500
shares of Dfl. 1,000 par value each. As of December 22, 1999 the authorized capital was redenominated to
¤ 230,000 divided into 500 shares of ¤ 460 par value each. As of December 31, 2002 and 2001 100 shares were
issued and paid-in.
211
6. Accounts Payable
Accounts payable consits of the following:
2002
––––––––––––––––
Management fee payable . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Audit fee payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¤
59,217
25,084
––––––––––––––––
¤
84,301
––––––––––––––––
––––––––––––––––
2001
––––––––––––––––
¤
61,983
10,925
––––––––––––––––
¤
72,908
––––––––––––––––
––––––––––––––––
7. Income Taxes
The 2002 provision for income taxes as reflected in the accompanying statements of income have been computed
based on a tax ruling concluded with the tax authorities as follows:
(a) The company will be taxed in The Netherlands Antilles applying the tax rate
of 2.4% - 3% on its income from financing activities.
(b) Taxable income will be determined as follows:
–
–
–
–
–
1/
4 % interest spread on loans obtained from financial institutions up to
US$ 80,000,000 or the equivalent value.
1/ % interest spread on loans obtained from financial institutions between
8
US$ 80,000,000 and US$ 160,000,000 or the equivalent value.
16
32
1/ % interest spread on loans obtained from financial institutions in excess
64
of US$ 320,000,000 or the equivalent value.
The payments of tax expenses during the year can be specified as follows:
2002
––––––––––––––––
Payment fiscal 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payment fiscal 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payment fiscal 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¤
36,530
–
37,256
––––––––––––––––
¤
73,786
––––––––––––––––
––––––––––––––––
2001
––––––––––––––––
¤
–
42,775
4,143
––––––––––––––––
¤
46,918
––––––––––––––––
––––––––––––––––
The tax provision amounts to ¤ 36,548.
8. Management Agreement
The company has entered into a management agreement with Mrs. L. de Jong and Mr. K. Ph. Römer for general
office and management services. Mrs. de Jong and Mr. Römer serve as managing directors of the company. The
company has five managing directors, three of which are representatives of the ultimate parent company.
The management fee expenses can be specified as follows:
2002
––––––––––––––––
Managerial service fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Office service fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees in connection with bond issues . . . . . . . . . . . . . . . . . .
¤
9,950
2,780
76,914
––––––––––––––––
¤
89,644
––––––––––––––––
––––––––––––––––
2001
––––––––––––––––
¤
11,047
3,314
92,032
––––––––––––––––
¤
106,393
––––––––––––––––
––––––––––––––––
9. Appropriation of Net Income
The Articles of Incorporation provide that the net income for the year is subject to the disposition decided upon at
the Annual Shareholder’s Meeting. In case of an accumulated deficit, no dividends can be declared until such
deficit has been compensated with future net income.
212
– The Issuer –
Incorporation, Duration and Domicile
WestLB Finance Netherlands B.V. (the “Issuer”) was incorporated in The Netherlands as a private company with
limited liability (“besloten vennootschap met beperkte aansprakelijkheid”) for an indefinite period by a
deed executed on 9th December, 1988. It is a indirectly wholly-owned subsidiary of WestLB. The Issuer is
registered in The Trade Register of the Chamber of Commerce and Industry in ‘s-Hertogenbosch, under
No. 16068592. Its statutory seat is located in Amsterdam and its principal office is located at Pettelaarpark 120,
5216 PT ‘s-Hertogenbosch, The Netherlands.
Purpose
The purpose of the Issuer is to finance directly or indirectly the activities of the parent company (WestLB) and its
subsidiaries, to obtain the funds required by floating public loans and placing private loans, to invest its equity
and borrowed assets in the debt obligations of companies in the group, and, in connection therewith and generally, to invest its assets in securities, as well as the borrowing and lending of monies.
Share Capital
As at 31st December, 2002 the authorised share capital of WestLB Finance Netherlands B.V.consists of
Euro 230,000 divided into of 500 ordinary shares of ¤ 460 each of which 200 shares were issued and paid in.
WestLB indirectly owns 100 per cent of the issued share capital of the Issuer.
Capitalisation
The following table shows the capitalisation and the shareholder’s equity of the Issuer as at 31st December,
2002:
Shareholder’s equity
Issued and paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unappropriated net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholder’s equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt
Subordinated debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Zero-coupon bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholder’s equity and long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Euro
92,000
3,231,999
–––––––––––––
3,323,999
–––––––––––––
150,000,000
49,492,032
177,830,147
–––––––––––––
377,322,179
380,646,178
–––––––––––––
Save as disclosed herein, there has been no material change in the capitalisation of the Issuer since 31st December, 2002.
213
Management
The Management of the Issuer is commissioned to the Board of Managing Directors which consists of one or
more Managing Directors.
At present the Managing Directors of the Issuer are:
Marie Thérése Nicolle Rousseau-Bartholomeus, Amsterdam
Hendrikus Glotzbach, Muiderberg
Barthold Toering, Amsterdam
Address:
Pettelaarpark 120
5216 PT ‘s-Hertogenbosch
The Netherlands
Auditors
The auditors of the Issuer for the financial years ended 31st December, 2000 and 31st December, 2001, respectively, were Arthur Andersen & Co., Accountants, Oostmaaslaan 71, Rotterdam, The Netherlands. The auditors of
the Issuer for the financial year 2002 were Ernst & Young, Drentestraat 20, 1083 HK Amsterdam, The Netherlands.
The auditors have issued in each case an unqualified audit report.
General Meeting of Shareholders
The Annual General Meeting of shareholders of the Issuer shall be held not later than six months after the end of
the financial year in the municipality where the Issuer has its statutory seat (Amsterdam). In case the Annual
General Meeting is held in another location, valid resolutions can only be adopted if the entire issued share capital
is represented.
In the General Meeting of shareholders each share gives the right to one vote.
The tasks of the General Meeting of shareholders include the appointment of the Managing Directors, the
adoption of the financial statements and the distribution of the Issuer’s profits.
Financial Year
The financial year of the Issuer is the calendar year.
Results and Distribution of Profits
The Board of Managing Directors draws up the balance sheet and the profit and loss account. The profits are
at the disposal of the General Meeting of shareholders. Any profit distributions can be made only out of the excess
of the company’s net assets over its paid-in share capital plus the legal reserves.
214
Subsidiary
The Issuer owns 100 per cent. of the share capital of WestLB Finance Curaçao N.V., a Netherlands Antilles limited
liability company. The purpose of WestLB Finance Curaçao N.V. is to finance directly or indirectly the activities of
WestLB and the companies belonging to the group of WestLB, to obtain the funds required by floating public
loans and placing private loans, to invest its equity and borrowed assets in the debt obligations of one or more
companies of the group, and, in connection therewith and generally, to invest its assets in securities, including
shares and other certificates of participation and bonds, as well as other claims for interest-bearing debt however
denominated and in any and all forms, as well as the borrowing of monies and on-lending of monies to companies
belonging to the group.
215
WestLB Finance
Balance Sheet at
(Currency –
Assets
2002
––––
2001
––––
¤
45,378
––––––––––––––––
¤
45,378
––––––––––––––––––
150,000,000
49,606,035
177,830,147
––––––––––––––––
377,436,182
––––––––––––––––
286,134,065
49,606,034
180,960,499
––––––––––––––––––
516,700,598
––––––––––––––––––
25,144,521
1,125
45,000
9,187,473
1,125
––––––––––––––––
34,379,244
––––––––––––––––
411,860,804
––––––––––––––––
29,072,422
4,529
181,134
12,079,464
4,529
––––––––––––––––––
41,342,078
––––––––––––––––––
558,088,054
––––––––––––––––––
136,134,065
–
11,041,571
21,115
––––––––––––––––
147,196,751
––––––––––––––––
–
9,739
11,282,977
36,125
––––––––––––––––––
11,328,841
––––––––––––––––––
2,952,455
147,484
––––––––––––––––
3,099,939
––––––––––––––––
150,296,690
––––––––––––––––
¤
562,157,494
––––––––––––––––
––––––––––––––––
3,186,012
313,159
––––––––––––––––––
3,499,171
––––––––––––––––––
14,828,012
––––––––––––––––––
¤
572,916,066
––––––––––––––––––
––––––––––––––––––
Financial fixed assets:
Total fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term deposits:
Subordinated deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Zero coupon deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term deposits . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred charges:
Prepaid interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bond issuance expenses . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management and underwriting fees . . . . . . . . . . . . . . . . . .
Discounts on zero coupon bonds . . . . . . . . . . . . . . . . . . . . .
Premiums on other long-term deposits . . . . . . . . . . . . . . . .
Current assets:
Current portion of subordinated deposits . . . . . . . . . . . . . .
Receivable on shareholder . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash
Affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third party . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current assets
Total assets
216
Netherlands B.V.
December 31, 2002
Euros)
Shareholder’s Equity and Liabilities
2002
––––
2001
––––
Shareholder’s equity:
Issued and paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unappropriated net income for the year . . . . . . . . . . . . . . .
¤
92,000
–
3,231,999
––––––––––––––––
3,323,999
––––––––––––––––
¤
92,000
–
3,638,266
––––––––––––––––––
3,730,266
––––––––––––––––––
150,000,000
49,492,032
177,830,147
––––––––––––––––
377,322,179
––––––––––––––––
286,134,065
49,492,032
180,960,499
––––––––––––––––––
516,586,596
––––––––––––––––––
25,214,006
9,262,707
47,250
––––––––––––––––
34,523,963
––––––––––––––––
411,846,142
––––––––––––––––
29,142,636
12,174,853
190,191
––––––––––––––––––
41,507,680
––––––––––––––––––
561,824,542
––––––––––––––––––
136,134,065
10,788,128
65,160
––––––––––––––––
146,987,353
––––––––––––––––
–
11,024,683
66,841
––––––––––––––––––
11,091,524
––––––––––––––––––
¤
562,157,494
––––––––––––––––
––––––––––––––––
¤
572,916,066
––––––––––––––––––
––––––––––––––––––
Long-term debt:
Subordinated debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Zero coupon bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income:
Interest received in advance . . . . . . . . . . . . . . . . . . . . . . . .
Discounts on zero coupon deposits . . . . . . . . . . . . . . . . . . .
Premiums on other long-term debt . . . . . . . . . . . . . . . . . . .
Current liabilities:
Current portion of subordinated debt . . . . . . . . . . . . . . . . .
Interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity and liabilities
217
Statement of Income for the Year ended December 31, 2002
(Currency – Euros)
2002
––––
Interest income deposits . . . . . . . . . . . . . . . . . . . . . . . . . . .
¤
Other interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
–
––––––––––––––
30,851,626
10,808
––––––––––––––
32,326,235
30,191,250
––––––––––––––
660,375
31,631,747
––––––––––––––
694,488
(3,403)
(3,403)
142,941
2,876,235
––––––––––––––
3,012,370
––––––––––––––
(3,403)
(3,403)
142,941
3,284,496
––––––––––––––
3,420,631
––––––––––––––
(104,612)
(136,134)
––––––––––––––
(240,746)
––––––––––––––
3,431,999
(126,781)
(136,134)
––––––––––––––
(262,915)
––––––––––––––
3,852,204
(200,000)
––––––––––––––
¤
3,231,999
––––––––––––––
––––––––––––––
(213,938)
––––––––––––––
¤
3,638,266
––––––––––––––
––––––––––––––
Total interest income deposits . . . . . . . . . . . . . . . . . . . . . . .
Interest expense bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest spread . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of bond issuance expenses . . . . . . . . . . . . . .
Amortization of premiums on other long-term deposits . . .
Amortization of premiums on other long-term debts . . . . .
Dividends received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . . . . . .
Amortization of management and underwriting fees . . . . .
Total operating expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
218
30,851,626
2001
––––
¤
32,315,427
Cash Flow Statement for the Year ended December 31, 2002
The cash flow statement is derived from the statement of income and other changes between the opening and
closing balance sheets, eliminating the effect of currency translation differences. Movements in provisions for
assets have been included under the item provided for.
2002
––––
2001
––––
¤
3,231,999
–––––––––––––––
(135,882,920)
15,010
135,895,829
–––––––––––––––
27,919
–––––––––––––––
3,259,918
–––––––––––––––
¤
3,638,266
–––––––––––––––
376,244
159,499
(174,202)
–––––––––––––––
361,541
–––––––––––––––
3,999,807
–––––––––––––––
(139,264,417)
6,962,833
139,264,417
(6,983,717)
(3,638,266)
–––––––––––––––
(3,659,150)
–––––––––––––––
¤
(399,232)
–––––––––––––––
–––––––––––––––
(8,366,501)
6,511,787
8,366,501
(6,527,506)
(3,677,767)
–––––––––––––––
(3,693,486)
–––––––––––––––
¤
306,321
–––––––––––––––
–––––––––––––––
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease/increase in other receivables . . . . . . . . . . . . . . . .
Increase in income tax receivable . . . . . . . . . . . . . . . . . . . .
Increase/decrease current liabilities . . . . . . . . . . . . . . . . . .
Change in working capital . . . . . . . . . . . . . . . . . . . . . .
Net cash from operating activities . . . . . . . . . . . . . . . .
Cash flows from financing activities:
Decrease long-term deposits . . . . . . . . . . . . . . . . . . . . . . . .
Increase deferred charges . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease deferred income . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividend paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash used in financing activities . . . . . . . . . . . . . . . . . .
Net decrease/increase in cash . . . . . . . . . . . . . . . . . . . . . . . .
219
Notes to Financial Statements as of December 31, 2002
General
Organisation
WestLB Finance Netherlands B.V. (“the company“) was incorporated on December 9, 1988 as a wholly owned
subsidiary of WestLB AG (“the ultimate parent company“), a German corporation. In 1994, all shares of the
company have been sold to RWS Securities Services Gesellschaft für Wertpapiervermittlung GmbH, as subsidiary
of the ultimate parent company. The company has its legal seat in Amsterdam.
Financial information of the company and its subsidiary is included in the consolidated financial statements of the
ultimate parent company. These consolidated financial statements are filed with the Chamber of Commerce in ’sHertogenbosch.
Activities
The purpose of the company is to finance directly or indirectly the activities of the parent company and its
subsidiaries, to obtain the funds required by floating public loans and placing private loans, to invest its equity
and borrowed assets in the debt obligations of companies in the group, and in connection therewith and generally, to invest its assets in securities, as well as the borrowing and lending of money.
Management report
The management report is available for the public upon request at the company’s office.
Accounting principles
General
The accounting principles of the company are summarized below. These accounting principles have all been
applied consistently throughout the year and the preceding year.
Assets and liabilities are stated at face value unless indicated otherwise.
Assets and liabilities denominated in foreign currencies are translated into euros at the rates of exchange prevailing at yearend. Transactions in foreign currencies are translated at the rates of exchange prevailing at the date of
the transaction. In accordance with a currency exchange guarantee agreement, any resulting foreign exchange
gain or loss on receivables or liabilities will be paid to or received from the company’s subsidiary WestLB Finance
Curaçao N.V., Netherlands Antilles.
Financial fixed assets
The company acts as an intermediate holding company. Therefore the investment in subsidiary is stated at acquisition cost or, in case of a permanent impairment of the value of the subsidiary, at lower equity value as determined on the basis of the financial statements of the subsidiary.
220
Deferred interest and interest received in advance
These intems represent the amounts deferred (for bonds) or received in advance (for deposits) in consideration of
the difference between the market interest rate, at the moment of transaction and the discounted interest rate of
the bonds/deposits. The amounts are capitalized/deferred and amortized over the period of the related bonds/
deposits.
Bond issuance expenses
Bond issuance expenses are generally capitalized and amortized over the period of the related bonds.
Management and underwriting fees
Management and underwriting fees are capitalized and amortized over the period of the related bonds.
Discounts on zero coupon bonds
Discounts on zero coupon bonds represent the difference between the par value and the issuance price of zero
coupon bonds. The amounts are capitalized over the period of the related bonds.
Premiums and discounts on other long-term deposits
Premiums and discounts on other long-term deposits represent a reduction or increase in the market interest rate
to be received on the deposits. The amounts are deferred and amortized over the period of the related deposits.
Premiums on other long-term debt
Premiums on other long-term debt represent a reduction in the nominal interest rate to be paid on bonds.
The amounts are deferred and amortized over the period of the related bonds.
Recognition of income
Income and expenses recorded in the period in which they are incurred.
Financial Fixed Assets
The company wholly owns WestLB Finance Curaçao N.V., a Netherlands Antilles corporation, incorporated on
December 8, 1988. Key financial information as of December 31, 2002 of WestLB Finance Curaçao N.V. is as
follows (expressed in thousands of Euros):
Long-term deposits with affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shareholder’s equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¤
¤
¤
¤
¤
¤
5,654,379
5,654,379
2,521
290,327
287,626
2,475
Long-Term Deposits and Long-Term Debt
Claims arising from the subordinated bonds with respect to the principal amount of NLG 300,000,000
(¤ 136,134,065) are subordinated in the event of liquidation and bankruptcy of the company to the claims
of all other creditors of the company. The company has placed a subordinated deposit of equal term and amount
to the related bonds with the ultimate parent company. The ultimate parent company has given its irrevocable,
unconditional with respect to the principal amount due under the bonds, subordinated guarantee for the payment
of principal and interest and any other amounts due. As the subordinated deposit and debt are due in 2003, these
are restated to current assets and current liabilities, current portion of subordinated deposits and debts in the
annual accounts 2002.
221
Other long-term debt, represented by bearer bonds of zero coupon bonds, is secured by guarantees of the
ultimate parent company or assignment of a deposit. The company has placed deposits of equal term and amount
to the related bonds with the ultimate parent company or its branches. With respect to the debt guaranteed by the
ultimate parent company, the deposits and interest thereon are pledged to the ultimate parent company.
Interest on the deposits and the bearer bonds is receivable or payable, respectively, annually in arrears (except for
the zero coupon deposits and bonds).
If the company is obligated by law to make any deductions or withholdings from the interest or principal amount
of the bonds, the company will pay such additional amounts as may be necessary to ensure the receipt by the
bondholders of the full amount stated on the coupons or bonds. In this case, the company is entitled, upon not
less than 30 days’ notice, to redeem prior to maturity all, but not less than all, of the outstanding bonds.
(a) Long-Term Deposits
The detail of subordinated long-term deposits is as follows:
Nominal amount
in 000’s
–––––––––––––––––
¤
¤
¤
¤
¤
50,000
25,000
55,000
10,000
10,000
Interest
–––––––
3.572%*
3.592%**
3.547%**
3.493%**
3.717%**
Maturity Date
–––––––––––––
December 1, 2009
November 3, 2020
October 26, 2020
October 9, 2020
September 19, 2030
Book value
in 000’s
–––––––––––––––
¤
50,000
25,000
55,000
10,000
10,000
––––––––––––––
¤
150,000
––––––––––––––
––––––––––––––
––––––––––
* This subordinated deposit bears a floating interest rate, calculated as 6 months’ Euribor plus a margin of 0.45%.
In addition a maximum interest rate has been defined.
** The subordinated deposits bear a floating interest rate, calculated as 6 months’ Euribor plus a margin diverging from
0.28% to 0.30%.
The detail of zero coupon deposits as of December 31, 2002 is as follows:
Nominal amount
in 000’s
–––––––––––––––––
DEM
7,097
2,992
16,253
70,679
Yield*
––––––
Maturity Date
–––––––––––––
7.78%
7.78%
7.78%
7.78%
June 28, 2004
December 27, 2004
June 27, 2005
December 27, 2005
Book value
in 000’s
–––––––––––––––
¤
3,628
1,530
8,310
36,138
––––––––––––––
¤
49,606
––––––––––––––
––––––––––––––
––––––––––
* Additionally, the company receives a margin of 0.22% yearly on the present value of the DEM denominated zero
coupon deposits.
222
The detail of other long-term deposits as of December 31, 2002 is as follows:
Nominal amount
in 000’s
–––––––––––––––––
DEM 252,000
SKK 1,000,000
PLN
100,000
Interest
–––––––
2.120%
13.625%**
8.500%**
Maturity Date
–––––––––––––
March 22, 2008
December 1, 2004
June 1, 2006
Book value
in 000’s
–––––––––––––––
¤
128,845
23,988
24,997
––––––––––––––
¤
177,830
––––––––––––––
––––––––––––––
––––––––––
** In connection with these loans an annual margin of ¤ 27,499 for the SKK deposit/loan and ¤ 27,144 for the PLN
deposit/loan will be accounted for.
(b) Long-Term Debt
The detail of subordinated long-term debt is as follows:
Nominal amount
in 000’s
–––––––––––––––––
¤
¤
¤
¤
¤
50,000
25,000
55,000
10,000
10,000
Interest
–––––––
3.452%*
3.467%**
3.422%**
3.368%**
3.592%**
Maturity Date
–––––––––––––
December 1, 2009
November 3, 2020
October 26, 2020
October 9, 2020
September 19, 2030
Book value
in 000’s
–––––––––––––––
¤
50,000
25,000
55,000
10,000
10,000
––––––––––––––
¤
150,000
––––––––––––––
––––––––––––––
––––––––––
* This subordinated debt bears a floating interest rate, calculated as 6 months’ Euribor plus a margin of 0.45%.
In addition a maximum interest rate has been defined.
** The subordinated debts bear a floating interest rate, calculated as 6 months’ Euribor plus a margin diverging from
0.28% to 0.30%.
The detail of zero coupon bonds as of December 31, 2002 as follows:
Nominal amount
in 000’s
–––––––––––––––––
DEM
7,087
2,995
16,223
70,493
Yield
–––––
7.73%
7.73%
7.73%
7.73%
Maturity Date
–––––––––––––
June 28, 2004
December 27, 2004
June 27, 2005
December 27, 2005
Book value
in 000’s
–––––––––––––––
¤
3,624
1,531
8,295
36,042
––––––––––––––
¤
49,492
––––––––––––––
––––––––––––––
The detail of other long-term debt as of December 31, 2002 is as follows:
Nominal amount
in 000’s
–––––––––––––––––
DEM 252,000
SKK 1,000,000
PLN
100,000
Interest
–––––––
2.070%**
13.625%
8.500%
Maturity Date
–––––––––––––
March 22, 2008
December 1, 2004
June 1, 2006
Book value
in 000’s
–––––––––––––––
¤
128,845
23,988
24,997
––––––––––––––
¤
177,830
––––––––––––––
––––––––––––––
––––––––––
** In consideration of the low interest rate, a prepayment on the account of interest receivable/payable in respect of the
deposit/bond has been made, representing the difference between the above-indicated interest rate and 6.68%/6.61%,
discounted over the term of the deposit/bond.
223
The DEM 252,000,000 (¤ 128,845,554) loan has been issued under a private placement. The remaining loans
have been issued at the Luxembourg Stock Exchange.
Deferred Charges
The movement in deferred charges is as follows:
Book value
January 1
––––––––––––
Prepaid interest . . . . . . . . . . . . . . . . . . . . . . . .
Bond issuance expenses . . . . . . . . . . . . . . . . .
Management and underwriting fees . . . . . . . .
Discounts on zero coupon bonds . . . . . . . . . .
Premiums on other long-term deposits . . . . . .
Total deferred charges . . . . . . . . . . . . . . . . . . .
¤ 29,072,422
4,529
181,134
12,079,464
4,529
–––––––––––––
¤ 41,342,078
–––––––––––––
–––––––––––––
Amortization
––––––––––––
¤
3,927,901
3,404
136,134
2,891,991
3,404
–––––––––––––
¤ 6,962,834
–––––––––––––
–––––––––––––
Book value
December 31
–––––––––––––
¤ 25,144,521
1,125
45,000
9,187,473
1,125
–––––––––––––
¤ 34,379,244
–––––––––––––
–––––––––––––
Cash
Cash-affiliated company represents call deposits placed with a subsidiary of the parent company. The deposits
bear interest at 2.60%.
Shareholder’s Equity
The movement in shareholder’s equity is as follows:
Issued and
Paid-In
Capital
–––––––––
Balance January 1, 2001
Appropriation of
net income 2000 . . . .
Dividend . . . . . . . . . . .
Net income 2001 . . . .
Balance December 31,
2001 . . . . . . . . . . . . .
Balance January 1, 2002
Appropriation of
net income 2001 . . .
Dividend . . . . . . . . . . .
Net income . . . . . . . . .
Balance December 31,
2002 . . . . . . . . . . . . .
¤
Retained
Earnings
––––––––––
Net Income
for the Year
–––––––––––––
Total
–––––––
92,000
–
3,677,767
3,769,767
¤
–
¤
–
¤
–
–––––––––––
3,677,767
(3,677,767)
–
–––––––––––––
(3,677,767)
–
3,638,266
–––––––––––––
–
(3,677,767)
3,638,266
–––––––––––––
¤
92,000
–––––––––––
–––––––––––
¤
92,000
¤
–
–––––––––––––
–––––––––––––
–
¤
3,638,266
–––––––––––––
–––––––––––––
3,638,266
¤
3,730,266
–––––––––––––
–––––––––––––
3,730,266
–
–
–
––––––––––––
3,638,266
(3,638,266)
–
–––––––––––––
(3,638,266)
–
3,231,999
–––––––––––––
–
(3,638,266)
3,231,999
–––––––––––––
¤
92,000
–––––––––––
–––––––––––
¤
–
–––––––––––––
–––––––––––––
¤
3,231,999
–––––––––––––
–––––––––––––
¤
3,323,999
–––––––––––––
–––––––––––––
Common shares consists of 500 common authorized shares of which 200 are issued and outstanding at December
31, 2002. The shares have a par value of ¤ 460 each.
224
Income Taxes
The tax provision is based on a ruling with the Dutch tax authorities. Under this ruling a certain minimum taxable
income is to be reported based on the finance activities of the company.
Management Agreement
The company has entered into an agreement with SNS Bank N.V. for general office and accounting services. The
company has three managing directors, who are representatives of SNS Bank N.V..
The remuneration for management services amounts to ¤ 16,200 per annum.
General and administrative expenses
The general and administrative expenses are specified as follows:
2002
––––––––––––
Management fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Housing cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Audit fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advisory fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bond issuance cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¤
16,200
21,600
11,900
12,352
32,804
14,040
–––––––––––
¤ 108,896
–––––––––––
–––––––––––
2001
–––––––––––
¤
13,613
18,151
11,900
61,929
7,127
14,061
–––––––––––
¤ 126,781
–––––––––––
–––––––––––
Managing Directors:
H. Glotzbach
R. Rousseau
B. Toering
225
Other information
Auditor’s Report
Introduction
We have audited the financial statements of WestLB Finance Netherlands B.V., Amsterdam, The Netherlands, for
the year 2002. These financial statements are the responsibility of the company’s management. Our responsibility
is to express an opinion on these financial statements based on our audit.
Scope
We conducted our audit in accordance with auditing standards generally accepted in The Netherlands. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the company as at
December 31, 2002 and of the result for the year then ended in accordance with accounting principles generally
accepted in The Netherlands and comply with the financial reporting requirements included in Part 9, Book 2 of
the Dutch Civil Code.
Amsterdam, The Netherlands,
March 13, 2003
Ernst & Young
Appropriation of Net Income
The Articles of Incorporation provide that net income for the year is subject to the disposition decided upon at the
Annual Shareholders’ meeting. In case of an accumulated deficit, no dividends can be declared until such deficit
has been compensated with future net income.
Awaiting the decision by the shareholders, the net income for the year is separately included in the shareholders’
equity as unappropriated net income.
226
Taxation
The Federal Republic of Germany
The following is a general discussion of certain German tax consequences of the acquisition and ownership of
Notes and Loans (the “Instruments”). It does not purport to be a comprehensive description of all tax
considerations which may be relevant to a decision to purchase Instruments, and, in particular, does not
consider any specific facts or circumstances that may apply to a particular purchaser. This summary is based on
the laws of Germany currently in force and as applied on the date of this Prospectus, which are subject to
change, possibly with retroactive or retrospective effect.
Prospective purchasers of Instruments are advised to consult their own tax advisors as to the tax consequences
of the purchase, ownership and disposition of Instruments, including the effect of any state or local taxes,
under the tax laws of Germany and each country of which they are residents.
Tax Residents
Payments of interest on the Instruments, including interest having accrued up to the disposition of an Instrument and credited separately (“Accrued Interest”), if any, to persons who are tax residents of Germany (i.e.,
persons whose residence, habitual abode, statutory seat, or place of effective management and control is
located in Germany) are subject to German personal or corporate income tax (plus solidarity surcharge
(Solidaritätszuschlag) at a rate of 5.5 per cent. thereon). Such interest may also be subject to trade tax if the Instruments form part of the property of a German trade or business. Accrued Interest paid upon the acquisition
of an Instrument may give rise to negative income if the Instrument is held as a non-business asset.
Upon the disposition, assignment or redemption of an Instrument a holder holding the Instrument as a nonbusiness asset will have to include in his taxable income further amounts if the Instrument can be classified as
a financial innovation (Finanzinnovation) under German tax law (including, among other things, zero coupon
Notes, discounted Notes, provided the discount exceeds certain thresholds, and discounted Loans). In this
case, generally the difference between the proceeds from the disposition, assignment or redemption and the
issue or purchase price is deemed to constitute interest income subject to income tax (plus the solidarity
surcharge) in the year of the disposition, assignment or maturity of the Instrument. Where Instruments are
issued in a currency other than euro the difference will be computed in the foreign currency and will then be
converted into euro. Alternatively, the holder of the Instrument may show that such difference exceeds the
difference between the redemption and issue price of the Instrument to the extent attributable to the period
over which he has held such Instrument. In this case only the lower pro-rated initial yield to maturity as
determined as of the time of issue, minus interest, including Accrued Interest already taken into account, is
taxed as interest income. Where an Instrument forms part of the property of a German trade or business, each
year the part of the difference between the issue or purchase price of the Instrument and its redemption
amount (if such amount is fixed at the time of the acquisition) attributable to such year as well as interest
accrued must be taken into account as income and may also be subject to trade tax.
Capital gains from the disposition of Instruments, other than income described in the pre-preceding paragraph,
are only taxable to a German tax-resident individual if the Instruments are disposed of within one year after
their acquisition or form part of the property of a German trade or business, in which case the capital gains
may also be subject to trade tax. Capital gains derived by German-resident corporate holders of Instruments
will be subject to corporate income tax (plus solidarity surcharge at a rate of 5.5 per cent. thereon) and trade
tax.
If Notes are held in a custodial account which the Noteholder maintains with a German branch of a German or
non-German bank or financial services institution (the “Disbursing Agent”) a 30 per cent. withholding tax on
interest payments (Zinsabschlag), plus 5.5 per cent. solidarity surcharge on such tax, will be levied, resulting in
a total tax charge of 31.65 per cent. of the gross interest payment. Withholding tax on interest is also imposed
on Accrued Interest. The same applies to Loans, provided the obligor is a German branch of a German or nonGerman bank or financial services institution.
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In addition, if Notes qualify as financial innovations, as explained above, and are kept in a custodial account
which the Noteholder maintains with a Disbursing Agent such custodian will generally withhold tax at a rate of
30 per cent. (plus solidarity surcharge at a rate of 5.5 per cent. thereon) from the positive difference between
the redemption amount or proceeds from the disposition or assignment and the issue or purchase price of the
Notes if the Notes have been kept in a custodial account with such Disbursing Agent since the time of issuance
or acquisition, respectively. Where Notes are issued in a currency other than euro the difference will be
computed in the foreign currency and will then be converted into euro. If the Notes have not been kept in a
custodial account with a Disbursing Agent, withholding tax of 30 per cent. is applied to 30 per cent. of the
amounts paid in partial or final redemption or the proceeds from the disposition or assignment of the Notes,
respectively. In the case of Loans withholding tax of 30 per cent. will be withheld from the positive difference
between the redemption amount and the issue price by the obligor of these Instruments, if it is a German
branch of a German or non-German bank or financial services institution.
In computing the tax to be withheld the Disbursing Agent may deduct from the basis of the withholding tax any
Accrued Interest previously paid by the holder of a Note to the Disbursing Agent during the same calendar
year. This does not apply to Loans. In general, no withholding tax will be levied if the holder of an Instrument is
an individual (i) whose Instrument does not form part of the property of a German trade or business nor gives
rise to income from the letting and leasing of property; and (ii) who filed a withholding exemption certificate
(Freistellungsauftrag) with the Disbursing Agent but only to the extent the interest income derived from the Instrument together with other investment income does not exceed the maximum exemption amount shown on
the withholding exemption certificate. Similarly, no withholding tax will be deducted if the holder of the Instrument has submitted to the Disbursing Agent a certificate of non-assessment (Nichtveranlagungsbescheinigung)
issued by the relevant local tax office.
If Notes are not kept in a custodial account with a Disbursing Agent, withholding tax will apply at a rate of 35
per cent. of the gross amount of interest paid by a Disbursing Agent upon presentation of a coupon (whether or
not presented with the Note to which it appertains) to a holder of such coupon (other than a non-German bank
or financial services institution) (Tafelgeschäft). In this case proceeds from the disposition, assignment or
redemption of a coupon, and if the Notes qualify as financial innovations 30 per cent. of the proceeds from the
disposition, assignment or redemption of a Note, will also be subject to withholding tax at a rate of 35 per cent.
Where the 35 per cent. withholding tax applies Accrued Interest paid cannot be taken into account in
determining the withholding tax base. Again a solidarity surcharge at a rate of 5.5 per cent. of the withholding
tax applies so that the total tax burden to be withheld is 36.925 per cent.
Withholding tax and the solidarity surcharge thereon are credited as prepayments against the German personal
or corporate income tax and the solidarity surcharge liability of the German resident. Amounts overwithheld
will entitle the holder of an Instrument to a refund, based on an assessment to tax.
Non-residents
Interest, including Accrued Interest, and capital gains are not subject to German taxation, unless (i) the Instruments form part of the business property of a permanent establishment, including a permanent representative,
or a fixed base maintained in Germany by the holder of an Instrument; or (ii) the interest income otherwise
constitutes German-source income (such as income from the letting and leasing of certain German-situs
property). In the latter case a tax regime similar to that explained above under “Tax Residents” applies. Capital
gains from the disposition of Instruments other than proceeds from their sale or redemption recharacterised as
interest income for German tax purposes (as explained above under “Tax Residents”) are, however, only
taxable in the case of (i) above.
Non-residents of Germany are, in general, exempt from German withholding tax on interest and the solidarity
surcharge thereon. However, where the interest is subject to German taxation as set forth in the preceding
paragraph and Notes are held in a custodial account with a Disbursing Agent or the obligor of an Loan is a
German branch of a German or non-German bank or financial services institution, withholding tax is levied as
explained above under “Tax Residents”. Where Notes are not kept in a custodial account with a Disbursing
Agent and interest or proceeds from the disposition or redemption of a Note are paid by a Disbursing Agent to
a non-resident, withholding tax of 35 per cent. will apply as explained above under “Tax Residents”. The
withholding tax may be refunded based upon an applicable tax treaty.
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Inheritance and Gift Tax
No inheritance or gift taxes with respect to any Instrument will arise under the laws of Germany, if, in the case
of inheritance tax, neither the decedent nor the beneficiary, or, in the case of gift tax, neither the donor nor the
donee, is a resident of Germany and such Instrument is not attributable to a German trade or business for
which a permanent establishment is maintained, or a permanent representative has been appointed, in
Germany. Exceptions from this rule apply to certain German expatriates.
Other Taxes
No stamp, issue, registration or similar taxes or duties will be payable in Germany in connection with the
issuance, delivery or execution of the Instruments. Currently, net assets tax is not levied in Germany.
Tax reform proposal
On 17th March, 2003 the German Federal Government introduced draft legislation for granting tax amnesty to
taxpayers receiving unreported interest income from funds invested offshore. As part of the incentive to
repatriate such assets to Germany, the existing tax regime in respect of interest income would be changed.
Instead of the interest withholding tax currently imposed at a rate of 30 per cent. as a prepayment towards the
taxpayer’s ultimate tax liability, a security holder’s liability to income tax on interest received would be satisfied
by the withholding of tax from interest payments to be at a rate of 25 per cent. Where the individual tax liability
falls short of the 25 per cent. tax rate, however, any excess withheld would be refunded based on an
assessment to tax. It is presently unclear whether these plans will actually be implemented.
The Netherlands
The following is a general discussion of certain Netherlands tax considerations for prospective investors in a
Note. The discussion is based upon the tax laws of the Netherlands in force and in effect as of the date of this
Offering Circular. The discussion does not consider any investor’s particular circumstances, and is not intended
as tax advice.
Withholding tax
No Dutch withholding tax is required to be deducted by the Issuer from any payment by it under a Note. Exceptions apply if:
(a) (i) any payment under the Note is contingent (or deemed to be contingent) (in whole or in part) on the
profits of or on the distribution of profits by the Issuer or an affiliate company (verbonden lichaam) of it;
and
(ii) the Note has no fixed maturity or a maturity that exceeds 10 years; or
(b) (i) any payment under the Note becomes due contingent (or deemed to be contingent) (in whole or in part)
on the profits of or on the distribution of profits by the Issuer or an affiliate company of it; and
(ii) the Note has no fixed maturity or a maturity that exceeds 50 years; and
(iii) the Note is subordinated.
Tax on income or capital gains
No Dutch income tax (including that on capital gains) is payable by the holder of a Note (a “Noteholder“) in
respect of any payment to him under, or gain made by him from the disposal (or deemed disposal) or redemption
of, a Note. Exceptions apply if:
(i) the Noteholder is a Dutch resident (or deemed resident) for the purpose of the relevant Dutch tax law provisions; or
(ii) he is an individual and opts to be taxed as a Dutch resident; or
(iii) he has an enterprise (or an interest in an enterprise) which is either managed in the Netherlands or, in whole
or in part, carried on through a Dutch permanent establishment or representative or deemed permanent
establishment to which the Note is attributable; or;
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(iv) he performs other activities in respect of the Notes in the Netherlands (including (without limitation) activities which are beyond the scope of normal investment activities); or
(v) he has a substantial interest (or a deemed substantial interest) in the Issuer and, if he is not an individual,
such substantial interest does not belong to the assets of an enterprise.
Subject to the exceptions in this paragraph, a Noteholder will not become a Dutch resident (or deemed resident)
for tax purposes, or become subject to Dutch income tax (including that on capital gains), by reason only of the
Issuer´s performance, or the Noteholder´s acquisition (by way of issue or transfer to it), holding or enforcement,
of a Note.
Gift or inheritance tax
No Dutch gift or inheritance tax is payable in respect of any gift by, or the inheritance on the death of, a Noteholder of a Note. Exceptions may apply if:
(i) the Noteholder is a Dutch resident (or deemed resident) for the purposes of the relevant Dutch tax law
provision; or
(ii) at the time of the gift or his death, he has an enterprise (or an interest in an enterprise) which is, in whole or
in part, carried on through a Dutch permanent establishment or representative to which the Note is attributable; or
(iii) the Note is acquired by way of a gift from a Noteholder who dies within 180 days after the gift and who was
not at the time of the gift, but at the date of his death, a Dutch resident (or deemed resident).
Subject to the exceptions in this paragraph, a Noteholder will not become a Dutch resident (or deemed resident)
for tax purposes, or become subject to Dutch gift or inheritance tax, by reason only of the holding of a Note.
Turnover tax
No Dutch turnover tax is payable in respect of any payment by the Issuer under, or by a Noteholder in consideration for its acquisition (by way of issue or transfer to it) of, a Note.
Capital tax
No Dutch capital tax is payable in respect of the Issuer´s issue of any Note, except for capital tax on capital
contributions made (or deemed to be made) to the Issuer under any guarantee in respect of the Notes.
Other taxes or duties
No Dutch stamp duty or registration or similar tax (other than court fees) is payable in connection with the
Issuer´s issue or performance, or a Noteholder´s transfer or enforcement, of any Note.
The Netherlands Antilles
The following is a general discussion of certain Netherlands Antilles tax considerations for prospective investors
in a Note. The discussion is based upon the tax laws of the Netherlands Antilles in force and in effect as of the date
of this Offering Circular. The discussion does not consider any investor’s particular circumstances, and is not
intended as tax advice.
Withholding tax
No Netherlands Antilles withholding tax is required to be deducted by the Issuer from any payment by it under a
Note.
Tax on income or capital gains
No Netherlands Antilles income tax (including that on capital gains) is payable by a holder of a Note (a “Noteholder“) in respect of any payment to him under, or gain made by him from the disposal (or deemed disposal) or
redemption of, a Note. Exceptions may apply if:
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(i) the Noteholder is a Netherlands Antilles resident (or deemed resident) for the purpose of the relevant Netherlands Antilles tax law provisions; or
(ii) he has an enterprise (or an interest in an enterprise) which is, in whole or in part, carried on through a
Netherlands Antilles permanent establishment or representative or deemed permanent establishment to
which the Note is attributable.
Subject to the exceptions in this paragraph, a Noteholder will not become a Netherlands Antilles resident (or
deemed resident) for tax purposes, or become subject to Netherlands Antilles income tax on (including that on
capital gains), by reason only of the Issuer´s performance, or the Noteholder´s acquisition (by way of issue or
transfer to it), holding or enforcement, of a Note.
Gift or inheritance tax
No Netherlands Antilles gift or inheritance tax is payable in respect of any gift by, or inheritance on the death of,
a Noteholder of a Note. Exceptions apply if:
(i) the Noteholder is a Netherlands Antilles resident (or deemed resident) for the purposes of the relevant
Netherlands Antilles tax law provisions; or
(ii) at the time of the gift of his death, the Noteholder has an enterprise (or an interest in an enterprise) which is,
in whole or in part, carried on through a Netherlands Antilles permanent establishment or representative to
which the Note is attributable.
Subject to the exception in this paragraph, a Noteholder will not become a Netherlands Antilles resident (or
deemed resident) for tax purposes, or become subject to Netherlands Antilles gift or inheritance tax, by reason
only of the holding of a Note.
Turnover tax
No Netherlands Antilles turnover tax or sales or similar tax is payable in respect of any payment by the Issuer
under, or by a Noteholder in consideration for its acquisition (by way of issue or transfer) of, a Note.
Other taxes or duties
No Netherlands Antilles stamp duty or registration or similar tax is payable in connection with the Issuer´s issue
or performance, or a Noteholder´s transfer or enforcement, of any Note, except for stamp duty amounting to not
more than NAFL 10 per page of document and registration tax of NAFL 5 per document which are payable in the
case of registration in the Netherlands Antilles of the Notes and/or any document and court fees or if such
documents are brought into the courts of the Netherlands Antilles.
Proposed EU Directive on the Taxation of Savings Income
On 21st January, 2003, the European Council of Economics and Finance Ministers (ECOFIN) provisionally agreed
on proposals under which Member States will be required to provide to the tax authorities of another Member
State details of payments of interest (or similar income) paid by a person within its jurisdiction to an individual
resident in that other Member State, except that, for a transitional period, Belgium, Luxembourg and Austria will
instead be required to operate a withholding system in relation to such payments (the ending of such transitional
period being dependent upon the conclusion of certain other agreements relating to information exchange with
certain other countries). Additionally, it was agreed by ECOFIN that the adoption of the proposals by the European
Union would require certain other non-Member State countries to adopt a similar withholding system in relation
to such payments. ECOFIN announced that the proposals were to take effect from 1st January, 2004 although it is
understood that the proposals may now take effect from 1st January, 2005.
Holders who are individuals should note that, if this proposal is adopted, the Issuer will not pay additional
amounts under Condition 8 of the Terms and Conditions of the Notes and Condition 8 of the Terms and Conditions of the Loans, respectively, in respect of any withholding tax imposed as a result thereof.
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Subscription and Sale
The Dealers have in an amended and restated programme agreement dated 30th May, 2003 (as amended and
supplemented from time to time, the “Programme Agreement”) agreed with the Issuers a basis upon which they
or any of them may from time to time agree to purchase Notes and make Loans. Any such agreement will extend
to those matters stated under “Form of the Notes” and “Terms and Conditions of the Notes” and “Terms and
Conditions of the Loans” above. In the Programme Agreement, the Issuers and the Borrower have jointly and
severally agreed to reimburse the Dealers for certain of their expenses in connection with the establishment of the
Programme and the issue of Notes and the making of Loans under the Programme.
United States
The Notes and the Loans have not been and will not be registered under the Securities Act and include Notes in
bearer form that are subject to U.S. tax law requirements. Subject to certain exceptions, Notes and Loans may not
be offered, sold or delivered within the United States or to U.S. persons. Each Dealer has represented and agreed
and each further Dealer appointed under the Programme will be required to represent and agree that, except as
permitted by the Programme Agreement, it will not offer, sell or deliver a Note of any Series in bearer form or any
Loan within the United States or to U.S. persons.
In addition, until 40 days after the commencement of the offering of the Notes of the Tranche of which such Notes
are a part or any Loan, an offer or sale of the Notes or the Loan within the United States by any dealer (whether or
not participating in the offering or any Loan) may violate the registration requirements of the Securities Act if
such offer or sale is made otherwise than in accordance with an available exemption from registration under the
Securities Act.
Each issue of Index-Linked Notes, Index-Linked Loans, Dual Currency Notes and Dual Currency Loans shall be
subject to such additional U.S. selling restrictions as the Issuer and the relevant Dealer may agree, as indicated in
the applicable Pricing Supplement. Each relevant Dealer has agreed and each of the Dealers appointed under
the Programme will be required to agree that it will offer, sell or deliver such Notes or such Loans only in
compliance with such additional U.S. selling restrictions.
United Kingdom
Each Dealer has represented and agreed and each further Dealer appointed under the Programme will be
required to represent and agree that:
(a) in relation to Notes and Loans which have a maturity of one year or more, it has not offered or sold and prior
to the expiry of the period of six months from the Issue Date of Notes or the Disbursement Date of Loans
will not offer or sell any Notes or any Loans to persons in the United Kingdom except to persons whose ordinary
activities involve them acquiring, holding, managing or disposing of investments (as principal or agent) for the
purposes of their businesses or otherwise in circumstances which have not resulted and will not result in
an offer to the public in the United Kingdom within the meaning of the Public Offers of Securities Regulations
1995 (as amended);
(b) it has complied and will comply with all applicable provisions of the Financial Services and Markets Act 2000
(the “FSMA“) with respect to anything done by it in relation to the Notes or the Loans in, from or otherwise
involving the United Kingdom;
(c) in relation to any Notes issued by either of the Finance Subsidiaries which must be redeemed before the first
anniversary of the date of their issue, (i) it is a person whose ordinary activities involve it in acquiring, holding,
managing or disposing of investments (as principal or agent) for the purposes of its business and (ii) it has not
offered or sold and will not offer or sell any Notes other than to persons whose ordinary activities involve them in
acquiring, holding, managing or disposing of investments (as principal or as agent) for the purposes of their
businesses or who it is reasonable to expect will acquire, hold, manage or dispose of investments (as principal or
agent) for the purposes of their businesses where the issue of the Notes would otherwise constitute a contravention of Section 19 of the FSMA by the relevant Issuer; and
(d) it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of Section 21 of the
FSMA) received by it in connection with the issue of any Notes in circumstances in which Section 21 (1) of the
FSMA does not or, in the case of WestLB (as Issuer or Guarantor), would not, if it was not an authorised person,
apply to the Issuer or Guarantor.
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Japan
The Notes have not been and will not be registered under the Securities and Exchange Law of Japan (the
“Securities and Exchange Law”) and, accordingly, each Dealer has agreed and each additional Dealer to be
appointed under the Programme will be required to agree that it will not offer or sell any Notes, directly or
indirectly, in Japan or to, or for the benefit of, any resident of Japan (which term as used herein means any person
resident in Japan, including any corporation or other entity organised under the laws of Japan), or to others for reoffering or resale, directly or indirectly, in Japan or to a resident of Japan except pursuant to an exemption from
the registration requirements of, and otherwise in compliance with, the Securities and Exchange Law and any
other applicable laws and regulations of Japan.
Germany
The Notes may not be offered or sold in the Federal Republic of Germany other than in compliance with the
provisions of the German Securities Prospectus Act (Wertpapier-Verkaufsprospektgesetz) of 9th September,
1998, as amended, or of any other laws applicable in the Federal Republic of Germany governing the issue,
offering and sale of securities.
The Netherlands
Each Dealer has represented and agreed and each further Dealer appointed under the Programme will be
required to represent and agree that, in respect of Notes except those having a denomination of at least euro
50,000 or the equivalent thereof in other currencies, it has not, directly or indirectly, offered, sold, transferred or
delivered in The Netherlands (or, where WestLB Finance Netherlands B.V. is the relevant Issuer, in The Netherlands or elsewhere) and will not, directly or indirectly, offer, sell, transfer or deliver in The Netherlands (or, where
WestLB Finance Netherlands B.V. is the relevant Issuer, in The Netherlands or elsewhere), as part of their initial
distribution or at any time thereafter, any Notes (including rights representing an interest in a global Note) to any
person or entity other than to persons or entities (herein referred to as “Professional Market Parties”) who trade
or invest in securities in the conduct of a profession or business within the meaning of the 1995 Securities
Transactions Supervision Act (Wet toezicht effectenverkeer 1995) (the “Act”) and its implementing regulations
(which includes banks, pension funds, insurance companies, securities firms, investment institutions and treasuries and finance companies of large enterprises which trade or invest in securities) and that such offer of Notes,
the applicable Pricing Supplement and any announcements of the offer state that the offer is exclusively made to
Professional Market Parties and a copy of the Offering Circular and the applicable Pricing Supplement is submitted to the Netherlands Authority for the Financial Markets, (Stichting Autoriteit Financiële Markten) (the “AFM“)
before the offer is made, unless (a) the AFM has confirmed the availability of mutual recognition in respect of the
Offering Circular, any supplement to the Offering Circular and the applicable Pricing Supplement in respect of the
Notes, in which case the relevant Issuer and the relevant Dealer(s) shall procure that any advertisement or document in which the offer of Notes is publicly announced will be submitted to the AFM prior to publication thereof
and will mention the fact that the Offering Circular, any supplement thereto and the Pricing Supplement have
been published and are available for inspection at the registered office of the relevant Issuer and at the office of
the Agent, or (b) the Notes qualify as Euro-Securities (Euro-effecten) as defined in the Exemption Regulation
under the 1995 securities Act (Vrijstellingsregeling Wet toezicht effectenverkeer 1995) of 21st December, 1995,
as amended, provided that no general advertising or soliciting campaign is conducted for such Notes, or (c) the
Notes are offered exclusively to persons who are not established, domiciled or resident in The Netherlands and (i)
it is made clear that the Notes are not being offered and shall not be offered to persons established, domiciled or
resident in The Netherlands, (ii) each relevant Dealer sends to each person to whom he sells Notes (including
rights representing an interest in any Global Note) a confirmation or other notice setting forth the restrictions
stated in (i) and stating that by purchasing any such Note, each purchaser represents and agrees that it will send
to any such other person to whom it sells any such Note a notice containing substantially the same statement, (iii)
the rules of the state in which the offer of Notes is made are complied with as regards the offer, any offering
material (including the applicable Pricing Supplement), the advertising and the documents through which any
prospect of the offer is held out, (iv) a statement to the effect that the rules mentioned under (iii) have been
complied with is submitted to the AFM prior to the offer of the Notes being made, and (v) the statement mentioned under (iv) is included in any offering material, (including the relevant Pricing Supplement), advertising and
documents through which any prospect of the offer is held out, or (d) another exemption as provided for in the Act
or any of its implementing regulations applies and the requirements applicable to such exemption are complied
with, or (e) the AFM has upon request granted an individual exemption and the requirements applicable to such
exemption are complied with, or (f) the prohibition of section 3 sub-section 1 of the Act does not apply.
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The Act on savings certificates (Wet inzake spaarbewijzen) (the “Savings Certificates Act”), applies to, and
imposes certain restrictions on, Notes and the transfer and acceptance of Notes which qualify as “savings certificates”. For the purpose of this paragraph “savings certificates” are those Notes which are to bearer and which
constitute a claim for a fixed amount against the Issuer and on which interest does not become due during their
term. Rights representing an interest in a global Note do not constitute savings certificates. Pursuant to Article 3
of the Savings Certificates Act transfer and acceptance is done through the mediation of either the Issuer a
member of Euronext Amsterdam N.V. The prohibition of the Savings Certificates Act to transfer and accept
savings certificates other than through the mediation of either the relevant issuer or a member of Euronext
Amsterdam N.V. does not apply (i) to a transfer and acceptance by natural persons not acting in the conduct of a
business or profession; or (ii) to the initial issue of Notes to the first holders thereof. In addition, pursuant to the
Saving Certificates Act, certain identification requirements in relation to the issue, transfer of or payment on
Notes qualifying as“saving certificates” have to be complied with. The Saving Certificates Act does not apply to
the issue and trading of Notes qualifying as “saving certificates” if they are physically issued outside The Netherlands and are not immediately thereafter distributed within The Netherlands in the course of primary trading.
Netherlands Antilles
The Notes may not be offered or sold, directly or indirectly, to residents of the Netherlands Antilles (including
corporations and partnerships organised under the laws thereof), or to others for re-offering or resale unless they
have a specific licence to purchase securities or non-resident status under Netherlands Antilles foreign exchange
control regulations such as the Foreign Exchange Ordinance (Landsverordering Deviezenverkeer).
France
The Issuer, the Guarantor and each Dealer has represented and agreed, and each further Dealer appointed under
the Programme will be required to represent and agree, that it has not offered or sold and will not offer or sell,
directly or indirectly, Notes to the public in the Republic of France, and has not distributed or caused to be
distributed and will not distribute or cause to be distributed to the public in the Republic of France, the Offering
Circular or any other offering material relating to the Notes, and that such offers, sales and distributions have
been and shall only be made in the Republic of France to qualified investors (investisseurs qualifiés) acting for
their own account, as defined in, and in accordance with, articles L.411-1 and L.411-2 of the Code monétaire et
financier and décret no. 98-880 dated 1st October, 1998.
The Loans and the Certificates of Indebtedness may (subject to certain limited exceptions) only be offered, sold or
transferred in the Republic of France to credit institutions as defined in article L.511-1 of the Code monétaire et
financier.
General
Each Dealer has agreed and each further Dealer appointed under the Programme will be required to agree that it
will comply with all applicable laws and regulations in force in any jurisdiction in which it purchases, offers or
sells Notes or makes or assigns Loans or possesses or distributes the Offering Circular or any offering material
and will obtain any consent, approval or permission required by it for the purchase, offer or sale by it of Notes or
the making or assignment of Loans under the laws and regulations in force in any jurisdiction to which it is
subject or in which it makes such purchases, offers or sales of Notes or makes or assigns Loans and none of the
Issuers, the Borrower, the Guarantor nor any other Dealer shall have any responsibility therefor.
None of the Issuers, the Borrower, the Guarantor and the Dealers, represents that Notes or Loans may at any time
lawfully be sold in compliance with any applicable registration or other requirements in any jurisdiction, or
pursuant to any exemption available thereunder or assumes any responsibility for facilitating such sale.
With regard to each Tranche of Notes and each Loan, the relevant Dealer will be required to comply with such
other additional restrictions as the relevant Issuer or the Borrower (as applicable) and the relevant Dealer shall
agree and as shall be specified in the applicable Pricing Supplement.
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General Information
Authorisation
The establishment of the Programme (and, in the case of the Guarantor, the Guarantee Agreements) have been
duly authorised by WestLB AG and by resolutions of the Managing Board of WestLB Finance Curaçao N.V. and the
Managing Directors of WestLB Finance Netherlands B.V. dated 12th October, 1994 and 7th October, 1994, respectively.
The increase in the aggregate nominal amount of the Programme size to ¤ 30,000,000,000 has been duly
authorised by the board of WestLB AG on 18th March, 2003 and by resolutions of the Managing Directors
of WestLB Finance Curaçao N.V. and the Managing Directors of WestLB Finance Netherlands B.V. each dated
28th April, 2003.
Translation
The Issuers, the Borrower and the Guarantor, as applicable, have satisfied themselves that the German translation
of the Terms and Conditions of the Notes and the Terms and Conditions of the Loans and the Senior Guarantee
and the Subordinated Guarantee accurately reflect the corresponding English version thereof in all material respects.
Listing of Notes on the Luxembourg Stock Exchange
Application has been made to list Notes issued under the Programme on the Luxembourg Stock Exchange.
A legal notice relating to the Programme and the Articles of Incorporation of WestLB AG, WestLB Finance
Curaçao N.V. and WestLB Finance Netherlands B.V. has been lodged with the Luxembourg trade and companies
register (Registre du Commerce et des Sociétés de Luxembourg), where such documents may be examined and
copies obtained. The Luxembourg Stock Exchange has allocated to the Programme the No. 9506 for listing
purposes.
Documents Incorporated by Reference
Except in the case of Frankfurt Listed Notes, the following documents shall be deemed to be incorporated in, and
to form part of, this Offering Circular:
(a) the most recently published annual and interim report, if any, of the Guarantor and the financial statements of
each of WestLB Finance Curaçao N.V. and WestLB Finance Netherlands B.V. from time to time;
(b) all supplements to this Offering Circular (including any Pricing Supplement in respect of any Notes as
described below) circulated by the Issuers from time to time in accordance with the undertakings given
by the Issuers in the Programme Agreement described in “Subscription and Sale” above,
save that any statement contained herein or in a document which is incorporated by reference herein shall be
deemed to be modified or superseded for the purpose of this Offering Circular to the extent that a statement
contained in any such subsequent document which is deemed to be incorporated by reference herein modifies or
supersedes such earlier statement (whether expressly, by implication or otherwise).
Copies of any or all of the documents which are incorporated herein by reference will be available free of charge
from the specified offices of each of the Issuers, WestLB International S.A., Luxembourg in its capacity as listing
agent (the “Luxembourg Listing Agent”) for Luxembourg Listed Notes and WestLB AG in its capacity as listing
agent (the “Frankfurt Listing Agent”) for the Frankfurt Listed Notes.
In relation to each issue of Notes which are to be listed, this Offering Circular shall be deemed to be supplemented
by the applicable Pricing Supplement.
235
Listing of Notes on the Frankfurt Stock Exchange
Notes to be issued under the ¤ 30.000.000.000 Debt Issuance Programme have been admitted by the Frankfurt
Stock Exchange.
If Tranches of Notes under the Programme are listed on the Frankfurt Stock Exchange, a Paying Agent for the
Frankfurt Stock Exchange will be appointed. This Paying Agent is expected to be WestLB AG and its branches.
Clearing and settlement will be made through Clearstream Banking AG.
Supplements to this Börsenzulassungsprospekt in accordance with § 44 BörsZulV (Stock Exchange Admission
Regulation) will be published by keeping copies available for distribution free of charge at the Paying Agents
in the Federal Republic of Germany specified in the Börsenzulassungsprospekt and at the Admission Board of
the Frankfurt Stock Exchange. Notice of where the relevant supplement may be obtained will be published in
the Handelsblatt.
Documents Available for Inspection
So long as Notes are capable of being issued under the Programme, copies of the following documents will, when
published, be available for inspection and with respect to items (ii) and (iii) available without charge from the
registered offices of the Agent and from the specified office of the Paying Agent for the time being in
Luxembourg:
(i) the constitutional documents (together with a translation in English) of each Issuer;
(ii) the consolidated financial statements of the Guarantor in respect of the financial years ended 31st December,
2002, 31st December, 2001 and 31st December, 2000 and the financial statements of each Issuer in respect of
the financial years ended 31st December, 2002, 31st December, 2001 and 31st December, 2000;
(iii) all future audited annual financial statements of each Issuer and the Guarantor and all future published
interim financial statements of the Guarantor and, if any, of the Issuers. At present, interim financial statements are published by the Guarantor for the first six months of the year ending 30th June and the Finance
Subsidiaries do not publish interim financial statements.
(iv) the Programme Agreement and the Agency Agreement (which contains the forms of the (TEFRA C global
Note and the TEFRA D temporary and permanent global Notes, the definitive Notes, the Receipts, the Coupons and the Talons);
(v) this Offering Circular;
(vi) any future prospectuses, offering circulars, information memoranda and supplements (including the Pricing
Supplements in connection with listed Notes) to this Offering Circular and any other documents incorporated
herein or therein by reference; and
(vii) in the case of an issue of Notes subscribed pursuant to a Subscription Agreement, the Subscription Agreement (or equivalent document).
In addition, a copy of the documents set out in (v), (vi) and (vii) above will be available free of charge from the
specified office of the relevant Paying Agent where so required by the relevant stock exchange on which any
Series of Notes is to be listed.
Furthermore, for so long as any Frankfurt Listed Notes remain outstanding, all documents referred to in this
Offering Circular may be inspected free of charge during normal business hours on any day banks are open for
general business in Germany, at the specified offices of WestLB AG, Global Financial Markets, Herzogstrasse 15,
40217 Düsseldorf.
Euroclear and Clearstream, Luxembourg
The Notes have been accepted for clearance through Euroclear and Clearstream, Luxembourg. If the Notes are to
clear through any other Relevant Clearing System (including Clearstream Banking AG and Euroclear France) the
appropriate information will be specified in the applicable Pricing Supplement. The appropriate codes for each
Tranche to be held through the Relevant Clearing System allocated by the Relevant Clearing System will be
contained in the applicable Pricing Supplement.
236
Material Change
Save as disclosed in this Offering Circular, there has been no adverse change in the financial position of any of the
Issuers or the Borrower or the Guarantor or its consolidated subsidiaries which is material in the context
of the Programme or the issue and offering of Notes or the making of Loans thereunder, since 31st December,
2002, the date as at which the most recent audited financial statements of such Issuer or the Borrower or the
Guarantor were prepared.
Litigation
In 1994, Germany’s Association of Private Banks (BdB) filed a complaint with the European Commission against
the 1992 integration of the State (Land) of North Rhine-Westphalia’s Wohnungsbauförderungsanstalt (Wfa)
into WestLB. The integration brought WestLB some two billion euros in additional liability capital. In a ruling
against the private banks’ first complaint, the Federal Banking Supervisory Office and the Directorate-General of
the European Commission responsible for banks upheld the recognition of Wfa’s assets as qualified contributions
towards WestLB’s capital adequacy.
In 1999, however, the European Commission issued a decision in which it held that the remuneration for the Wfa
integration was too low and should be regarded as impermissible aid. According to the decision, around
¤ 800 million of the aid should be reimbursed to the State of North Rhine-Westphalia. Including interest, the
repayment amount was around ¤1.5 billion by the end of 2001. The Federal Government, the State of North
Rhine-Westphalia and WestLB have filed appeals against the Commission’s decision with the European Courts.
The brief filed in these so-called proceedings for annulment alleges that the Commission’s decision is not proper
from a business standpoint and from the standpoint of the letter of the law and the laws on state aid.
The Bank is legally required to implement the Commission’s decision, because European law prohibits postponing a decision’s enforcement. The form proposed by the appellants for implementation of the Commission’s
decision was a value increase model, with an added portion of the Bank’s growth since the Wfa integration being
assigned to the State of North Rhine-Westphalia. However, the European Commission rejected the proposal and
instituted proceedings for failure to fulfil an obligation against the Federal Republic of Germany, alleging that the
proposal was not an implementation of the decision and that Germany was in breach of contract.
The European Court of Justice handed down its ruling in the matter of transposition on 12th December, 2002.
Technically, the Federal Republic of Germany did not prevail. However, the Court of Justice also ruled that a
transposition involving no cash was fundamentally compatible with Community law. This was a key point where
WestLB and the European Court of Justice agreed, namely that non-cash solutions were permissible.
In a decision dated 6th March, 2003, the European Court ruled on the crux of the controversy surrounding the
Wfa integration, i. e. whether the contribution of Wfa’s capital and the remuneration for such contribution should
be regarded as impermissible state aid.
Here, the Court held that the decision of the European Commission in 1999 was invalid, because the Commission
did not give sufficient reasons with respect to the 12 per cent. base rate of return and 1.5 per cent. risk premium
it alleged should have been the basis of the remuneration.
Since both of these parameters were of paramount importance to the economic analysis underlying the
Commission’s strategy, the Court was unable to make any definitive judgement on the reasonableness of the Wfa
remuneration.
However, the Court also explained that it was not permitted to substitute its own economic analysis for the
Commission’s, and by doing so, afforded the Commission considerable leeway in the economic points of the
matter at hand, points which are taken out of the realm of the Court’s judgement as a result.
Therefore, it is to be expected that the Commission will follow the standard procedure in such cases and issue a
new decision, since its original decision was overturned.
Save as disclosed above there are, and during the past two financial years have been, no litigation, arbitration or
administrative proceedings relating to claims or amounts which could have material effect on the financial situation of the relevant Issuer, the Borrower or the Guarantor nor, to the best of the knowledge and belief of each
Issuer, the Borrower and the Guarantor, are any such proceedings pending or threatened.
237
––––––––––––––––––––––––––––––––––––––––––––––
Düsseldorf/Münster, Willemstad and Amsterdam, in May 2003
WestLB AG
238
Aufgrund des vorstehenden Prospekts sind gemäß § 44 Börsenzulassungs-Verordnung unter dem
¤ 30.000.000.000,–
Debt Issuance Programme
der
WestLB AG
Düsseldorf / Münster, Bundesrepublik Deutschland
als Emittentin und Garantin für Schuldverschreibungen der
Curaçao, Niederländische Antillen
und der
Amsterdam, Niederlande
zu begebende Schuldverschreibungen gemäß § 44 Börsenzulassungs-Verordnung an der Frankfurter
Wertpapierbörse zum Handel im amtlichen Markt zugelassen worden.
Frankfurt am Main und Düsseldorf/Münster, im Mai 2003
WestLB AG
239
The Issuers
WestLB AG
Herzogstrasse 15
40217 Düsseldorf
Germany
Berg Arrarat 1
Curaçao
Netherlands Antilles
Pettelaarpark 120
5216 PT´s-Hertogenbosch
The Netherlands
Dealers
Daiwa Securities SMBC Europe Limited
5 King William Street
London EC4N 7AX
England
Peterborough Court
133 Fleet Street
London EC4A 2BB
England
J.P. Morgan Securities Ltd.
125 London Wall
London EC2Y 5AJ
England
Lehman Brothers International (Europe)
One Broadgate
London EC2M 7HA
England
Merrill Lynch Financial Centre
2 King Edward Street
London EC1A 1HQ
England
Morgan Stanley & Co. International
Limited
25 Cabot Square
Canary Wharf
London E14 4QA
England
UBS Limited
1 Finsbury Avenue
London EC2M 2PP
England
WestLB AG
Herzogstrasse 15
40217 Düsseldorf
Germany
Agent
WestLB AG
Herzogstrasse 15
40217 Düsseldorf
Germany
Paying Agent
WestLB International S.A.
32-34 boulevard Grande-Duchesse Charlotte
L-2014 Luxembourg
240
Legal Advisers
To the Issuers
as to Netherlands and
Netherlands Antilles Law and Tax
De Brauw Blackstone
Westbroek P.C.
1345 Avenue of the Americas
19th Floor
New York, NY 10105
USA
To the Dealers
as to English Law
as to German Law
Allen & Overy
Taunustor 2
60311 Frankfurt am Main
Germany
Hengeler Mueller
Bockenheimer Landstrasse 51
60325 Frankfurt am Main
Germany
Luxembourg Listing Agent
WestLB International S.A.
32-34 boulevard Grande-Duchesse Charlotte
L-2014 Luxembourg
German Listing Agent
WestLB AG
Herzogstrasse 15
40217 Düsseldorf
Germany
241

WestLB Finance Netherlands BV

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