Deutsche Pfandbriefbank AG / Key word(s): Miscellaneous
Deutsche Pfandbriefbank AG: Expert in Estate UK-3 securitization finds loss allocation to credit linked notes in full amount of GBP 113.8 million permissible - therefore no negative impact on Deutsche Pfandbriefbank results

28-Jun-2019 / 15:33 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The trustee appointed expert for the securitization transaction Estate UK-3 (UK-3), which hedges the credit risk exposure of a real estate loan portfolio via credit linked notes, today informed on its findings. It found the allocation of the full amount of a credit loss of GBP 113.8 million permissible. The loss allocation leads to a corresponding reduction of the repayments under the credit linked notes. The expert thereby fully affirmed the position of Deutsche Pfandbriefbank AG (pbb), the issuer of UK-3. pbb will allocate the loss to the credit linked notes at the earliest possible date, which is 20 September 2019. The loss allocation will lead to a full write-down of the credit linked notes of classes A2, B, C, D and E and will reduce the nominal amount of class A1+ from GBP 400,000 by about 0.1 %. With the loss being allocated to the credit linked notes, there will be no negative impact on pbb's results. A predecessor institution of pbb had entered into UK-3 to hedge the credit risk exposure of a real estate loan portfolio via credit linked notes in 2007. The real estate loan portfolio subsequently suffered a loan default. pbb envisaged allocating a loss of GBP 113.8 million resulting from the default to the credit linked notes. Deloitte GmbH Wirtschaftsprüfungsgesellschaft, the trustee of UK-3, expressed doubts with respect to the permissibility of the loss allocation (please refer to pbb's ad-hoc announcements dated 18 January 2016 and 13 December 2016). In June 2017, the trustee therefore appointed an independent expert to determine, whether the conditions for a loss allocation were met.

Contact:
Walter Allwicher
Managing Director, Communications
+49 (0) 89 2880 28 787

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Deutsche Pfandbriefbank AG published this content on 28 June 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 June 2019 13:50:05 UTC