DGAP-News

Aareal Bank AG: Aareal Bank repays SoFFin silent participation in full (news with additional features)

DGAP-News: Aareal Bank AG / Key word(s): Miscellaneous
Aareal Bank AG: Aareal Bank repays SoFFin silent participation in full
(news with additional features)

30.10.2014 / 10:11

---------------------------------------------------------------------

Aareal Bank repays SoFFin silent participation in full

- Residual amount of EUR300 million transferred - German Financial
Markets Stabilisation Fund's exposure to Aareal Bank ends

- CEO Dr Wolf Schumacher: SoFFin contributed to secure Aareal Bank's
fully viable business model in a difficult market phase

Wiesbaden, 30 October 2014 - Having obtained approval from the German
Federal Financial Supervisory Authority (BaFin) to repay the silent
participation provided by the German Financial Markets Stabilisation Fund
(SoFFin) in full, Aareal Bank today repaid the residual amount of EUR300
million to SoFFin. In accordance with the repayment agreement, Aareal Bank
will additionally pay interest accruing until the repayment date on the
next regular maturity date on 31 March 2015 to SoFFin. Furthermore, in line
with existing contractual stipulations, the agreement provides for a pro
rata temporis share due to SoFFin in any dividends distributed by Aareal
Bank, by way of a dividend-linked additional payment for the 2014 financial
year.

With the full repayment of the silent participation, SoFFin's support to
Aareal Bank has therefore come to an end. In early 2009 - at the height of
the crisis affecting financial markets and the economy - the Bank had drawn
on support available within the scope of a government package to stabilise
the financial services sector. The objective was to protect Aareal Bank's
sustainably profitable business in what was a very difficult market
environment at the time. In addition to the silent participation, which had
an original amount of EUR525 million and accrued interest at 9 per cent per
annum, SoFFin had granted a guarantee facility to Aareal Bank for unsecured
issues of up to EUR4 billion. The Bank commenced its gradual repayment of
the silent participation in the summer of 2010, with an initial tranche of
EUR150 million, followed by a further EUR75 million tranche in 2011. At the
end of March 2012, the Bank returned all issuance guarantees. Aareal Bank
always fully serviced the government equity support measure taken out. The
Bank paid a total of approximately EUR 237 million to date in interest and
guarantee fees to SoFFin.

"We are deeply grateful to the German Federal Government, the German
parliament, and to SoFFin. The decision, taken in the year 2009, to provide