Hypo Real Estate Holding AG ("HRE") initiated the tender process for its Deutsche Pfandbriefbank AG (pbb) subsidiary, taking the next important step for the re-privatization of pbb. HRE is looking to sell up to 100% of its stake in pbb, thus fulfilling a condition imposed by the European Commission in the summer of 2011. Preparation for an initial public offering, as an alternative option for re-privatization, is ongoing in parallel.
pbb is one of the leading European finance providers for commercial real estate and public-sector investments. It is the largest issuer of Pfandbriefe (German covered bonds) with regard to outstanding volume, and ranks amongst the top five covered bond issuers in Europe (issuance volume in 2013). In its European core markets, pbb has a strong local presence, with professionals on the ground covering all functions of the financing process, including credit risk management.
Combined with structuring expertise and a network of partners, this enables the bank to structure more complex and cross-border financings for its clients. Therefore, pbb enjoys an outstanding position in the growing European real estate finance market. Thanks to its conservative approach to risk management, pbb has a high-quality credit portfolio. The bank has a solid capitalization.
Andreas Arndt, pbb's co-CEO and Chief Financial Officer, said: "We are embarking upon re-privatisation, against the background of a very positive performance over recent years, solid results for 2014, and an outstanding position on the credit and capital markets."
Dr Günther Bräunig, Chairman of the Supervisory Board of HRE, said: "Over the last years pbb has consistently laid the foundations allowing to pursue the re-privatisation. We are confident that the project will be successfully concluded during the course of this year."
Source: pbb Deutsche Pfandbriefbank