On Monday July 23, HSH Nordbank repaid its last bond, for the amount of 3 billion, guaranteed by the Special Financial Market Stabilisation Fund (SoFFin).
The SoFFin guarantee facility, which was applied for in 2008 and utilization of which peaked at 17 billion, was thereby repaid on schedule. HSH Nordbank's expenses pertaining to provision of public-sector guarantees will thereby again come down substantially. In total, HSH Nordbank paid more than 300 million for SoFFin guarantees.
The Bank has steadily strengthened its funding and expanded its funding base over the past few years.
"With the repayment of our last SoFFin bond we have regained a further significant step along the way to our complete independence," said Paul Lerbinger, CEO of HSH Nordbank.
"Today again we are able to source funding on the capital market independently from government support measures. This being enhanced by a significantly improved perception of the Bank among our funding partners since completion of the EU state aid proceeding and the introduction of our new business model."
In the first quarter of 2012 alone HSH Nordbank over fulfilled its target for new issues. In May the Bank in addition to that successfully placed its second benchmark mortgage pfandbrief bond this year. The amount was 500 million in each case.
Source: HSH Nordbank