DGAP-News: HSH N Funding I: Participation in losses and non-payment of coupons for HSH Nordbank's hybrid capital

(firmenpresse) - DGAP-News: HSH N Funding I / Key word(s): Dividend/Final Results
HSH N Funding I: Participation in losses and non-payment of coupons
for HSH Nordbank's hybrid capital

07.03.2011 / 17:09

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March 07, 2011

HSH N Funding I (the Company) announces the following:

The Company was informed by HSH Nordbank AG, Hamburg and Kiel ('the Bank'),
that the financial statements for the business year 2010 of the Bank
according to HGB ('Handelsgesetzbuch' / German GAAP) will report a balance
sheet loss/net loss for 2010. Therefore, no coupon payments for the fiscal
year 2010 will be made by the Bank on silent participations and profit
participation capital. Moreover, these hybrid instruments will participate
in the Bank's balance sheet loss/net loss.

For the instruments issued on a fiduciary basis by Banque de Luxembourg
with ISIN XS0142391894 listed on Luxembourg Stock Exchange which are based
on a silent participation, this means that no coupon payment will be made
for the profit period 2010 and that these instruments will participate in a
balance sheet loss for the fiscal year 2010 via the silent participation.
The book value of the silent participation was reduced by approx. 4 percent
to approx. 79 percent. The exact amount of loss participation will be
finally announced following the adoption of the Bank's financial statements
by the Supervisory Board of the Bank on 31 March, 2011.

The following instrument issued on a fiduciary basis by Banque de
Luxembourg is affected:

EUR 500,000,000 HSH Nordbank Sparc Securities with the ISIN XS0142391894
listed on Luxembourg Stock Exchange; coupon payment date: 30 June 2011

Description of the fiduciary structure:
With the proceeds of the issue of the SPARC Securities, the Fiduciary has,


in its own name but at the sole risk of the holders of the SPARC
Securities, acquired 500,000 Class B Preference Shares issued by HSH N
Funding I (formerly LB Kiel Funding I, the 'Company'). With the proceeds
of the issue of the Class B Securities, the Company acquired a silent
participation in the commercial enterprise (Handelsgewerbe) of HSH Nordbank
(formerly Landesbank Schleswig-Holstein Girozentrale) in the form of a
Stille Gesellschaft.
The SPARC Securities represent a pro rata interest in the Class B
Securities (prior to redemption thereof) and (after such redemption), the
Silent Participation and all payments received by the Fiduciary thereunder.
Redemption of the Class B Securities will, unless the Silent Participation
has been repaid, occur by way of a transfer ('Transfer') of the Company's
rights under the Participation Agreement to the Fiduciary. The Fiduciary
holds (prior to Transfer) the Class B Securities and (after Transfer) the
Silent Participation in its own name, on a fiduciary basis, but solely at
the risk and for the account of the Securityholders. The SPARC Securities
evidence the existence of fiduciary contracts between the Securityholders
and the Fiduciary, the terms of which Securityholders are deemed to have
acknowledged and agreed by accepting SPARC Securities and pursuant to which
the Fiduciary is only obliged to pass on funds actually received from the
Company (under the Class B Securities prior to Transfer) or the Bank (under
the Participation Agreement after Transfer) to the Securityholders but has
no other payment obligations to the Securityholders. The amounts of
distributions under the Class B Securities and the Participation Agreement
depend on the profits of the Bank.

Cayman Islands, March 07, 2011

Company: HSH N Funding I
P.O. Box 309,
Ugland House,
Grand Cayman,
KY1-1104,
Cayman Islands


End of Corporate News

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07.03.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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114668 07.03.2011Unternehmensinformation / Kurzprofil:
Bereitgestellt von Benutzer: EquityStory
Datum: 07.03.2011 - 17:09 Uhr
Sprache: Deutsch
News-ID 362111
Anzahl Zeichen: 4755

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