DGAP-News: IKB Deutsche Industriebank AG: Invitation to submit offers to sell IKB Funding Trust I hybrid securities and issue of a subordinated bond
(firmenpresse) - DGAP-News: IKB Deutsche Industriebank AG / Key word(s): Bond
IKB Deutsche Industriebank AG: Invitation to submit offers to sell IKB
Funding Trust I hybrid securities and issue of a subordinated bond
18.09.2013 / 15:43
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Invitation to submit offers to sell IKB Funding Trust I hybrid securities
and issue of a subordinated bond
[Düsseldorf, 18 September 2013] The IKB Group (IKB) is today inviting
holders of the Trust Preferred Securities (ISIN DE0008592759) (the
'securities') issued by IKB Funding Trust I to submit offers to sell these
securities. The acceptance period ends on 28 October 2013. The conditions
of the offer are subject to change.
The acceptance of the sale offer is subject to various conditions,
including the approval of proposed contractual amendments to the conditions
of the Trust Preferred Securities by not less than 66 2/3% of investors.
IKB is also planning to issue a separate subordinated bond (maturing in
2030, no interest coupon) with a nominal value of EUR 100 at a price of EUR
30. The internal rate of return is around 7.3% p.a. The subordinated bond
can be subscribed to from 18 September 2013 until 28 October 2013.
Holders of IKB Funding Trust I Trust Preferred Securities have two options:
1. Approval of contractual amendments and sale
On acceptance of the offer of sale, investors will receive a payment of EUR
30 for each Trust Preferred Security issued by IKB Funding Trust I with a
nominal value of EUR 100. This consists of the offer price of EUR 27 and an
amount of EUR 3 for approval of the proposed contractual amendments. No
accrued interest will be paid.
2. Approval of contractual amendments
Holders of Trust Preferred Securities issued by IKB Funding Trust I
consenting to the proposed contractual amendments without simultaneously
offering their securities will receive 3% of the nominal amount of EUR 100,
equal to EUR 3 per security.
If the proposed contractual amendments of the IKB Funding Trust I Trust
Preferred Securities are consented to by investors who together represent
at least 66 2/3% of the total outstanding issue, the contractual amendments
to the conditions apply for all holders of IKB Funding Trust I Trust
Preferred Securities. Only investors who declare their approval on time
will receive the approval premium of EUR 3.
IKB is offering the holders of IKB Funding Trust I securities the
opportunity to redeem their securities at what IKB considers to be a price
highly advantageous to them. If this purchase offer does not meet with the
necessary acceptance, IKB has no intention to submit any further offers,
and will instead use the IKB Funding Trust I securities as perpetual,
low-interest subordinated financing. IKB does not expect to pay coupons on
the securities for many years.
Morgan Stanley&Co International plc, UniCredit Bank AG and IKB Deutsche
Industriebank AG will act as joint dealer managers for the purchase
programme. The Trust Preferred Securities will be acquired by Matrona GmbH,
a company of the IKB Group. The transaction is expected to strengthen the
capital base of IKB AG.
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Notes
The IKB Funding Trust I issued Trust Preferred Securities in 2002 with a
total volume of EUR 250 million of which around EUR 75 million are still
outstanding. The securities are undated and constitute part of the
regulatory capital of IKB.
Interest payments on the securities have been suspended since 2008 as IKB
AG has not reported profits in any financial year since 2007. Servicing the
compensation agreements of a total amount of EUR 1,151.5 million and the
value recovery rights of the hybrid investors mean that IKB AG will
probably not report any, or only minimal, profit for a long period to come,
even if operating activities are profitable.
The offer for purchase has been approved by the regulatory authorities.
IKB ended the first purchase programme for the securities on 30 October
2012. Unlike the current offer, the 2012 purchase programme also included
the listed issues of IKB Funding Trust II (ISIN XS0194701487). The required
approval rating for the proposed contractual amendments to the Trust
Preferred Securities issued by IKB Funding Trust I of not less than 66 2/3%
of investors needed to implement the purchase offer was not achieved at
that time. On the basis of the 2012 purchase programme, IKB therefore did
not acquire the securities of IKB Funding Trust I or IKB Funding Trust II.
From 18 September 2013 to 28 October 2013, IKB is publicly offering
subscription to the subordinated bond in Germany and Austria on the basis
of its current terms of issue, which can also be accessed under www.ikb.de.
Those interested in subscribing to the bond should contact their bank or
custodian institution.
With the way the planned subordinated bond is designed, IKB would like to
give the investors the opportunity to invest their returns from a sale of
Funding Trust I securities in subordinated securities and thereby
prospectively receive a 100% repayment after the 17 year duration of the
subordinated bond. However, the acceptance of subscriptions by IKB will
depend on its capital requirements after the Funding Trust I tender has
been carried out. IKB therefore reserves the right to serve none or not all
of the subscriptions or to serve them only in part.
Holders of Trust Preferred Securities issued by IKB Funding Trust I who
wish to submit offers and/or consent to the contractual amendments should
contact their bank or custodian institution. Further information is
available on www.ikb.de.
Contact:
Dr. Jörg Chittka, telephone: +49 211 8221-4349; Armin Baltzer, telephone:
+49 211 8221-6236, fax: +49 211 8221-6336, e-mail: presse(at)ikb.de
End of Corporate News
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18.09.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
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Language: English
Company: IKB Deutsche Industriebank AG
Wilhelm-Bötzkes-Straße 1
40474 Düsseldorf
Germany
Phone: +49 (0)211 8221-4511
Fax: +49 (0)211 8221-2511
E-mail: investor.relations(at)ikb.de
Internet: www.ikb.de
ISIN: DE0008063306
WKN: 806330
Listed: Freiverkehr in Berlin, Düsseldorf, Hannover, Stuttgart;
Frankfurt in Open Market (Entry Standard)
End of News DGAP News-Service
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Datum: 18.09.2013 - 15:43 Uhr
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