Depfa to buy €1.2 billion of its covered bonds from FMS Wertmanagement

By Wendy Van Sickle

Columbus, Ohio, May 15 – Depfa ACS will repurchase in June a number of its covered bonds totaling about €1.2 billion in principal amount currently held by FMS Wertmanagement AoR, according to a notice.

The notes will be purchased at a price to equal the sum of the value of all remaining payments of principal and interest discounted at the relevant purchase yield that will be subject to market conditions, including the relevant interest rate curve, purchase spread and applicable market conventions for each covered bond, which will vary depending on the specific commercial characteristics of each covered bond.

The following notes will be repurchased:

• CHF 625,000 (CHF 3,735,000 outstanding) notes due July 31, 2031;

• $10.15 million ($17.24 million outstanding) notes due March 16, 2037;

• €10 million notes due April 25, 2025;

• €15 million notes due July 6, 2031;

• €15 million notes due July 6, 2036; and

• €20 million notes due June 30, 2021.

Depfa intends to cancel the covered bonds after the repurchase.

Immediately following the covered bond repurchase, FMS will purchase from Depfa about €1.32 billion of public sector assets as a further step in the winddown plan to help reduce the cover pool of Depfa.

FMS is the parent company of Depfa Bank plc, which is the parent of Depfa ACS and Depfa Pfandbrief.

Depfa is a financial services company based in Munich.

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