FMS to buy back numerous Depfa issues via program for one more year

By Susanna Moon

Chicago, June 5 – FMS Wertmanagement AoR said it will repurchase Depfa covered bonds until June 30, 2019 under its wind-down strategy.

FMS said on Nov. 13 that it plans to repurchase benchmark notes and private placement notes from time to time in the open market or through private transactions under the program managed by Deutsche Bank AG, London Branch.

Under the program, the notes are purchased at a price to be determined between FMS-WM and the noteholder plus accrued interest to but excluding the settlement date, according to a previous announcement.

FMS has purchased about €8 billion of covered bonds and sold the majority back to the issuers, according to a company update on Tuesday.

At the same time, the company said it has acquired assets from cover pools via two asset liability management transactions in November 2016 and November 2017, which helped slash Depfa Group's total balance sheet to €18.6 billion by Dec. 31, 2017.

As of March 31, the outstanding amount of covered bonds had fallen to €2.76 billion of ACS liabilities and €93.1 million of LdG liabilities, the release noted.

Since last November, FMS said it has continued to purchase covered bonds issued by the Depfa Group in the secondary market and holds about €880 million equivalent.

Based on the progress of the wind-down of Depfa Group, FMS said it is evaluating the benefits of selling the Depfa Group or parts of it as well as the benefits of reducing the amount of capital in the group and its subsidiaries.

“By swiftly reducing total assets and improving all regulatory ratios, we have paved the way to realize the Depfa Group's potential value faster than originally planned,” Stephan Winkelmeier, spokesman, said in a company press release.

The benchmark notes are as follows:

• Depfa ACS Bank’ €448.7 million of outstanding €1 billion 4 7/8% notes due May 2019;

• Depfa Pfandbrief Bank International SA’s CHF 92,005,000 of CHF 400 million 3 1/8% notes due August 2020;

• Depfa ACS’ C$2,371,000 of outstanding C$200 million 5Ό% notes due March 2025;

• Depfa ACS’ CHF 4.36 million of outstanding CHF 300 million 3Ό% notes due July 2031;

• Depfa ACS’ C$550,000 of outstanding C$350 million 4.9% notes due August 2035; and

• Depfa ACS’ $27.39 million of outstanding $1.25 billion 5 1/8% notes due March 2037.

The following private placement notes issued by Depfa ACS also are covered by the purchase plan:

• €25 million CMS-linked notes due May 2020;

• €25 million CMS-linked notes due May 2020;

• €4 million CMS-linked notes due June 2020;

• €10 million CMS-linked notes due June 2020;

• NOK 300 million 4.45% notes due November 2020;

• SEK 421 million inflation-linked notes due December 2020;

• HUF 3.75 billion 0% notes due February 2021;

• €5 million structured notes due February 2021;

• €20 million structured notes due June 2021;

• €12 million CMS-linked notes due July 2021;

• €12 million CMS-linked notes due May 2022;

• €100 million CMS-linked notes due June 2022;

• €5 million structured notes due February 2024;

• €10 million CMS-linked notes due April 2025;

• NOK 120 million 4.27% notes due November 2025;

• €15 million structured notes due July 2031;

• €15 million structured notes due July 2036; and

• €13.5 million 0% notes due July 2037.

For questions call Deutsche Bank at +44 20 7545 8011.

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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