State guarantee drops to 7 billion euros
Hamburg/Kiel, September 2, 2011 - As announced, HSH Nordbank has agreed with the states of Hamburg and Schleswig-Holstein on a further reduction of the second-loss guarantee.
Effective 6 September 2011, the guarantee facility will come down by a further one billion to then EUR 7 billion. The Bank will thus already have executed the third partial reduction of the second-loss guarantee this year.
In reducing the guarantee umbrella by then a total of three billion euros, the Bank's expenditure with regard to the provision of the guarantee will decline by around EUR 120 million to around EUR 280 million p.a. Since the second-loss guarantee has been in place HSH Nordbank has paid a total premium of about EUR 900 million (as of 30 June 2011) to the states of Hamburg and Schleswig-Holstein.
The parliaments of the federal states of Hamburg and Schleswig-Holstein had decided, with effect from the second quarter of 2009, to extend a ten billion euro second-loss guarantee to HSH Nordbank. In return HSH Nordbank pays a premium of four percent p. a. of the outstanding guarantee amount to the federal states.
The information contained in this press release does not constitute an offer for the sale of any type of Hamburg Commercial Bank AG securities. Securities of Hamburg Commercial Bank AG may not be sold in the United States without registration pursuant to US securities legislation, unless such a sale takes place on the basis of relevant exceptional provisions.
This press information can contain forward-looking statements. These statements are based on our beliefs and assumptions, on information currently available to us which we consider reliable. Forward-looking statements include all statements which are not historical facts, including information concerning future growth prospects and future economic developments.
Such forward-looking statements are based on assumptions relating to future events and are subject to uncertainties, risks and other factors, a large number we cannot influence. Thus actual events can differ considerably from the forward-looking statements made. We make no warranty for the correctness or completeness of these statements or the actual occurrence of the statements made. Furthermore, we assume no obligation for updating the forward-looking statements after this information has been published.