Bond buyback to strengthen the core Tier 1 capital successfully completed
Hamburg/Kiel, February 17, 2012 - The invitation to buy back two HSH Nordbank subordinated bonds has been well received by the market.
By the time the tender was closed yesterday, Thursday, investors had offered the Bank bonds with a face value of approx. EUR 820 million for purchase. The Bank is thus buying back around 50 percent of the total nominal amount of these bonds. The settlement date is 21 February 2012.
The buyback price for both bonds is 68 percent. The difference between the nominal amount and the buyback price offered for the bonds will generate non-recurring gross income of approx. EUR 260 million for the Bank, thereby resulting in a corresponding strengthening of its core Tier 1 capital. The Bank is thus improving its capital base from its own resources with a view to the new regulatory requirements of Basel III.
The offer related to the following bonds:
The joint dealer managers for the transaction were BNP Paribas, HSH Nordbank AG and Nomura International plc. Lucid Issuer Services Limited acted as the tender agent. Linklaters LLP, Frankfurt am Main, was HSH Nordbank's legal advisor.
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