EU Commission concludes HSH Nordbank’s state aid proceedings

Hamburg/Kiel, May 2, 2016 - The European Commission has concluded its state aid proceedings for HSH Nordbank. A resolution in this regard was adopted by the members of the Commission today.

As a result, the replenishment of the guarantee from EUR 7 billion to EUR 10 billion and the sale of non-performing loans totalling EUR 8.2 billion at market price have now formally been approved. A major proportion of the premiums payable for the guarantee will in the future be borne by the holding company that is to be established, and no longer by the operating unit.

The final decision follows on from the agreement reached between the Commission and the Federal Republic of Germany in March 2016 and forms the basis for a successful restructuring of HSH Nordbank, which will also provide for a change in ownership.

The Commission's resolution gives details of the decision and brings new challenges for HSH Nordbank. Hence the operational part of the Bank will have to make a one-off payment totalling EUR 260 million to the holding company in which the owner's shares are pooled. The holding company will receive around EUR 50 million to cover its operating costs and EUR 210 million for the premium obligations it will assume in the course of the selling process. These payments will be fully included as expenses in the 2015 annual financial statements, which HSH Nordbank will publish on 9 June 2016.

The EU Commission has furthermore specified the timing of HSH Nordbank's privatisation as it needs to be completed by the end of February 2018. This deadline may, with the Commission’s approval, be extended by six months should implementation be delayed for reasons that are outside the federal states' scope. Following the change in ownership, Hamburg and Schleswig-Holstein may retain a combined stake of 25 percent for up to four years.

"The formal decision offers us final clarity. The timing is ambitious and the Commission had another very close look when working out the details. This has not made the change in ownership any easier. We will nevertheless do all we can to enter the selling process swiftly with a Bank that is well-positioned", said Constantin von Oesterreich, Chairman of the Management Board of HSH Nordbank.

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.