IKB Deutsche Industriebank AG and Seer Capital Management LP have closed their first common fund: Valin Funds Mittelstand Mezzanine 1 (MM1). The fund has a target capitalisation of € 300 million, and as of the initial closing has a capitalisation of € 105 million. The fund will primarily invest in mezzanine loans to German Mittelstand companies with annual sales above € 50 million.
The IKB Group (IKB) has ended its purchase programme for the listed issues of IKB Funding Trust I, ISIN DE0008592759, and IKB Funding Trust II, ISIN XS0194701487 on 30 October 2012.
The IKB Group (IKB) is – for the last time – extending the acceptance period for the invitation to holders of the listed issues IKB Funding Trust I, ISIN DE0008592759, and IKB Funding Trust II, ISIN XS0194701487, to submit offers for sale until 30 October 2012.
The IKB Group (IKB) is extending the acceptance period for the invitation to holders of the listed issues IKB Funding Trust I, ISIN DE0008592759, and IKB Funding Trust II, ISIN XS0194701487, to submit offers for sale until 2 October 2012. This is subject to change.
IKB Deutsche Industriebank today repaid the SoFFin-guaranteed bond (ISIN DE000A0SMN60) in the amountof € 2.0 billion and reduced the guarantee volume by the same amount.
The IKB Group (IKB) is today inviting holders of the listed Trust Preferred Securities issued by IKB Funding Trust I, ISIN DE0008592759, and IKB Funding Trust II, ISIN XS0194701487, to submit offers for sale.
IKB Deutsche Industriebank AG has returned further SoFFin guarantees in the amount of € 250 million ahead of schedule due to its excess liquidity. The amount returned relates to the bond ISIN DE000A0SMPA3 (scheduled to mature on 2 February 2015, FRN 3-month Euribor).
With approval of the Supervisory Board, the Board of Managing Directors of IKB Deutsche Industriebank AG decided to initiate a stock market segment change of all of its securities from the Regulated Market to quality segments of the Open Market.
The interim announcement covers the period from the start of the financial year on 1 April 2011 to 31 December 2011.
At € 312 million, IKB Deutsche Industriebank recorded a higher consolidated net loss in the first half of the 2011/12 financial year (1 April to 30 September 2011) than in the corresponding period of the previous year (consolidated net loss of € 246 million). This was primarily due to the intensification of the financial crisis, which led in particular to a pronoun-ced widening of the risk premiums for almost all state debtors in the eurozone. Adjusted for extraordinary factors, a consolidated net profit of € 15 million was generated in the period under review (previous year: consolidated net loss of € 81 million).
Today a settlement agreement was signed by Crédit Agricole Corporate and Invest-ment Bank (“CA CIB”, formerly Calyon), Financial Guaranty Insurance Company (“FGIC”), IKB Deutsche Industriebank Aktiengesellschaft (“IKB”) and others.
As in the same period of the previous year, the first quarter of the 2011/12 financial year was dominated by the government debt crisis in Europe. In the eurozone, there was uncertainly due to the potential for further rescue measures for Greece in particular, as well as the risk of potential contamination for major euro member states, leading to a further increase in the risk premiums for governments and banks alike.
IKB Deutsche Industriebank AG has returned additional SoFFin guarantees totalling € 1.3 billion early. The guarantees returned comprise a volume of € 0.6 billion in the bond ISIN DE000A0SMN03 (maturing on 27 January 2012, 2.875%) and a volume of € 0.7 billion in the bond ISIN DE000A0SMN45 (maturing on 13 March 2012, 2.625%). Thus, current SoFFin guarantees for IKB amount to € 7.3 billion.
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The Board of Directors of IKB International S.A. has prepared the Bank’s annual financial statements for the 2009/10 financial year ended 31 March 2010 and submitted them to its General Meeting for approval. The preparation of the annual financial statements means that the conditions for calculating the loss participation of the silent partner contribution of IKB S.A. that ended on 31 March 2010 and the silent partner contribution due for repayment on 17 November 2010 have now been defined. These are explained below.
At the request of IKB Deutsche Industriebank AG on 4 February 2010, the Special Fund for the Stabilisation of the Financial Market (Sonderfonds Finanzmarktstabilisierung – SoFFin) today ruled to reduce IKB’s guarantee from a total of € 12 billion to € 10 billion effective from 17 February 2010. IKB had filed for the reduction as the Bank’s liquidity situation has now stabilised.
IKB Deutsche Industriebank AG’s Board of Managing Directors resolved on
1 February 2010 to reverse a positive effect of € 56 million which had previously been shown in the fair-value result as of 30 September 2009.
The Higher District Court in Düsseldorf has dismissed IKB Deutsche Industriebank AG´s appeal against the decision of the District Court in Düsseldorf. The District Court had decided at the request of shareholders to appoint a special auditor to examine whether members of the Board of Managing Directors or the Supervisory Board at IKB were involved in violations of duty in connection with the causes of the crisis at IKB.
The consolidated net loss (after taxes) of IKB Deutsche Industriebank AG in the first half of FY 2009/10 (1 April 2009 to 30 September 2009) amounted to € -398 million (H1 2008/09: consolidated net profit of € 240 million). The loss is mainly due to the negative fair value result as the fair value gains on the assets side of the balance sheet were significantly exceeded by the fair value losses on the equity and liabilities side. Loan loss provisions also increased as anticipated. Significant gains were generated on the remeasurement of compensation agreements, some profit-participation certificates and silent partnership contributions. These were reported under other operating income.
IKB Deutsche Industriebank AG is forecasting a consolidated net loss of € 398 million (IFRS) for the first half of the 2009/10 financial year (1 April 2009 to 30 September 2009). The loss is mainly due to the negative fair value result as the fair value gains on the assets side of the balance sheet were significantly exceeded by the fair value losses on the equity and liabilities side. Loan loss provisions also increased as anticipated. Significant gains were generated on the remeasurement of compensation agreements, some profit-participation certificates and silent partnership contributions. These gains are shown under Net other operating income.
The District Court in Düsseldorf has decided at the request of shareholders to appoint a special auditor to examine whether members of the Board of Managing Directors or the Supervisory Board at IKB were involved in violations of duty in connection with the causes of the crisis at IKB.
CALYON has instigated proceedings against IKB in the High Court of Justice in London and claims inter alia damages in excess of US$ 1.675 billion. The Particulars of Claim were served on IKB on 24 August 2009 in the afternoon. IKB sees the action which includes an independent damages claim in connection with the proceedings brought by U.S. monoliner FGIC in March 2008.
The board of directors (Verwaltungsrat) of IKB International S.A. finalised the preparation of the Luxembourg Bank’s annual financial statements for the 2008/09 financial year which ended on 31 March 2009 and forwarded them to the Annual General Meeting of Shareholders (Generalversammlung) for approval. Based on the financial statements, the loss participation of the silent partnership certificates (Stille Beteiligungen) in IKB International S.A. has been calculated, as specified below.
IKB’s Board of Managing Directors has prepared the preliminary figures for the financial year 2008/09 (1 April 2008 to 31 March 2009) for IKB AG pursuant to the German Commercial Code (HGB). All the figures stated below have not yet been formally stated by the Board of Managing Directors or audited and remain preliminary until approved by the Supervisory Board.
From today’s perspective, the 2008/09 annual result (1 April 2008 to 31 March 2009) of IKB AG in line with the German Commercial Code (HGB) will be in the range of minus € 600 million. After loss participation from profit participation certificates and silent partnerships the balance sheet deficit will be about minus € 400 million. The current worsening of the results expectation is due to resolutions on a further reduction of risks on the IKB balance sheet and a reassessment of the necessary provisions for possible loan losses for the whole financial year.
In its meeting held today, the Supervisory Board of IKB Deutsche Industriebank appointed Dr. Michael H. Wiedmann (44), previously Managing Director of investment banking at Morgan Stanley in Frankfurt, to the IKB Board of Managing Directors from 1 March 2009. Wiedmann succeeds Dr. Andreas Leimbach, who departed from the Bank on 1 February 2009.
In the first six months of the financial year 2008/09 (1 April to 30 September 2008), the consolidated results of IKB Deutsche Industriebank amounted to € 250 million (H1 2007/08: € 965 million).
The Special Fund for the Stabilization of the Financial Market (Sonderfonds Finanzmarktstabilisierung – SoFFin) authorises guarantees to IKB in an amount of up to € 5 billion to guarantee the repayment of bonds to be issued by IKB in the future. The guarantees have been authorised by the EU Commission today.
The Board of Managing Directors of IKB Deutsche Industriebank AG –with the consent of the Supervisory Board – today resolved to issue subordinated convertible bonds in an amount of up to € 123.75 million. IKB expects that Lone Star will fully subscribe the portion of convertible bonds which will not be subscribed by the shareholders of IKB by exercising their pre-emptive rights. The purchase of the convertible bonds forms part of the announced increase in the own funds of IKB by Lone Star in an aggregate amount of € 225 million.
The IFRS group interim financial statements of IKB Deutsche Industriebank AG for the 2nd Quarter 2008/09 (1 July until 30 September 2008) will include positive valuation effects of presumably € 1.0 billion in total based on preliminary calculations. In the first Quarter 2008/09 similar valuation effects resulted in a loss of € 0.5 billion; thus, for the first half year 2008/09 the valuation effect is + € 0.5 billion.
Today the Supervisory Board of IKB elected Mr Bruno Scherrer (39), Head of European Investments and Senior Managing Director of the US Investor Lone Star, Chairman of the Supervisory Board. Moreover, the Supervisory Board appointed Mr Hans Jörg Schüttler (53), formerly CEO Asia and until 2006 CEO Germany of the Investment Bank Morgan Stanley, new Chairman of IKB’s Board of Managing Directors with effect of 1 November 2008.