BayernLB set to pay back another EUR 1.3bn of silent participations to the Free State of Bavaria

Munich – Following the adoption of its 2015 full-year financial statements this April, BayernLB intends to pay back another EUR 1.3bn of silent participations to the Free State of Bavaria. The European Central Bank has already approved this move. The planned repayment is still subject to the final adoption of the 2015 financial statements by BayernLB’s Supervisory Board on 14 April 2016.

After the planned repayment, BayernLB will have returned nearly EUR 4.4bn to the Free State of Bavaria, of which approximately EUR 4.0bn counts towards the state aid repayment requirement. BayernLB will continue to strive to repay the remaining outstanding amount of EUR 1bn before the 2019 deadline set in the agreement ending the EU state aid proceedings. As before, all such payments to the Free State of Bavaria are, of course, subject to approval by banking supervisory authorities.

BayernLB’s “fully loaded” CET 1 capital ratio was a solid 11.1 percent as at 30 September 2015. As this ratio does not include the Free State of Bavaria’s silent partner contributions, it will not be lowered by the EUR 1.3bn repayment.

The impact on BayernLB’s hybrid instruments is as follows: The silent partner contributions and profit participation certificates will be fully replenished from 81.2 percent to 100.0 percent. In addition, deferred interest payments on the profit participation certificates from 2013 and 2014 will be paid as will interest due for 2015. The capital repayment to the Free State of Bavaria will trigger the so-called “dividend pusher” for the Trust Preferred Securities of BayernLB Capital Trust I.

Additional information, such as about dividend payments on silent partner contri-butions, will be presented at the 2015 Annual Report Press Conference on 17 March 2016.