Troubled German property financier Hypo Real Estate has been granted a further EUR 10 bn in loan guarantees by the German bank rescue fund Soffin. The guarantee expires on 12 June 2009.
Troubled German property financier Hypo Real Estate has been granted a further EUR 10 bn in loan guarantees by the German bank rescue fund Soffin. The guarantee expires on 12 June 2009.
Hypo Real Estate has repeatedly been granted guarantees by Soffin since the bank was thrown a EUR 50 bn lifeline by a consortium of the German government and financial institutions in October last year. Hypo Real Estate said it will use the guarantee framework to collateralise debt securities which are due for repayment by 14 May 2009.
Hypo is to pay Soffin a pro-rata commitment commission of 0.1% on the undrawn portion of the framework guarantee, and a 0.5% annual fee on guarantees which have been drawn upon. The aggregate guarantee framework provided by Soffin to the group amounts to EUR 52 bn.
The bank is still in negotiations with Soffin regarding 'more extensive and longer-term liquidity measures'.
