Deutsche Pfandbriefbank (PBB), the European commercial real estate bank spun out of the State-rescued Hypo Real Estate, has secured approval from the German Financial Markets Stabilisation Agency (FMSA) to return to the private sector through an initial public offering (IPO) in July.
The FMSA – the German State fund which manages Hypo Real Estate Holding AG (HRE), PBB’s sole shareholder – and the Interministerial Steering Committee will suspend concurrent attempts to sell PBB through a tender process, in favour of an IPO.
The planned flotation will see a minimum stake of just above three-quarters of PBB’s share capital placed – 75.1% – while the Federal Republic of Germany, indirectly via HRE, will retain a minimum 20% stake in PBB for a two-year period based on a respective lock up commitment.
PBB will redeem FMS’s €1bn silent participation within the framework of the IPO.
Citigroup Global Markets and Deutsche Bank AG have been mandated as joint global co-ordinators and joint bookrunners for PBB’s flotation.
JP Morgan Securities, Commerzbank AG and Joh. Berenberg, Gossler