Contracts for Ring-Fencing the Main Portfolio Signed
Nominal volume of approx. € 71 billion spun off to the EAA with retroactive effect from January 1, 2010
WestLB´s owners and governing bodies have approved contracts for ring-fencing the main portfolio of non-essential strategic activities with a volume of approximately € 71 billion. The portfolio was spun off to the Erste Abwicklungsanstalt (EAA) on April 30, 2010 with retroactive effect from January 1, 2010. The necessary approvals of the responsible authorities for the transaction have been obtained. In a first step, a sub-portfolio of roughly € 6 billion was transferred to the EAA in December 2009. The aggregate transferred portfolio thus amounts to approximately € 77 billion. As a result of active reduction measures, redemptions and currency movements, the transferred volume has decreased significantly compared with the original volume of € 85 billion. The EAA will receive total capital of approximately € 3 billion from WestLB and guarantees of € 1 billion from the owners.
Dietrich Voigtländer, Chairman of the Managing Board, said: “The decision of the owners and governing bodies marks an important milestone in the strategic realignment of WestLB. The Bank has now systematically put into effect the plans it has been rigorously pursuing since the end of 2008. I would like to express my sincere thanks to the owners, SoFFin and, of course, our employees. We can now position the strong and efficient core bank in the upcoming consolidation process.”
SoFFin is taking a silent participation of € 3 billion in the core bank. WestLB received the first tranche of € 672 million from SoFFin in December 2009. The second tranche of € 1.5 billion was made available to the Bank at the beginning of January 2010. WestLB received the third and final tranche on April 30, 2010.