CMS Hasche Sigle advises on SoFFin's capital support for Aareal Bank

A CMS Hasche Sigle team headed by partner Dr Hubertus Kolster represented the main shareholder of the bank (37%), Aareal Holding, in connection with the equity contribution by the German Financial Market Stabilization Fund (SoFFin) to Aareal Bank. The shareholding interests of several insurance companies in the bank are bundled in Aareal Holding. Aareal Bank mainly operates in the sector of property project financing.

Aareal Bank will receive a capital contribution in the amount of €525 million from the German Financial Market Stabilization Fund. Aareal Bank is the second bank to make use of the governmental financial aid. Furthermore, the German government will issue guarantees for debt securities of up to four billion euro to the institution. Several banks have already made use of such guarantees. At the moment, it is difficult for banks to obtain equity capital on the free market. Otherwise, the institution is in best condition, which is also shown by the positive 2008 annual results.

CMS Hasche Sigle Advisers:
Dr Hubertus Kolster; Lead Partner, Corporate
Katharina Reuther; Corporate

Contact:
Dr Hubertus Kolster
Tel.: +49 (0)69 71701-244
E-mail: Hubertus.Kolster@cms-hs.com