OREANDA-NEWS. May 17, 2012. Dexia Kommunalbank Deutschland (DKD), a subsidiary of Dexia Credit Local, announced today the results of its buy back offer launched on April 23, 2012 on 10 publicly distributed Oeffentliche Pfandbriefe (Public Sector Covered Bonds) totaling EUR 10.065 billion in nominal value. Bonds tendered reached EUR 2 579 865 000 in nominal value, translating into a 25.63% success rate. DKD had initially capped the offer at a maximum EUR 3.0 billion.

This offer was motivated by the possibility for DKD to adjust more finely the asset and liability redemption profile of the Pfandbriefe versus the public sector assets held by DKD given the current absence of new asset origination. The buy back will reduce the needs for over-collateral and, as a result, reduce the needs for senior unsecured funding of the bank. The repurchase transaction is neutral to DKD from a liquidity standpoint taking into account the bank's 2012 cash flows and over-collateral reduction.

With this transaction investors benefitted from a window of liquidity allowing them to trade the concerned DKD Pfandbriefe against cash on publicly disclosed terms.