COMMISSION DECISION
of 21 October 2008
on State aid measure C 10/08 (ex NN 7/08) implemented by Germany for the restructuring of IKB Deutsche Industriebank AG
(notified under document C(2008) 6022)
(Only the German text is authentic)
(Text with EEA relevance)
(2009/775/EC)
1.
PROCEDURE
2.
DESCRIPTION
2.1.
The beneficiary
(EUR million) |
||
|
Operating profit |
Credit volume |
Corporate banking |
92,8 |
16 065 |
Structured financing |
90,6 |
4 889 |
Real estate |
23,2 |
7 870 |
Portfolio investment |
11,3 |
18 260 |
Central/consolidation |
– 103 |
4 114 |
Total |
114,5 |
51 198 |
2.2.
The reasons for IKB’s difficulties
2.3.
The measures
(a)
First measure — risk shield
(b)
The second measure — ancillary risk shield
(c)
The third measure — capital injection and KfW loan
(d)
Liquidity provision
2.4.
Increased losses during the restructuring
(EUR million) |
|||||||||||
|
Nominal value restated 03/2007 |
Currency adjustments |
Sales (nom. value of assets) |
Losses on sales (nom. value — sales price) |
Losses realised (nom. value of assets) |
Nominal value 08/2008 (IKB or KfW) |
Depreciations |
Book value 08/2008 (IFRS) |
Total losses (realised + expected) |
||
Rhineland |
11,5 |
3,7 |
[< 1] |
— |
[< 0,5] |
[> 5] (KfW) |
[> 3] |
[< 2] |
[> 3,5] |
||
Havenrock |
(1,2) |
— |
— |
— |
1,2 |
0 |
0 |
0 |
1,2 |
||
Total on-balance-sheet |
6,81 |
0,5 |
[< 2] |
[< 0,5] |
[< 0,75] |
[> 5] (IKB) |
[> 1,5] |
[> 2] |
[> 2] |
||
|
not existing |
|
|
|
|
[…] (IKB) |
[…] |
[> 1] |
[…] |
||
|
not existing |
|
|
|
|
[…] (IKB) |
[…] |
[> 1] |
[…] |
||
|
6,81 |
0,5 |
[< 2] |
[< 0,5] |
[> 0,5] |
0 |
0 |
0 |
[> 0,5] |
||
Total (1-3) |
18,3 |
0,5 |
[< 2] |
[< 0,5] |
[> 1,7] |
[> 7,5] |
[> 4,5] |
[> 3,0] |
[> 6,0] |
2.5.
The sale process
2.6.
Summary of support measures
No |
Measure |
Nominal value (in EUR billion) |
1. |
Risk shield (Rhineland EUR 5,8 billion, Havenrock EUR 0,85 billion, and on-balance-sheet assets EUR 1 billion) |
approx. 7,65 (of which 1,00 from banking associations) |
2. |
Ancillary risk shield (EUR 350 million additional loss coverage — Havenrock) |
0,35 (of which 0,20 from banking associations) |
3. |
Capital increase and waived loan (coverage of depreciation of balance-sheet assets) |
2,30 (of which 0,30 from banking associations) |
4. |
Liquidity facility |
[> 2,5] |
5. |
Sale of IKB shares |
[…] |
5.1. |
Senior loan refinancing SIP 2 |
0,78 |
5.2. |
Transfer SIP 1 to KfW |
1,00 |
5.3. |
Indemnity clause |
[…] |
Total |
[> 15] |
2.7.
The restructuring plan
(EUR billion) |
|||
No |
Measure |
Assets at 31.3.2007 |
Assets at 30.9.2011 |
|
Remaining assets in core business |
[< 35,0] |
[< 35,0] |
For viability |
|||
|
Exit portfolio investments |
18,30 |
0,00 |
For compensation |
|||
1. |
Real estate financing |
4,90 |
[< 3,0] |
2. |
IKB International SA, Luxemburg |
[< 10,0] |
0,00 |
3. |
IKB Capital Corporation, New York |
[< 2,0] |
0,00 |
4. |
Amsterdam branch of IKB AG |
[< 0,5] |
0,00 |
5. |
Divestment of non-strategic assets |
1,70 |
0,00 |
6. |
Divestment of 50 % share in Movesta |
[< 0,5] |
0,00 |
|
Subtotal: outstanding compensatory measures (subtotal: compensatory measures implemented) |
[> 15,0] (0) |
[< 3,0] [> 12,0] |
|
New development of certain business formerly established in Luxembourg |
— |
[> 2,0] |
|
Total balance sheet without growth |
63,50 |
[…] |
|
Committed maximum balance sheet |
33,50 |
33,50 |
|
Remaining margin for new business |
— |
[…] |
3.
THE FORMAL INVESTIGATION PROCEDURE
4.
COMMENTS FROM GERMANY FOLLOWING THE OPENING DECISION
5.
ASSESSMENT
5.1.
Existence of aid
(a)
The risk shield and capital contribution measures (first three measures)
(b)
The liquidity facility
(c)
The sale of IKB
(d)
Summary of State aid
No |
Measure |
EUR million |
Aid amount involved (in EUR million) |
1 |
1st risk shield (Rhineland EUR 5,8 billion, Havenrock EUR 0,85 billion and on-balance-sheet assets EUR 1 billion) |
|
6 650 |
2 |
2nd risk shield (EUR 350 million additional loss coverage — Havenrock) |
|
200 |
3 |
Capital increase and waived loan (coverage of depreciation on-balance-sheet assets) |
|
2 000 |
4 |
Liquidity facility to IKB (before sale) |
|
[…] |
5 |
Sale of IKB: |
|
|
5a. |
Price of IKB shares |
[…] |
|
5b. |
Liquidity facility to IKB (after sale) |
[…] |
|
5c. |
Senior loan refinancing SIP 2 |
[…] |
|
5d. |
Transfer SIP 1 to KfW |
[…] |
|
5e. |
Indemnity clause |
[…] |
|
|
Sale of IKB net |
|
[> 250] |
Total |
[< 10 000] |
5.2.
Compatibility with the common market under Article 87(3)(b): aid to remedy a serious disturbance in the economy of a Member State
5.3.
Compatibility with the common market under Article 87(3)(c) — restructuring aid
(a)
Firm in difficulty
(b)
Restoration of long-term viability
(c)
Aid limited to the minimum — own contribution
(EUR billion) |
||
Measure |
Origin of funds |
Value |
Risk shield |
Banking associations |
1,50 |
Use of company capital reserves and hybrid capital |
IKB |
[> 1,5] |
Capital contributions SIP II |
Lone Star |
[> 0,25] |
Subtotal |
[> 3,25] |
|
Divestments portfolio investments |
Market |
[…] |
Divestments of real-estate business |
Market |
[…] |
Divestments of IKB Int. Luxembourg |
Market |
[…] |
Divestments of IKB CC New York |
Market |
[…] |
Divestments of IKB Amsterdam |
Market |
[…] |
Divestments of Movesta |
Market |
[…] |
Divestments of non-strategic assets |
Market |
[…] |
Subtotal: divestment compensatory measures |
[> 5,0] (at least […]) |