'equiNotes' mezzanine programme successfully placed on the capital market by IKB and Deutsche Bank
The securities have a maturity of seven years. Interest rates on the individual tranches range from 31 to 220 basis points above 3-month Euribor. Deutsche Bank, IKB Private Equity, Sal. Oppenheim and a further investor have underwritten the subordinated tranche of € 77.8 million. The tranches in note form were placed by Deutsche Bank as lead manager and bookrunner; IKB Deutsche Industriebank was co-manager. IKB Private Equity monitors the development of the portfolio and advises equiNotes Management GmbH.
equiNotes was the largest mezzanine transaction in 2005 in the German-speaking region. In the light of its success, Deutsche Bank and IKB are already preparing a second equiNotes programme for the coming year.
The placement of the securities completed the securitization of the equiNotes mezzanine programme under which 57 small and medium-sized enterprises received financings of between € 2.5 million and € 15 million. Most (95%) of these firms have annual sales ranging from € 50 million to € 500 million. The equiNotes portfolio is broadly dispersed both regionally and sectorally. Twenty-one different industries are represented, with the focus on the automotive, foodstuffs, chemicals and mechanical engineering sectors.
equiNotes is mezzanine capital in the form of quasi-equity participatory notes. In economic terms, mezzanine capital makes a long-term financing contribution during its maturity, improves the borrower's rating and enlarges its financing scope. This is because the capital is subordinated and also features interest deferral and loss participation.
For further information, please call:
IKB Deutsche Industriebank
Dr. Jörg Chittka
Tel.: +49 (0) 211 8221 4349
Fax: +49 (0) 211 8221 2349
Dr. Ronald Weichert
Tel.: +49 (0) 69 910 38664
Fax: +49 (0) 69 910 33422
IKB Deutsche Industriebank
IKB Deutsche Industriebank AG is the leading specialist in the field of long-term finance in Germany. Clients are innovative and strong growth medium-sized enterprises, investors in commercial real estate, as well as foreign companies and project partners. With total assets of € 40 billion and 1,500 employees at 11 locations at home and abroad, the bank itself has a distinctly Mittelstand character. IKB is listed on the MDAX, ISIN: DE 0008063306. With a 38 % stake, its largest shareholder is the KfW bank group, making IKB part of a strategic partnership.
With Euro 972 billion in assets and 63,751 employees, Deutsche Bank offers unparalleled financial services in 74 countries throughout the world. Deutsche Bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
Deutsche Bank ranks among the global leaders in corporate banking and securities, transaction banking, asset management, and private wealth management, and has a significant private and business banking franchise in Germany and other selected countries in Continental Europe.