February 9, 2006

IKB and Deutsche Bank with second mezzanine capital program; Target group includes small-sized companies

Following the successful placement of the first portfolio on the capital market, IKB Deutsche Industriebank and Deutsche Bank are currently issuing their second equiNotes program. The target group comprises small and mid-cap firms seeking long-term financing with equity capital features for their continued growth. Whereas the first equiNotes program last year was addressed to companies with revenues of at least € 50 million, in this newly issued program, companies with an annual turnover of at least € 25 million can participate subject to specific conditions in equiNotes II.

With equiNotes, companies can raise mezzanine capital in the form of participatory rights, which can be financially reported under equity capital. Thus, equiNotes improves credit ratings, expands the range of financing options and provides an effective contribution to closing the equity funding gap in mid-cap financing. Depending on the structure, this capital is not only subordinated, but it is also equipped with interest deferrals and loss participation.

IKB and Deutsche Bank will be offering equiNotes II in tranches of € 2 million to € 15 million. The total portfolio volume is intended to be at least € 300 million. equiNotes offers SMEs long-term capital at very interesting conditions. Depending on the credit rating of the company seeking finance, interest rates currently begin at 6.25 percent.

Jürgen Fitschen, member of Deutsche Bank's Group Executive Committee, and Dr. Markus Guthoff, member of IKB's Board of Managing Directors, announced: "With the first equiNotes program, we made € 370 million in financing with equity capital features available to companies. The sustained demand led us to develop the successful concept further with equiNotes II."

Deutsche Bank and IKB will bundle the volume raised by the companies into a portfolio that can be securitized and placed on the capital markets. With equiNotes II, domestic and foreign investors will also have an attractive way to invest in internationally successful German mid-caps through the securitized portfolio.


For more information, please call:

IKB Deutsche Industriebank   

Dr. Jörg Chittka     
Tel.: +49 (0) 211 8221 4349   
Fax: +49 (0) 211 8221 2349  
e-mail: joerg.chittka@ikb.de   


Deutsche Bank

Dr. Ronald Weichert
Tel.: +49 (0) 69 910 38664
Fax: +49 (0) 69 910 33422
e-mail: ronald.weichert@db.com



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.



Deutsche Bank

With Euro 993 billion in assets and 63,427 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.