Pfandbriefbank IPO

Listing a Lehman Victim

PBB dpa
It's time to fly for Pfandbriefbank.
  • Why it matters

    Why it matters

    Germany still has not cleaned up all the victims of the 2008 credit crisis, and could still incur further losses.

  • Facts

    Facts

    • Germany bailed out property lender Hypo Real Estate in 2008, and created a viable part called Pfandbriefbank with assets worth €75 billion or $83 billion.
    • Pfandbriefbank funds commercial real estate and public investment projects.
    • Germany plans to sell up to 80 percent of Pfandbriefbank shares between €10.75 to €12.75 per share, raising up to €1.38 billion and valuing the bank at up to €1.72 billion.
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Germany is pressing ahead with the initial public offering of Deutsche Pfandbriefbank, or PBB, a real estate and public investment lender which is part of bailed out Hypo Real Estate group.

“Despite Greece and other issues, the current market environment is relatively stable,” Pfandbriefbank co-chief executive Andreas Arndt was quoted as saying by Reuters on Wednesday, when the bank announced details of the listing.

Some German companies, including fashion trader CBR and real estate firm Ado Properties have postponed plans to list due to the falling stock markets, especially in China, increased price volatility and uncertainty due to the possible exit of Greece from the euro zone.

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