Commercial real estate lender Corealcredit Bank said on Monday that it has repaid all its bonds guaranteed by the German Financial Market Stabilisation Fund (SoFFin) ahead of schedule. The remaining guarantee funding provided by SoFFin was also returned in full, the bank added, making it the first German bank to make a repayment following the outbreak of the credit crisis.
Commercial real estate lender Corealcredit Bank said on Monday that it has repaid all its bonds guaranteed by the German Financial Market Stabilisation Fund (SoFFin) ahead of schedule. The remaining guarantee funding provided by SoFFin was also returned in full, the bank added, making it the first German bank to make a repayment following the outbreak of the credit crisis.
'The consistent alignment of business structure towards sustainable income puts us in a position to return SoFFin guarantee funding some time before the date agreed,' said Chairman Claus Nolting. 'We have also used the time to secure more favourable and longer-term refinancing sources. This will result in a slight improvement to our profit and loss account in 2011.'
Against the backdrop of a global financial crisis, Corealcredit took the precaution in mid-2009 of securing SoFFin guarantee funding in the amount of EUR 500 mln in order to improve its liquidity situation. This guarantee was used to issue bonds with a value of over EUR 500 mln by year-end 2009. The regular maturities were between June and November 2011.
