Dublin-based public sector financier Depfa Bank, a member of the troubled Hypo Real Estate Group, has announced that its Tier 1 issuing vehicle, Depfa Funding IV, will not make payments on its EUR 500 mln preferred securities on the next distribution payment date scheduled 21 March 2009.
Dublin-based public sector financier Depfa Bank, a member of the troubled Hypo Real Estate Group, has announced that its Tier 1 issuing vehicle, Depfa Funding IV, will not make payments on its EUR 500 mln preferred securities on the next distribution payment date scheduled 21 March 2009.
No decision has been made on Depfa's other Tier 1 instruments, the bank said.
Preferred securities are a particular class of subordinated Tier 1 instruments. The conditions for coupon payments are set out in the terms and conditions of each issue. Coupon payments on these instruments are at the discretion of the board of directors of Depfa Bank. Due to its current situation, the company used this discretion with respect to Depfa Funding IV, the bank added.
