Today, the European Commission approved a €3 billion recapitalization and €10 billion risk shield for the Germany's HSH Nordbank (HSH), following last week's unanimous HSH shareholder approval of the €3 billion capital injection. The support measures are provided by two major shareholders of HSH, the city of Hamburg and the state of Schleswig-Holstein, which would inject €3 billion into HSH (€1.5 billion each) in the form of ordinary shares with voting rights to keep the bank afloat. They would also provide a €10 billion guarantee, shielding a broad asset portfolio of about €172 billion. A first-loss-tranche of €3.2 billion would be covered by HSH. The second loss tranche of up to €10 billion would be covered by Hamburg and Schleswig-Holstein (50% each).
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European Commission approves HSH Nordbank recapitalization and risk shield provided by two major shareholders
- Alston & Bird LLP
- Darren Cooper
- European Union, Germany
- May 29 2009
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Peter Breepoel
Senior Patent Counsel
Royal DSM NV
