Hypo Real Estate Holding AG announced Tuesday that its framework agreement with Germany’s Financial Markets Stabilisation Fund (SoFFin) will be revised to include an additional €12 billion of government guarantees, bringing the aggregate amount of government guarantees to €42 billion since Hypo RE applied for financial assistance last fall. The guarantees will cover debt maturing on or before June 12, 2009. In exchange for the guarantees, Hypo RE will pay an unused facility fee of 0.1% and a fee of 0.5% on any portion drawn. The actions taken Tuesday follow SoFFin’s decision last week to extend the draw period of the guarantees (which was originally scheduled to end on January 15, 2009) through April 15, 2009.

Hypo RE noted that its current negotiations with SoFFin for a more extensive, longer-term aid package had not yet been finalized.