DGAP-Ad-hoc: Deutsche Pfandbriefbank AG / Key word(s): Miscellaneous Deutsche Pfandbriefbank AG: Initiation of Expert Procedure concerning a credit default hedge under the 'ESTATE UK-3' securitisation transaction 13-Dec-2016 / 23:13 CET/CEST Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Initiation of Expert Procedure concerning a credit default hedge under the "ESTATE UK-3" securitisation transaction Munich, 13 December 2016 - Deutsche Pfandbriefbank AG ("pbb"), the legal successor of Hypo Real Estate Bank International AG, Stuttgart, is the issuer of credit linked notes of the "Estate UK-3" synthetic securitisation transaction ("Credit Linked Notes"). These Credit Linked Notes hedge the default risk from certain credit exposures of pbb, provided that the conditions for the allocation of realised losses have been fulfilled in accordance with the terms of the Credit Linked Notes. A default affecting one of the hedged exposures ("Reference Claim No. 3") has caused a loss of approximately GBP 113 million (please refer to pbb's ad-hoc announcement dated 18 January 2016); pbb intends to allocate this loss to the Credit Linked Notes. This loss allocation would trigger a total loss for Credit Linked Notes Classes A2, B, C, D and E, and would reduce the nominal amount of Class A1+ (of GBP 400,000) by approximately 0.1%. Deloitte GmbH Wirtschaftsprüfungsgesellschaft, in its capacity as trustee of the ESTATE UK-3 transaction, today notified pbb that in their view doubts exist as to whether the loss allocation intended by pbb is justified, and that the Trustee will appoint an Expert, in accordance with the terms of the ESTATE UK-3 transaction, who will decide on whether the loss allocation is in fact justified. In the event of the loss allocation being fully or partially unjustified, pbb would have to bear the losses to that extent. In pbb's opinion, the conditions for the planned allocation of losses have been met. The prospectus for the ESTATE UK-3 transaction is available on pbb's website: https://www.pfandbriefbank.com/debt-instruments/securitisation/ estate-uk-3.html. Contact: Walter Allwicher +49 (0) 89 2880 28 787 --------------------------------------------------------------------------- 13-Dec-2016 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Deutsche Pfandbriefbank AG Freisinger Strasse 5 85716 Unterschleissheim Germany Phone: +49 (0) 89 2880 28 201 Fax: +49 (0) 89 2880 22 28 201 E-mail: [email protected] Internet: http://www.pfandbriefbank.com ISIN: DE0008019001, Die internationalen Wertpapierkennnummern (ISIN) weiterer von der Deutsche Pfandbriefbank AG ausgegebener Finanzinstrumente sind abrufbar auf der Website der Deutsche Pfandbriefbank AG unter https://www.pfandbriefbank.com/investor-relations/pflichtve roeffentlichungen/ad-hoc-mitteilungen/liste-weiterer-finanz- instumente.html. The International Securities Identification Numbers (ISINs) of further, financial instruments issued by Deutsche Pfandbriefbank AG are available on Deutsche Pfandbriefbank's Investor Relations website under https://www.pfandbriefbank.com/en/investor-relations/mandat ory-publications/ad-hoc-announcements/list-of-further-finan- cial-instruments.html WKN: 801900 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard), Munich, Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover; London, Mailand, Paris, Luxemburg, SIX End of Announcement DGAP News Service --------------------------------------------------------------------------- 529487 13-Dec-2016 CET/CEST