Germany

136 EuroWeek Financing supranationals and agencies

Minimum size: no outright minimum, but €10m or above preferred

Maturity: flexible

Structures: plain vanilla plus range of structures

Currencies: EUR, USD, CHF — others dependent on cross-currency swap

Private PlaCeMent PoliCy

RATING Aa1, AA-, AAA

€ bn

Debt issuance (2005-10)

* ForecastSource: NRW.Bank

2005

2006

2007

2008

2009

2010

*0

10

20

30

€ bn

Debt maturity profile

Source: NRW.Bank (approximate figures as at March 24, 2010)

2010

2011

2012

2013

2014

2015

0

4

8

12

16

20

€ bn

Total assets

Source: NRW.Bank

2004

2005

2006

2007

2008

2009

0

50

100

150

200

Issuance by currency (2009)

EUR

USD

Other

Source: NRW.Bank

19%

4%

77%

Investor base by region

Germany

Europeex-Germany

Asia

Other

Source: NRW.Bank (estimated values)

50%

25%

20%

5%

Issuance by type (2009)

Benchmark

DIP

Domestic (SSD& bearer bonds)

Source: NRW.Bank

26%

44%

30%

Debt iSSuanCe (2005-10)

Debt Maturity Profile

total aSSetS

iSSuanCe by CurrenCy (2009)

inveStor baSe by region

iSSuanCe by tyPe (2009)

NRW.Bank

Dietmar P binkowskaChairman of the managing board

Klaus rupprath Head of capital markets

risk weighting (basel ii): 0%

guarantee: Direct/explicit guarantee from owners, the state of North Rhine Westphalia.

NRW.Bank is 98.6% directly owned by the State of North Rhine-Westphalia. The remaining 1.4% is held by the two North Rhine-Westphalian municipalities of the Rhineland and Westphalia-Lippe.

Key offiCialS

riSK weighting / guarantee ownerShiP StruCture

NRW.Bank is the state development bank of North-Rhine Westphalia. In August 2002, Westdeutsche Landesbank Girozentrale was split up into West LB AG, which continues the activities of a competition-exposed bank, and Landesbank NRW, which is responsible for economic and structural development under a public mission.

overview

136-137 NRW.BANK.indd 136 06/05/2010 13:29

Germany

Financing supranationals and agencies EuroWeek 137

Standard & Poor’s

AA-, stable outlook

Strengths• Strong support mechanism from the State of North Rhine-Westphalia• Strong liquidity and low, state-supported funding costs• Limited credit risk, owing to a large proportion of public-sector lending• Strong capitalisation

weaknesses• The business model’s dependence on public policy role and state support• Increased market risks in the structured investment portfolio• Only modest profitability

The stable outlook on NRW.Bank reflects that on NRW because Standard & Poor’s believes that the guarantees and the bank’s current GRE status will be maintained in the foreseeable future. Any rating action on NRW will be reflected in a similar rating action on NRW.Bank.

Standard & Poor’s does not expect to see changes to the current support mechanism benefiting NRW.Bank, given that the bank will likely remain an integral part of the state’s economic development objectives. This expectation is consistent with the March 2002 agreement between Germany and the European Commission on future state support for German development banks.

fitch ratings

AAA, Outlook Stable, (affirmed 22 April 2009)

NRW.Bank’s ratings are based on the guarantees provided by its owners in the form of “Anstaltslast” (maintenance obligation) and “Gewaehrtraegerhaftung” (deficiency guarantee), and the explicit guarantee from the State of North Rhine-Westphalia (NRW, AAA/outlook stable), which enables it to meet its liabilities at all times. NRW.Bank is a public law institution, which is 98.6% owned by NRW and two regional associations, Landschaftsverband Rheinland and Landschaftsverband Westfalen-Lippe (0.7% each). The owners act as its joint and several liable public entities and guarantors (“Anstalts- und Gewaehrtraeger”).

Key reCent rating agenCy CoMMentary

Outstanding loan distributionPublic lending

German publicsector(Bund, states& municipals)

European publicsector(mainly centralgovernment level)

US public sector

Rest of the world(mainly centralgovernment level)

Source: NRW.Bank (as at March 24, 2010)

Total$100bn

68%

24%

4%4%

outStanDing loan DiStributionPublic lending

Source: Markit

bp

NRW Asset swap spread4.25% EUR November 2014

-20

-10

0

10

20

30

40

50

60

70

80

19 Fe

b 10

31 D

ec 0

9

31 O

ct 09

31 A

ug 0

9

30 Ju

n 09

30 A

pr 09

28 Fe

b 09

31 D

ec 0

8

31 O

ct 08

31 A

ug 0

8

30 Ju

n 08

30 A

pr 08

29 Fe

b 08

31 D

ec 07

Pos. bookrunner Parents

Deal value $ (Proceeds) (m)

no. %share

1 UniCredit Group 3,810 10 17.5

2 DZ Bank 2,643 8 12.1

3 NRW.Bank 1,924 3 8.8

4 LBBW 1,794 7 8.2

5 JPMorgan 1,766 5 8.1

6 WestLB 1,619 10 7.4

7 Morgan Stanley 1,428 13 6.6

8 HSBC 1,424 8 6.5

9 RBS 1,054 5 4.8

10 Barclays Capital 909 9 4.2Subtotal 18,370 58 84.4total 21,774 71 100.0

Source: Dealogic

toP booKrunnerS aPril 2009 – MarCh 2010

Pricing date: February 22, 2010

value: €1bn

Maturity date: March 2, 2015

offer price: 99.393

Coupon: 2.5%

Spread to benchmark: 34.4bp over Feb 2015 Bobl

bookrunners: DZ Bank, JPMorgan, NordLB,

UniCredit Group

Pricing date: January 26, 2010

value: $500m

Maturity date: February 1, 2013

Coupon: 3m Libor +25bp

bookrunners: HSBC, RBS

Pricing date: November 9, 2009

value: €2bn

Maturity date: November 16, 2011

offer price: 99.854

Coupon: 1.625%

Spread to benchmark: 45.1bp over 1.25%

Sep 2011 Schatz

bookrunners: Commerzbank, DZ Bank, HSBC,

LBBW, Natixis, RBS, UniCreditSource: Dealogic

MoSt reCent SynDiCateD DealS

equity capital 2009: €19.9bn

Core capital ratio: 11.88%

Source: NRW.Bank (as at December 31, 2009)

CaPital StruCture

Outstanding loan distributionNorth Rhine-Westphalia

Source: NRW.Bank (as at March 24, 2010)

Total $61bn

Corporates (SMEs) via housebanks

Social housing – municipal owned housing companies

Social housing – individual home owners

Loans to private individual (CO2 reduction programmes, educational financing)

Corporates (large caps)

Financial institutions (covered, senior, guaranteed bonds)

19.7%

24.6%

8.2%

18%

9.8%

19.7%

outStanDing loan DiStribution north rhine-WestPhalia

aSSet SwaP SPreaD 4.25% eu november 2014

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