Free State of Bavaria Reorganizes BayernLB's Equity Structure

Global law firm White & Case LLP has provided advisory services to the Free State of Bavaria in the restructuring of BayernLB's equity framework to address concerns raised by the European Central Bank regarding the Free State's silent participation as regulatory equity capital. The reorganization entails the cancellation of this silent participation while maintaining its value as equity capital, resulting in an increased stake for the Free State of Bavaria in BayernLB Holding AG from approximately 75% to 80.17%. This arrangement ensures that the profit-sharing ratio between the Free State and the Association of Bavarian Savings Banks remains largely unchanged, thereby allowing BayernLabo to sustain its housing development initiatives. The restructure addressed a portfolio of residential loans termed as special-purpose deposits used for housing funding since 1994. The transaction was led by a multidisciplinary team from White & Case, involving specialized legal experts in Berlin and Frankfurt.