OLB Bank Pfandbrief Presentation - March 2021
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OLB Bank Pfandbrief Presentation March 2021
OLB Bank Pfandbrief Presentation
Who is presenting on our Global Investor Call?
Dr. Rainer Polster Helga Holzke Stefan Barth
Chief Financial Officer Deputy Head of Treasury Chief Risk Officer
Rainer.Polster@olb.de Helga.Holzke@olb.de Stefan.Barth@olb.de
+49 441 221 1816
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 2Table of Contents
1 OLB Bank Overview and Strategy
2 OLB Bank Funding and Issuance
3 OLB Bank Credit Risk and Cover Pool
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 31 OLB Bank Overview and Strategy
1. OLB Bank Overview and Strategy
At a glance
Modern financial institution and Pfandbrief bank
Operations throughout Germany Sustainable Strategy Our lines of business
▪ With our strong and prestigious OLB and Bankhaus We offer our clients integrated solutions from a single
Neelmeyer brands, we are a modern customer- source – with a competitive product palette in our
focused, financial institution with operations strategic lines of business:
Oldenburg throughout Germany.
Hamburg
▪ We strive to find the correct financial solutions given
Private Clients
Bremen the current environment, with particular focus on the
expectations of our clients. ▪ Retail
Hanover Berlin ▪ Private Banking and Wealth Management
▪ Our business strategy – a strong customer base,
▪ Freelancers
solid refinancing sources including retail customer
Dusseldorf
deposits and Pfandbrief (covered) bonds, and Corporates & SME
specialized staff – provides the basis for ensuring ▪ Corporates
that our success story will continue in the years to ▪ SME
Frankfurt
come, 150 years after OLB was founded.
▪ Football Finance
▪ We attach particular importance in our client
Ludwigsburg/ Specialized Lending
Stuttgart
business to the high level of competence of our
advisory services, and excellent multi-channel ▪ Acquisition Finance
Munich accessibility (branch, telephone, video chat, online ▪ Commercial Real Estate
and mobile banking). ▪ Shipping
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 51. OLB Bank Overview and Strategy
Strategic lines of business offer a broad range of services
Private Customers Corporates & SME Specialized Lending
› Fully loaded online in addition to bricks › Small-scale business banking in north- › Acquisition Finance: Arranging and
and mortar retail banking in north-western western Germany structuring of debt financing with focus on
Germany › Fully loaded corporate banking nation- LBOs for SMEs in Germany, Austria and
› Digital nationwide online proposition wide with selective business in Austria and Switzerland
including exclusive access to the Switzerland › Commercial Real Estate: Financing for
nationwide distribution network of W&W › Football Finance: Primarily transfer construction firms and developers
Group financing with focus on the TOP 5 financially › Shipping: Selective new business with
› Nucleus for Private Banking & Wealth strong football leagues in Europe well-known clients focussed on small & mid-
Management proposition with focus in north- sized sea vessels and Multi-purpose vessels
western Germany
Figures 12/2020 Figures 12/2020 Figures 12/2020
Customers ~645K Customers ~13K Customers ~1K
Asset Volume EUR 8.0 Bn. Asset Volume EUR 5.6 Bn. Asset Volume EUR 2.2 Bn.
RWA EUR 2.1 Bn. RWA EUR 4.0 Bn. RWA EUR 2.4 Bn.
All numbers in accordance with IFRS OLB Bank Company Presentation Ι Strictly confidential Mar 2021 61. OLB Bank Overview and Strategy
Our shareholder structure
Teacher Retirement System of Texas Apollo Global Management Grovepoint Investment Management
Pension fund with retirement and Leading global asset manager A specialist private investment
comparable services for approx. 1.5 million for equity, loan and real estate investments firm focused on private equity,
payers and recipients in public and higher credit and unique situations
education
– headquartered in Texas, USA – headquartered in Delaware, USA – headquartered in London, Great Britain
32.00% of shares via 35.72% of shares via 32.28% of shares via
Texas Bildung Holding GmbH & Co. KG Champ Luxembourg Holdings S.à r.l. GIM Strategische Investition VI S.à r.l.
Shareholder ▪ Strong financial basis ▪ Global presence
characteristics ▪ Long-term focus ▪ Excellent reputation
▪ No controlling interest ▪ Independent of each other
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 71. OLB Bank Overview and Strategy
OLB Bank – Ingredients for success
Key credit factors Key financials (12/2020, HGB)
▪ Modern financial institution serving retail, private banking and corporate clients with nation-wide € 21.5bn
Sustainably operations. Total assets
profitable
▪ Loan business primarily funded with stable and sticky retail deposits
business model 12.2 %
▪ Solid profitability with an after-tax return on equity of 6.9% in 2020 Common Equity Tier 1 capital ratio
14.2 %
Aggregate capital ratio
Robust balance ▪ Well diversified loan portfolio supported by robust balance sheet and stable deposit based refinancing
sheet with a sources 2.6%
conservative risk NPL ratio1
profile and solid ▪ Risk provisioning still moderate with €30.7m LLP and an NPL ratio1 of 2.6% and a coverage ratio2
asset quality of 95.6%
65.6%
Cost-income-ratio
€ 78.6m
▪ Solid capital base of more than €1bn Common Equity Tier 1 capital Net income for the fiscal year
Solid capital ▪ Total risk weighted assets of €8.7bn as of 12/2020
position 6.9%
▪ Fully-loaded Common Equity Tier 1 capital ratio as of 12/2020 of 12.2%, Tier 1 capital ratio of 12.7%, (after-tax) Return on equity
aggregate capital ratio of 14.2% and leverage ratio of 5.1% - well above regulatory requirements
1 Proportion of non-performing customer receivables 2 Change to economic collateral view OLB Bank Company Presentation Ι Strictly confidential Mar 2021 81. OLB Bank Overview and Strategy
Successful year 2020 for OLB despite Covid-19
Operating Income1 [€m] Cost-income-ratio1
Medium-term
+6.9% -8.4%-Pts. ambition:
< 50%
449.7 74.0%
65.6%
420.8
2019 2020 2019 2020
(after tax) Return on Equity1 Common Equity Tier 1 capital ratio1
Medium-term Medium-term
-3.3%-Pts. ambition: +0.4 %-Pts. ambition:
> 11% >12%
12.2%
10.2%
11.8%
6.9%
2019 2020 2019 2020
1 In accordance with local GAAP OLB Bank Company Presentation Ι Strictly confidential Mar 2021 91. OLB Bank Overview and Strategy
Important figures and data in detail
Key HGB earnings and figures as of December 31, 2020
HGB-Results (€m) 01/01/ – 31/12/2020 History of OLB AG (€m) (HGB)
1 Operating income 449.7 1 Operating income
thereof: Net interest income 336.3
449.7
thereof: Net commission income 113.3 420.8
2 Operating expenses -295.1 2019 2020
Net other operating income (+) 3.6
and expenses (-) 2 Operating expenses
Risk provisions for credit business -30.7 311.3
Gain (+)/loss (-) on securities in the liquidity reserve 8.0 295.1
Net operating result 135.5
2019 2020
Other and extraordinary results -20.6
Profit before taxes 114.9 3 Net profit
109.8
3 Net profit 78.6 78.6
Return on Equity after taxes1 6.9 %
2019 2020
1 The ratio of net profit to average con balance sheet capital
1 In accordance with local GAAP OLB Bank Company Presentation Ι Strictly confidential Mar 2021 101. OLB Bank Overview and Strategy
Solid capital ratios
Capital ratios well above minimum regulatory requirements
Development of required capital in accordance with HGB for OLB AG Highlights
In accordance with §10 KWG in conjunction with Art. 25 to 88 CRR ▪ OLB‘s numbers are well in excess of the
minimum capital requirements laid out under
Min. Total Capital Requirement1
15.5% Basel III.
14.5% 14.1% 14.2% 11.38% Aggregate Capital Ratio
Aggregate Capital Ratio
9.36% Tier 1 Capital Ratio ▪ The capital ratios remain at a level above
7.84% Common Equity Tier 1 that set out by the BaFin for OLB under its
Capital Ratio
S-REP Process.
12.4% 11.4% 11.8% 12.2% ▪ The Bank‘s CET1 ratio improved to 12.2%.
CET1 Ratio
▪ The core capital ratio (T1) was steady at
12.7%.
2017 2018 2019 2020
▪ To strengthen its capital base, OLB may issue
€m
equity or equity-like instruments in the course
CET1 Capital 623 966 1,042 1,056 of 2021.
T1 Capital 623 1,009 1,084 1,098
Risk weighted assets 5,029 8,483 8,806 8,659
Core capital ratio 12.4% 11.9% 12.3% 12.7%
1 In accordance with the final SREP and Capital targets decision for 2020 OLB Bank Company Presentation Ι Strictly confidential Mar 2021 112 OLB Bank Funding and Issuance
2. OLB Bank Funding and Issuance
Stable refinancing
Client deposits are stable and remain the most important strategic source of funding
Balance Sheet OLB AG as of December 31, 2020 (HGB €bn) Highlights
21.5 21.5 ▪ OLB‘s customer loan business is funded entirely
via retail deposits
▪ The stable and sticky deposit base means that
OLB is not overly reliant on the capital markets
▪ OLB‘s investment portfolio has been
12.8 13.0 constructed with a strong focus on the bank‘s
liquidity reserve position. The portfolio is almost
exclusively comprised of public sector bonds
with excellent ratings
Receivables from customers Liabilities to customers
(own funds) ▪ Utilization of the TLTRO III program has lead to
Refinancing (development programs)
Receivables from customers 2.8 substantial cash reserves.
2.8 Liabilities to banks
(development programs) ▪ At year end, the NSFR was at 105.5%; and the
Securitized liabilities
Securities 2.9 2.5 Other items LCR was at 143.0%
Cash reserve 0.3 Subordinated debt
Receivables from banks 1.7 1.6
Equity and reserves
0.8 0.2
Other items 0.6 1.2 per Sec. 340g HGB
Assets Liabilities
In accordance with local GAAP
Rounding Differences Possible OLB Bank Company Presentation Ι Strictly confidential Mar 2021 132. OLB Bank Funding and Issuance
Funding structure optimized by Pfandbrief issuance
Liability structure by instruments Highlights
▪ OLB Bank’s long standing customer base provides a strong
21.5 and sticky base of retail deposits. Customer deposits will
19.6 2.4
remain OLB Bank’s most important liquidity source.
19.1
1.9
0.2
0.2 ▪ OLB Bank opportunistically used ECB’s TLTRO III program,
2.8
0.7 2.8 which led to the substantial increase of liabilities to banks and
0.2
0.9 0.1 Liabilities to banks
lower funding costs.
0.3 2.8
1.6
0.1 Promissory notes ▪ OLB’s funding base has been strategically diversified with the
2.8
0.1
0.6 Subordinated debt issuance of mortgage covered bonds (Pfandbriefe), reducing
0.8 Development banks funding costs. OLB Bank intends to issue sub-benchmark
Securitized Liabilities Pfandbriefe on a regular basis going forward; issuance of
Other Liabilities senior preferred/non-preferred is an option, too, but not yet
11.9
12.7 Customer Deposits decided.
Covered bonds
10.5
Equity
▪ Continued close collaboration with KfW and other
development banks (matched asset position).
0.3 0.4
1.0 1.1 1.2
2018 2019 2020
Rounding Differences Possible OLB Bank Company Presentation Ι Strictly confidential Mar 2021 142. OLB Bank Funding and Issuance
Funding profile – Maturity and liquidity profile
Funding maturity profile FY 2020 Funding maturity profile FY 2020
1.7% 0.3%
2.4%
Customer deposits ▪ The maturity profile reflects OLB’s requirements as well as current market opportunities,
including the use of the ECB’S TLTRO facility.
▪ Customer deposits are largely on-demand, but customer behaviour exhibits strong tendency
for long term holding and stickiness over financial cycles.
▪ LCR and NSFR ratios remained at a good level in 2020. OLB will look to maintain these
95.6% levels going forward in 2021 and beyond.
3m-1Y >1Y-5Y >5Y
LCR NSFR
Due to banks Promissory notes; covered bonds
55.6%
42.5%
31.5%
20.0%
16.9%
14.6%
11.4%
7.5%
3m-1Y >1Y-5Y >5Y
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 152. OLB Bank Funding and Issuance
OLB re-enters the Debt Capital Markets
Successful Pfandbrief debut in 2019
OLB applies for and receives a Successful initial placement Efficient use of the cover pool Looking forward
Pfandbrief license
▪ Applied for the Pfandbrief license in ▪ Went to market at the start of 2019 ▪ Continued cover pool growth led to ▪ Post OLB‘s first ever sub-benchmark
the spring of 2016. via Private Placement format. OLB issuing retained covered bonds. issuance on the capital markets, it
intends to retain a regular presence
▪ Granted by the BaFin in the summer ▪ Clients included pensions funds, ▪ These were issued in two tranches as an issuer.
of 2018. insurance firms, banks and building totalling € 190m.
societies. ▪ This will include all types of notes, as
▪ These bonds initially generated and when required and subject to
▪ Easily met € 100m target. liquidity via interbank repo. market conditions.
▪ Pfandbrief issuance has continued ▪ They were, until recently, part of our
on a reverse inquiry basis. ECB liquidity, thanks to Moody‘s
rating of the pool.
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 162. OLB Bank Funding and Issuance
Moody‘s confirms OLB Baa2 issuer rating and assigns OLB Aa1 Pfandbrief rating
Moody‘s awarded OLB a Baa2 (stable) deposit and issuer rating in the autumn of 2019.
Moody’s noted OLB’s “Sound capitalization”, a “low dependence on wholesale funding” and “Improving problem loan ratio”.
In addition, Moody’s assigned a Aa1 rating to OLB’s issued Pfandbriefe in the autumn of 2020.
Moody’s noted mitigation of any refinancing risk, the deep market for German Pfandbriefe and lack of any currency risk in the
cover pool.
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 172. OLB Bank Funding and Issuance
Pfandbrief Summary Term Sheet
Issuer Oldenburgische Landesbank AG (the "Issuer")
Instrument Mortgage Pfandbrief (Hypothekenpfandbrief) (the "Notes")
Issuer Rating Baa2 (stable) (Moody's)
Cover Pool Rating Aa1 (Moody's)
Issue Rating Aa1 (Moody's)
Currency / Size EUR sub-Benchmark
Value Date xxth March 2021
Maturity xxth March 2031
Interest Fixed rate of 0.xx%, payable on xxth March of each year, with the first interest payment date being xxth March 2022
ECB Eligible Yes
LCR Eligible Yes, HQLA Level 2a
Governing Law German
Listing Hamburg Stock Exchange, regulated market
Documentation Base Prospectus of Oldenburgische Landesbank AG dated 14 September 2020 [and supplement[s] dated []]
Form Reg s, Bearer
Denomination EUR 100,000 x EUR 100,000
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 183 OLB Bank Credit Risk and Cover Pool
3. OLB Bank Credit Risk and Cover Pool
Action Plan on the impact of COVID-19 on the Credit Portfolio
The bank has taken diverse measures to understand and reduce the credit- and liquidity risk caused by the corona crisis
Comprehensive portfolio impact-analysis for all segments (except private Portfolio analysis & Task Force for SME and Private Clients. Preparing the bank
✓ customers & Micro Cap) based on two different scenarios to determine individual ✓ to handle the huge demand for support
impact of corona for each client.
Preparing the restructuring department for the recession to make sure that the
Update of Portfolio analysis to change focus from pure Corona-influence to large number of problem loans can be handled with regard to quantity as well as
✓ impact of a severe recession & 6 regular updates of the Portfolio analysis quality
since then
Top down Portfolio View
Focus on liquidity: ✓
✓ - Coordinated email to all clients requesting updated liquidity forecasts;
Perform PD, EL, SLLP/GLLP-simulations for different scenarios & update in
November as input for Business Plan 2021-23
- Limited internal credit “Freeze” for new business (except private clients)
- Control over cash outflows by implementing an approval process for RCF-draw
downs.
- New system-based monitoring tool implemented to escalate customers with Business Plan Update 2020 including the Outlook for 2021/2022 completed.
“unusual” drawdown behaviour on existing credit lines
✓ Subsequent preparation and adoption of the Business Plan for 2021-2023
Prepare for usage of state support programs (e.g. KfW Sonderprogramm).
✓ Understand the programs & prepare internal resources
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 203. OLB Bank Credit Risk and Cover Pool
Credit portfolio at a glance
KPI Rating structure by EAD
€ bn n/a: No rating obligation (e.g. internal accounts) or no valid rating
€m 12/2018 12/2019 12/2020
8.7 12/2018 12/2019 12/2020
8.3 8.1 8.2
EAD 16,485 18,140 18,989 7.8
6.9
Net risk 10,591 12,089 12,667
RWA 6,929 7,785 7,622
NPL 2.9% 2.5% 2.7%
Coverage Ratio 91.3% 82.2% 95.6% *
1.4
0.9 1.0
CoR 0.06% 0.06% 0.29% 0.4 0.4 0.4 0.4 0.2
0.1 0.1 0.2 0.1
Low risk Medium risk High risk Intensive Care Non Performing n/a
Business Units by EAD Regions by EAD Care status by EAD
188 170 12/2020
1.777
1.015
270 16 Low. Saxony / Bremen 63.7% Normal care 88.8%
Retail 37.0%
1.342 Wealth Managem. 3.4% NRW 8.8% Risky 9.4%
1.585
313 Rest of Germany 19.1% Restructuring 1.0%
SME 23.1% 8% 16.854
7.032 Corporates 21.0% 3.620 abroad 8.3% Wind up 0.9%
19% €m
Football Finance 1.7%
3.980
AQF 7.1% 171 193 12/2019
1.679 1.738
CRE 5.3% 9% Normal care 88.4%
12.105
Ship 1.4% 64% Risky 9.6%
4.383
638
Other 0.1% 16.038 Restructuring 0.9%
12/2020; € m 12/2020; € m €m Wind up 1.1%
Note: 12/2018 without BHN * Change to economic collateral view OLB Bank Company Presentation Ι Strictly confidential Mar 2021 213. OLB Bank Credit Risk and Cover Pool
A large majority of the mortgage portfolio in residential use
Roughly 65% of the secured mortgage portfolio are objects situated purely in the residential space
Gross Risk Distribution1 as per 31.12.2020 Distribution according to type as per 31.12.2020
Secured mortgage portfolio
Under construction
Agriculture 9,7%
0,4%
38%
Secured by mortgages
Commercial
€ 21.1bn Other Collateral € 7.8bn
25,3%
Unsecured
57% 5% Residential
64,6%
Distribution according to type as per 31.12.2020 Loan to value ratio as of 31.12.2020
Secured mortgage portfolio, residential use Secured mortgage portfolio, commerical use
67.3%
Other commercial use
Multi-family 23% (e.g. Industrial) Offices
42%
25% 12.2% 7.3% 9.2%
4.0%
€ 5.0bn € 2.0bn
120%
LTV’s are distributed using a staggered approach, i.e. every € is attributed to its individual LTV-bucket.
Apartment 13% An exposure with a 100% LTV is distributed with 60% to the < 60% LTV bucket, with 20% to the 60-80%
Detached 64% Commercial (incl. Logistics,
LTV bucket
Warehouse, Refigeration)
33%
1 Gross Risk arising from client business = Credit Limits + Credit equivalent amounts from derivatives and possible liabilities from guarantees OLB Bank Company Presentation Ι Strictly confidential Mar 2021 223. OLB Bank Credit Risk and Cover Pool
Cover Pool details
Figure I
▪ The Cover Pool currently consists of approximately 4,600 mortgage
loans issued by OLB.
▪ The average size of each mortgage in the Pool is approximately
€105,000.00.
▪ The maturity profile of the Pool skews heavily to the long end, as
noted in Figure I.
▪ The geographic distribution of the Pool is 100% German, distributed
as per Figure II. There are therefore no currency risks, as the Pool is
purely EUR denominated.
▪ The seasoning of the pool, as noted in the §28 Report for the
Figure II Pfandbrief, is currently a healthy 3,73 years.
▪ OLB has placed EUR 181m of Pfandbriefe with external investors to
date. In addition, at the end of 2020, OLB had issued €190m of
retained covered bonds. These have been terminated to allow for
sufficient space in the Cover Pool for the sub-benchmark issuance.
EUR
500MIo. ▪ The issuance will be rated Aa1 (Moody‘s).
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 233. OLB Bank Credit Risk and Cover Pool
How does our Pfandbrief stand out from the crowd?
A strong private client base provides the foundation for a strong Cover Pool
OLB Cover Pool criteria for use in the Pfandbrief issuance
✓ The Cover Pool will initially only include finished residential units (e.g. detached, semi detached and multi-family housing, as well
as mixed use units where the vast majority of space is used as housing) .
Properties have to meet clearly
✓ The Pool will most likely expand to include further objects such as properties suitable for third party use.
defined requirements
✓ There are currently no assets in the Pool outside of the Federal Republic of Germany, as well as building sites, construction sites
or loans to developers or project managers.
✓ There are no assets included where credit worthiness has been placed under scrutiny (incl. those with payment arrears of >
15 days).
The Cover Pool is under
✓ Assets in the Cover Pool which no longer meet the selection requirements are passed on to the custodian with the
constant supervision recommendation that they be removed.
✓ Especially intensive controlling processes.
✓ Expansion of the associated Pool is planned only for management purposes.
The quality of the Cover Pool
✓ The exceptional surplus cover has been conservatively planned.
exceeds legal requirements
✓ No currency risks – all loans are EUR denominated.
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 243. OLB Bank Credit Risk and Cover Pool
Summary of Proposed Transaction and Issuance Rationale
▪ Mortgage Pfandbriefe issued by Oldenburgische Landesbank AG
▪ ECB Repo eligible
Offering Summary ▪ EUR sub-benchmark RegS 10 year bullet structure
▪ Issued out of OLB‘s EUR debt issuance program (DIP)
▪ Issue rating (Aa1) by Moody‘s
▪ Broadening of the existing credit investor base
Transaction Rationale ▪ Continued diversification of funding sources
▪ Increase OLB‘s financial flexibility
▪ Opening the pathway to future varied issuance going forward
▪ Strong capitalized bank among European peers with a CET1 ratio of 12.2% and a leverage ratio of 5.1%
▪ Specialized German lender displaying sustainable profit
Investment Thesis ▪ Strict cost reduction discipline is paving the way to a CIR below 50% in the medium term
▪ Cover Pool is 100% residential and 100% German, and therefore 100% EUR denominated
▪ The Cover Pool is highly granular, has very strict lending criteria and 0% NPL‘s.
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 25Appendix
4. Appendix
Strategic development of the Bank
Oldenburgische Landesbank AG (OLB), Bremer Kreditbank AG (BKB) and Bankhaus Neelmeyer AG
(BHN) merged during 2018, OLB and Wüstenrot Bank AG Pfandbriefbank in 2019 to form:
1968 2019
Foundation Merged with OLB
Retail partnership
Partnership platform of the bank platform and online
with W&W Group banking
1907 1997 2005 2017 2018
“Fonds- und Takeover of affiliate’s Acquired by “UniCredit Acquired by BKB Bank Merged with OLB Wealth Management
Effektenmaklerbüro P.F. “Geestemünder Bank AG” Bank AG”
Neelmeyer” was founded operations
and Private Banking
1869 1933 1978 2008 2018 2018
Founded by Frankfurt- Takeover and merger with Majority interest acquired Allianz Group takes Acquired by BKB Bank OLB “new” after merger Retail Banking,
based banking house “Oldenburgische Spar- by “Dresdner Bank AG” direct ownership and subsequently delisted with BKB and Bankhaus
“Erlanger & Söhne” & Leihbank” from stock exchange Neelmeyer
Corporate Banking
1863 1945 1982 1999 2014 2018
Foundation as an advance Merger with “Bankverein für Majority of stock acquired Renamed as “KBC Bank Renamed under new Merged with OLB
payment association Nordwestdeutschland” to form by “Kredietbank NV”, Deutschland AG” ownership as “Bremer
Corporate Banking,
(“Vorschussverein”) “Bankverein Bremen” Brussels Kreditbank AG Specialized Lending
(BKB Bank)”
Stable ownership structure
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 274. Appendix
Report in accordance with Pfandbrief law, Paragraph 28
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 284. Appendix
Report in accordance with Pfandbrief law, Paragraph 28 (contd.)
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 294. Appendix
Report in accordance with Pfandbrief law, Paragraph 28 (contd.)
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 304. Appendix
Expansion of our refinancing capabilities
ABS-Transaction „Weser Funding S.A.“ issued successfully in 2020
Weser Funding S.A. - Compartment No. 2 Advantages
▪ ISIN: XS2156515848 ▪ Expansion of our refinancing capabilities via an ABS
transaction.
▪ Issuance volume : 1,108 Mio. Euro, thereof 726 Mio. Euro Senior A-Note.
▪ Allows balance sheet growth which does not have to
▪ Issuance date: 07. May 2020. be refinanced via client deposits.
▪ Rating from Moody‘s (A2 (sf)) and DBRS (A (low)(sf)). ▪ Reputational improvement on the capital
markets.
▪ Tenor: 3 Year revolving period (through May 2023), thereafter amortizing through 2055 as set out via the
termsheet. ▪ The Weser Funding platform can be used for further
ABS transactions if required.
▪ The portfolio consists of loans made to large corporate clients and SMEs, throughout Germany as well as in
▪ Retention of technical competence for structured
selected EU countries, with all assets denominated in Euros.
refinancing.
▪ The structure is „on balance“, i.e. the credit risk of the underlying portfolio remains with OLB.
▪ The senior A-Note is currently being used as collateral under the ECB‘s Targeted Long Term Refinancing
Operations, or TLTRO II.
OLB Bank Company Presentation Ι Strictly confidential Mar 2021 314. Appendix
Disclaimer
This document is intended for distribution only to professional and institutional investors of the Bank. It is not for distribution to, and must not be used by, private investors, private clients or other third parties, and
such persons may not rely on it for any purpose whatsoever.
This information does not contain any offer to acquire or subscribe the securities mentioned therein, nor should it be construed as an invitation to do so. The opinions expressed herein reflect our current
assessment, which is subject to change even without prior notification. This information cannot be regarded as a substitute for individual advice tailored to the investor's respective situation and investment
objectives.
Likewise, this presentation does not, either in whole or in part, constitute a sales prospectus or any other stock exchange prospectus. The information contained in this presentation therefore merely provides an
overview and should not form the basis of an investor's potential decision to purchase or sell the securities.
The information and assessments (collectively referred to as "information") are intended solely for clients with their registered office in the Federal Republic of Germany. In particular, this information is not
addressed to US citizens or US residents and US persons or Australian, Canadian, British or Japanese citizens or residents and must not be distributed to such persons or introduced into or disseminated in such
countries. This document including the information contained therein may be used abroad only in accordance with the relevant applicable law. Any persons receiving this information shall be obliged to familiarise
themselves with and observe the legal provisions applicable in their respective country.
This document has been prepared and published by Oldenburgische Landesbank AG, Oldenburg.
The information has been carefully researched and is based on sources deemed to be reliable by Oldenburgische Landesbank AG. However, the information may no longer be up-to-date and may be obsolete by
the time you receive this document. Furthermore, it cannot be ensured that the information is correct and complete. Oldenburgische Landesbank AG therefore assumes no liability for the contents of the
information.
In addition, this presentation in connection with Oldenburgische Landesbank AG contains various forward-looking statements and information based on the management's beliefs and on assumptions and
information currently available to the management. Considering the known and unknown risks associated with the business of Oldenburgische Landesbank AG as well as uncertainties and other factors, the
future results, performances and outcomes may differ from those deduced from such forward-looking or historical statements. Therefore, any persons receiving this document should not rely entirely on such
forward-looking or historical statements.
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