Introduction

On 2 October the DEPFA share traded for the last time and DEPFA ceased to be an independent group. The last steps of the merger process have been successfully completed and DEPFA is now a 100% subsidiary of Hypo Real Estate Group. The successful execution of this merger was all the more remarkable given the crisis in the credit markets over the summer 2007 and proves that the strong investment case of the combined entity remained at the centre of investors' attention. It was the second largest transaction between financial institutions in Germany in the last years and the largest transaction of its kind in Ireland ever.

The last price for a DEPFA share was € 14.90 which translates into a market capitalization of EUR 5.3 bn. This marks a considerable improvement on the initial share price of € 6.30 and a market capitalisation of € 2.2 bn in June 2002 when DEPFA relaunched itself as a stand alone public finance bank. Over this period the bank has transformed itself successfully from a market sensitive institution with a high contribution from trading activities into a bank with a strong client focus and almost its entire revenues generated from client facing businesses. This clear client focus will continue to be developed within the new Group, fostered by a vibrant entrepreneurial spirit that is a common trait to both institutions.