Last month saw the first transaction under the new Irish asset covered securities legislation and, at the same time, the fruits of the 2002 restructuring of the German Depfa banking group.
That restructuring, which was by means of a demerger of Depfa’s public sector finance business and its property business, was the first to be achieved by way of a court-approved capital reduction in Ireland. Each of the two banks that the demerger created – Depfa Bank (an Irish incorporated and resident company) to conduct the public sector business and Aareal Bank (which remains a German entity) to conduct the property business – listed on the Frankfurt Stock Exchange in 2002.
