February 20, 2014 / 11:52 AM / 4 years ago

Germany Aareal Bank seeks to repay state aid soon

FRANKFURT, Feb 20 (Reuters) - German property lender Aareal Bank seeks to repay the state aid it received during the financial crisis in the form of so-called silent participation as quickly as possible.

The bank said on Thursday it planned to issue hybrid capital -- addititional Tier 1 capital, or AT1 -- in the second half of the year that would enable it to repay the German bank rescue fund Soffin, bank officials said.

The issuance depends on German authorities issuing new guidance on the tax conditions that will apply to the AT1 instruments.

Aareal Bank received 525 million euros in a form of debt-equity hybrid called a “silent participation” at the height of the crisis, of which 300 million euros have yet to be repaid. (Reporting by Alexander Huebner; editing by Thomas Atkins)

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