IKB sees 500 mln eur Q1 writedowns, gets KfW funds
FRANKFURT, July 22 (Reuters) - IKB (IKBG.DE) expects to take another 500 million euros ($794.4 million) in first-quarter writedowns as market ructions continue to hit the bank, Germany's highest-profile casualty of the subprime crisis.
"According to present knowledge, the valuation of liabilities for which IKB in previous years had exercised the option of valuation at fair value through profit and loss and of liabilities to be valued pursuant to IAS 39 AG 8 will lead to a valuation loss of approximately 500 million euros for the first quarter of the 2008/09 financial year," it said in a statement on Tuesday.
Final first-quarter results are expected in September.
IKB said it had also lined up more money from main shareholder KfW [KFW.UL], the German state development bank that led the rescue for IKB.
"KfW and IKB have also concluded an agreement on another secured liquidity facility in the amount of 1.5 billion euros yesterday," it said.
KfW, which is seeking a buyer for IKB, is taking the lead in a planned 1.25 billion euro capital increase for the bank.
But proceeds from the increase are no longer expected to arrive in August, IKB said, noting the transaction required European Union approval as possible state aid. Brussels is supposed to make its ruling by October at the latest, it added. (Reporting by Michael Shields; editing by Sue Thomas) (michael.shields@thomsonreuters.com, Reuters Messaging: michael.shields.reuters.com@reuters.net; +49 69 7565 1266)) ($1=.6294 Euro)
