Landeskreditbank Baden-Württemberg - L-Bank

APPLICATION OF PROCEEDS
As may be more specifically described in the relevant prospectus supplement, we will use the net proceeds
from the sale of the Debt Securities for our financing and securities activities.
L-BANK
GENERAL
Introduction
L-Bank is the state development bank of Baden-Württemberg, one of the states of Germany. We were
established by statute effective December 1, 1998, as a result of the separation of the state development business
from the commercial banking business of the former Landeskreditbank Baden-Württemberg, whereby all assets
and liabilities of the state development business were transferred to us.
We provide funding in support of the numerous development activities of Baden-Württemberg, acting as the
state’s own development bank. Pursuant to our governing law, we carry out our business not as a competitor to,
but as a supportive partner of, private, cooperative and public-sector banks operating in the open market.
We were established as an independent public law institution (Anstalt des öffentlichen Rechts) for an
indefinite term under the Act concerning Landeskreditbank Baden-Württemberg – Förderbank (Gesetz über die
Landeskreditbank Baden-Württemberg – Förderbank, the “L-Bank Act”), as enacted and amended by the State of
Baden Württemberg. Our powers and internal organization are further defined by our statutes (Satzung der
Landeskreditbank Baden-Württemberg – Förderbank, the “L-Bank Statutes”). We are a member of the Federal
Association of German Public Sector Banks (Bundesverband Öffentlicher Banken Deutschlands e.V.), Berlin.
Our headquarters are located at Schlossplatz 10, 76131 Karlsruhe, Federal Republic of Germany, and our
telephone number is +49 (0) 721-1500. We maintain a branch office in Stuttgart.
As Baden-Württemberg’s state development bank our main responsibilities and activities are:
• the financing, primarily on a subsidized basis, of housing construction, trade, industry, agriculture and
forestry, environmental protection, urban renewal and development projects, as well as improvements to
the state infrastructure in the form of loans, grants, guaranties or equity capital, with a special focus on
providing support for small and medium-sized enterprises (SMEs) in Baden-Württemberg; and
• administering the application of funds for a large number of state, federal and European Union financial
aid programs, especially for family benefits.
We also invest in securities in furtherance of our responsibilities as a development bank.
The government of Baden-Württemberg, the German federal government and other public authorities —
including institutions of the European Union — all fund our activities by way of loans and grants. In addition, we
employ own funds. The ongoing difficulties of the federal government and the government of Baden-
Württemberg to balance their budgets could result in a reduction of the support of development programs, which
could negatively affect the volume of our business in the years to come.
In certain areas of financing, for example as part of our lending in support of housing and agriculture, we
extend loans on a fiduciary basis by granting loans in our own name but on behalf and at the sole risk of certain
German or supranational governmental or quasi-governmental entities on terms specified by such entities
(“fiduciary loans”). The funds used for such fiduciary loans are supplied entirely by the relevant financing entity.
6