COMMERZBANK AKTIENGESELLSCHAFT

92
Commerzbank AG
(25) Subordinated liabilities
Subordinated liabilities amounted to €12,161m (previous year:
€11,226m) and may only be repaid after the claims of all nonsubordinated
creditors have been satisfied in the event of
insolvency or winding-up. There is no obligation to make
repayment or right to claim interest otherwise.
The obligations arising from the bonds and notes are
subordinated obligations of the issuer which rank pari passu
with all the issuer’s other subordinated liabilities. The bearer
may not put bonds and notes. The terms and conditions for
subordinated liabilities apply. Conversion into equity or another
form of debt is not stipulated in the contractual agreements.
In the financial year, interest paid on Subordinated liabilities
amounted to €675m (previous year: €576m). The following
borrowings exceed 10% of the total amount of this item as at
December 31, 2011:
Code number Currency €m Interest rate in % Due date
WKN CB83CE EUR 1,254 6.38 22.3.2019
WKN CB83CF EUR 1,250 7.75 16.3.2021
(26) Profit-sharing certificates
Of the profit-sharing certificates recorded in the balance sheet,
€707m (previous year: €707m) qualified as liable equity capital
as defined in Art. 10 (5) German Banking Act (KWG).
Repayments of profit-sharing certificates are subordinate to
the claims of other creditors, but take priority over distributions
to shareholders.
If the distributable profit is not sufficient for a distribution to
be made on the profit-sharing certificates, the distribution is
reduced in accordance with the relevant conditions of the profitsharing
certificates.
Under the conditions of the profit-sharing certificates, the
servicing of interest and repayment claims arising from the
profit sharing rights is linked to the Bank’s distributable profit
(not dividend payments). In accordance with the conditions
imposed by the European Union and under the agreements
with the Financial Market Stabilisation Fund (SoFFin), the
release of reserves or special reserves under Art. 340g HGB to
service profit-related equity instruments if a net loss is
reported for the year. This means that there will be no coupon
payments on Commerzbank Aktiengesellschaft profit-sharing
certificates for 2011 unless there is a legal obligation to do so
even without releasing reserves or dissolving the Fund for
General Banking Risks. A reduction in the book value of the
profit-sharing certificates was prevented by the release of
reserves permitted under the SoFFin agreements. The
following table shows the outstanding profit-sharing
certificates at the end of the financial year:
€m Interest rate in % Maturing on 31.12
Profit-sharing certificate WKN DR2U70 632 5.39 2015
Registered profit-sharing certificate WKN 422785 50 7.53 2014
Registered profit-sharing certificate WKN 422720 25
707
7.56 2014