23 August, 2004 LAWFUEL – Best for legal news, law news, law articles – See LawFuel.com International legal practice Allen & Overy advised Landesbank Hessen-Thüringen and Bayerische Landesbank on the creation of innovative platforms for the synthetic pooling of credit risks. Allen & Overy was instructed as sole legal adviser to structure the platform and prepare the documentation and also advised on the first transactions on the new platforms.
The innovative transaction structures (one for Hesse-Thuringia and one for Bavaria) provide savings banks with a platform for pooling credit risks synthetically via an Irish special purpose vehicle. This allows the individual savings bank to replace high individual or industry-related risks with a share in a joint portfolio of credit risks. The derivative instruments used include credit default swaps and basket credit default swaps, as well as (in the case of the Bavarian platform) basket credit linked notes. The first transactions on the new platforms included 13 savings banks in Hesse-Thuringia and nine Bavarian savings banks.
Allen & Overy’s team was led by Frankfurt partner Okko Hendrik Behrends and senior associate Frank Bierwirth, with Frankfurt partner Dr. Asmus Mihm advising on the tax aspects.
Okko Hendrik Behrends comments: “The fact that we have been chosen as legal adviser on this groundbreaking project for the German savings banks sector underlines yet again the position of Allen & Overy as one of the leading derivative practices”.