DVB closes first aircraft asset backed securitisation

Frankfurt/Main, 23 February 2015 – On Friday, 20 February 2015, DVB Bank
SE’s (DVB) Aviation Investment Management team, in its capacity as
investment advisor to the Deucalion Aviation Funds, completed the sale of
20 aircraft valued at approximately US$814 million to a special purpose
exempted company which, together with another limited liability company
subsidiary, co-issued US$667 million of Reg. S/Rule 144A DTC eligible notes
(the Notes) with the concurrent direct placement of more than 90% of the
equity to a new investment partner for DVB.

The bond format offering, introduced a number of structural innovations,
and is rated by Standard & Poor’s Ratings Services (S&P) and Kroll Bond
Rating Agency (KBRA). It was significantly oversubscribed and widely
distributed to investors achieving the tightest pricing on an aircraft
Asset Backed Securitisation (ABS) transaction since the most recent
financial crisis.

The Notes were issued in three classes:

ABS – debt structure – 144A/Regulation S – TC format

A-1 545,000,000 4.250 A(sf)/A(sf) 5.3 7.0 66.9
B-1 84,000,000 5.125 BBB/BBB 5.3 7.0 77.2
C-1 38,000,000 8.500 BB/BB 3.5 7.0 81.9

The Notes are backed by a portfolio of 20 aircraft on lease with 13
airlines, the vast majority of which are flag carriers. The portfolio has a
weighted average age of 5.6 years and a weighted average lease term
remaining of 6.2 years. The portfolio is predominantly composed of Airbus
aircraft and is unique for recent aircraft ABS deals where by value 55% of
the portfolio is widebody aircraft.

DVB’s Aviation Asset Management team will be the servicer of the portfolio.

Stephan Sayre, Managing Director of DVB’s Aviation Investment Management
team commented:

“While the sale of assets is ‘normal course of business’ for our Investment
Management business, the 144A placement of the debt and majority sale of
the equity is a landmark transaction for DVB and testimony to the strength,
depth and quality of the whole DVB Aviation platform which has been
comprehensively endorsed by rating agencies and institutional investors
alike. We expect to become a repeat issuer in this asset class.”

On the 144A bond placement, BNP Paribas acted as the sole structuring agent
and BNP Paribas, Goldman Sachs & Co. and DVB Capital Markets as joint
bookrunners.

On the equity placement, BNP Paribas acted as sole structuring agent and
placement agent.

DVB Bank SE London Branch is liquidity facility provider to the bond
holders.

Clifford Chance acted as lead legal counsel to DVB with Pillsbury Winthrop
Shaw Pittman LLP representing the joint bookrunners.

The Notes
The Notes were offered to qualified institutional buyers under Rule 144A
under the United States Securities Act of 1933, as amended (the Securities
Act) and to persons outside the United States under Regulation S. The Notes
will not be registered, and, unless so registered, may not be offered or
sold in the United States except pursuant to an exemption from the
Securities Act, or in a transaction not subject to, the registration
requirements of the Securities Act and applicable state securities laws.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the Notes
in any jurisdiction in which such offer, solicitation, or sale would be
unlawful prior to registration or qualification under the securities laws
of any such jurisdiction.