Second Synthetic Transaction Securitising Risks Related to Danish Residential Mortgage Loans through KfW's PROVIDE Platform

Frankfurt (ots) - Danske Bank A/S (Danske Bank) and KfW
Bankengruppe (KfW) have agreed to enter into a second securitisation
transaction for Danish residential mortgage loans under KfW's PROVIDE
securitisation platform. Barclays Capital acts as sole arranger and
lead manager of the transaction. Danske Markets acts as co-manager.

The underlying reference portfolio of the transaction, which is
named "PROVIDE BRICKS 2007-1", comprises about 34,500 Danish
residential mortgage loans with a total volume of EUR 4 billion. The
average indexed loan-to-value of the loans is around 52%. The
residential mortgage loans are originated by Realkredit Danmark A/S
(RD), the consolidated subsidiary of Danske Bank and are serviced by
RD in its capacity as the Servicer.

PROVIDE BRICKS 2007-1 is the first securitisation transaction to
be carried out via the PROVIDE platform this year. Since the PROVIDE
platform was launched in 2001, 38 transactions with a total volume of
more than EUR 67 billion have been conducted via KfW. Danske Bank had
securitized a residential mortgage loans portfolio via KfW in
December 2005 for the first time; the portfolio then had a volume of
EUR 3 billion.

For the securitisation, KfW will assume the credit default risk of
the underlying reference portfolio. The risk is placed in the
international capital and swap markets by the lead manager Barclays
Capital and the co-manager Danske Markets.

EUR 144 million of the total EUR 4 billion is secured through
Credit Linked Notes (CLN's) issued via Provide Bricks Mortgages plc.
The CLN's, which have been priced last Friday, are listed on the
Irish Stock Exchange. The remaining risk of EUR 3.85 billion is
covered by a credit default swap (CDS).

The first loss piece of about EUR 4 million remains with Danske
Bank.

For Danske Bank this securitisation of mortgage loans is an
adequate capital management instrument that enables the bank to
reduce its credit risk and therefore to optimize the use of its
capital base. The KfW PROVIDE Programme offers banks the opportunity
to securitise the credit risks from residential mortgage loans in a
highly standardised manner and, given the reduced equity charge of
the securitising banks, ensures that this type of loan remains
available on a broad scale.

**The complete Press Release you find on our homepage:
http://www.kfw.de/EN_Home/Presse/press_live.jsp

Profile:

Danske Bank is the largest bank in Denmark and a leading player in
the Nordic financial markets and offers a wide range of financial
services, including life insurance, mortgage finance, asset
management, brokerage, real estate and leasing services. With the
purchase of Sampo Bank in February 2007, Danske Bank took a
significant position in the banking markets in Finland, and thereby
became a true pan-Nordic player. In total the Danske Bank Group
serves almost 4.9 million retail customers in the Nordic region and
in Ireland. It also has a large number of corporate clients,
particularly in northern European markets. Danske Bank is one of the
largest mortgage providers in the Danish market through its Mortgage
Credit Finance division, RD. RD funds its mortgage lending in Denmark
through the issuance of mortgage bonds, which all carry an AAA rating
from Standard & Poor's and Aaa from Moody's.

KfW Bankengruppe gives impetus to economic, social and ecological
development worldwide. With its long-term, low-interest loans KfW
promotes small and medium-sized enterprises and business start-ups,
among others. It gives credit institutions the opportunity to
securitise credit risks under a highly standardised scheme. The
equity relief thus achieved creates greater scope to grant new loans.
KfW has developed securitisation platforms for SME loans (PROMISE)
and for Residential Mortgage Loans (PROVIDE) in 2000 and 2001
respectively. In addition, KfW stimulates innovations and the equity
capital market, advances environmental protection as well as
education, and encourages the expansion of municipal infrastructure.
KfW does not limit its role to investment finance inside Germany as
it is also engaged in export and project finance, the promotion of
developing countries and advisory and other services.

Press Contact:

Danske Bank:
Cato Baldvinsson - Phone: +45 3344-2402 -
E-Mail: cbal@danskebank.dk

KfW Bankengruppe:
Nathalie Drücke - Phone: +49 (0) 69 7431-2098
E-Mail: nathalie.druecke@kfw.de

Originaltext: KfW
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Pressekontakt:
KfW, Palmengartenstraße 5-9, 60325 Frankfurt
Abteilung Kommunikation (KOM)
Tel. 069 7431-4400, Fax: 069 7431-63266,
E-Mail: presse@kfw.de, Internet: www.kfw.de


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