SMBCE securitises UK PPP/PFI Loan Portfolio via KfW

Frankfurt (ots) - Sumitomo Mitsui Banking Corporation Europe
(SMBCE, London) and KfW Bankengruppe (KfW, Frankfurt) will shortly
close the SMART PFI 2007 synthetic securitisation transaction of a
PPP/PFI loan portfolio. The deal is co-arranged by Deutsche Bank AG,
London Branch.

SMBCE is an active arranger in the PFI lending market. Following
their first PFI/PPP portfolio securitisation via KfW in December
2005, SMBCE has originated a second portfolio of 46 senior secured
loans from 34 UK PFI/PPP projects. The loans in the portfolio are
used to finance different types of hospitals and healthcare
facilities (41.4%), schools (38.0%) and a wide variety of other
public infrastructure projects (20.6%).

Part of the risk on the SMBCE balance sheet of this GBP388.8
million (EUR 567 million) portfolio has synthetically been
transferred to international investors via KfW by means of a Credit
Default Swap and Credit Linked Notes. The OTA is retained by SMBCE.
The senior risk (Senior Swap) and the other cash tranches were
successfully placed with investors by Deutsche Bank. The deal has
been structured by Deutsche Bank and the Securitisation team of
SMBCE.

Capital Structure of SMART PFI 2007

***You find the complete press statement with the tabular overview
on our Homepage under www.kfw.de

KfW 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. The structure
of SMART PFI 2007 is a variant of the PROVIDE platform. SMART is the
fourth transaction intermediated by KfW that is backed by Public
Private Partnership loans. PPP/PFI transactions aim at using the
resources of the private sector to fund (and operate) public
infrastructure (e.g. hospitals, schools, transport, water supply,
etc).

Servicer and Co-Arranger SMBCE is part of Sumitomo Mitsui Banking
Corporation (SMBC) that was created on April 1, 2001 from the merger
of The Sumitomo Bank and The Sakura Bank. SMBC is the 9th largest
bank worldwide by asset size with nearly US$ 1 trillion in assets.
Headquartered in Tokyo, SMBC employs 20,000+ staff worldwide in more
than 40 different locations.

Co-Arranger and Lead Manager Deutsche Bank is a leading global
investment bank with a strong and profitable private clients
franchise. A leader in Germany and Europe, the bank is continuously
growing in North America, Asia and key emerging markets. With Euro
1,128 billion in assets and 68,849 employees in 73 countries,
Deutsche Bank offers unparalleled financial services throughout the
world. The bank competes to be the leading global provider of
financial solutions for demanding clients creating exceptional value
for its shareholders and people.

KfW Bankengruppe gives impetus to economic, social and ecological
development worldwide. With its long-term, low-interest loans KfW
Bankengruppe promotes small and medium-sized enterprises and business
start-ups, among others. In addition, the bank stimulates innovations
and the equity capital market, advances environmental protection and
encourages the expansion of municipal infrastructure. But KfW
Bankengruppe 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 Contacts:
SMBCE: Mark Gordon
Phone: +44 (20) 7786 1303 - E-Mail: mark_gordon@gb.smbcgroup.com

Deutsche Bank:
Stacey Coglan
Phone: +44 (20) 7545 8226 - E-Mail: stacey.coglan@db.com

KfW Bankengruppe:
Christine Volk
Phone: +49 (0) 69 7431-3867 - E-Mail: Christine.Volk@kfw.de

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