Prospectus - Notowania

The following table shows exposure to the conduits of which the Group is sponsor, viz. Arabella Finance Ltd., Salome
Funding Ltd., Black Forest Funding Corp. (customer conduits) and Bavarian Universal Funding Corp. (arbitrage conduits).
Exposures sponsored by the Group
CONSOLIDATED INTERIM REPORT
AS AT SEPTEMBER 30, 2009
Amounts as at
(€ thousand)
09.30.2009 31.12.2008
Balance sheet exposures 4,053,221 5,268,124
- Conduits consolidated 4,053,221 5,268,124
Credit facilities 1,840,173 1,775,512
- Conduits consolidated 1,840,173 1,775,512
The lines of credit shown are the difference between total credit lines granted and the amount of commercial paper
underwritten by the Group. This figure is the additional risk exposure incurred by the Group and arising from commercial
paper purchased by third parties and commitments to purchase further assets under the program.
Cash exposures are commercial paper purchased by the Group. These exposures are fully consolidated and therefore not
visible in the consolidated accounts.
Due to the activity performed, the Group bears most of the risk and receives most of the return on conduit business and also
has control of the conduits.
Consequently, as required by IAS 27 and SIC 12, we have consolidated the above-listed SPVs.
The ABCP conduits are consolidated as are some of the second or further level vehicles that IFRS consolidation standards.
The following are recognized in the consolidated Accounts:
- loans by the ABCP conduits to the underlying purchase companies, where there are non-consolidated subordinated-
level vehicles, and
- the assets held by the subordinated purchase companies, where these are consolidated.
Redstone Mortgages Plc was consolidated during the financial year on fulfillment of the conditions prescribed by the above-
mentioned SIC 12 (see also Section 3 – Consolidation Procedures and Scope).
This vehicle is funded by a second-level purchase company of Salome Funding Ltd., consolidated at 31 December 2008.
Line-by-line consolidation of Redstone Mortgages Plc’s assets meant that they were recognized directly in the consolidated
financial statements, in place of the funding previously provided to it by the above subsidiaries, now eliminated on
consolidation.
Redstone Mortgages Plc’s assets mostly comprise a warehousing portfolio of UK mortgages and are recognized under Loans
and receivables with customers, with a carrying amount of €1,460,826 thousand. Valuations performed in the financial year,
inter alia for the purposes of first consolidation, which were complicated by the difficult economic situation, led to charges
amounting to €122,116 thousand of which €72,427 thousand were write-downs due to impairment.
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