Depfa Bank to sell Deutsche Pfandbriefbank

German's Depfa Bank, which has a base in Dublin, plans to sell its German unit, Deutsche Pfandbriefbank, to help boost its credit rating and expand in the US.

The sale will free up core capital of around €1.3bn and Depfa expects the transaction to be completed by the end of the third quarter of 2004.

The bank said in a statement it expected the sale to be 'of considerable interest to potential buyers, since Deutsche Pfandbriefbank is a highly efficient, profitable and focused public finance institution'.

The German unit made up 54% of Depfa Bank's total assets in 2003.

It employs about 100 people, some of whom will continue working for Depfa while the rest will be employed by the new owner.

Two weeks ago Depfa reported Q4 profits in 2003 of €101m compared to €70m for the previous year.

Total revenue for the year came to €637m, up 56% on the 2002 figure.

The bank, which is registered in Ireland for tax purposes, organises public sector bonds, raises money for infrastructure projects in Europe, the United States and Asia, and offers investment banking advice to public bodies.

It is the second biggest provider of public finance in Europe.