HSH Nordbank €1.64 billion loan portfolio sale

27/1/2017
Loan portfolio sale

€ 1.64 billion

$ 1.755 billion

Announced

27/1/2017


Overview:

  • HSH Nordbank sold a €1.64 billion loan portfolio in preparation for its privitisation in 2018.
  • Australian investor Macquarie bought the largest portion of the debt, €800 million in aviation finance loans.
  • Bank of America Merril Lynch acquired €540 million in commercial real loans.
  • The remaining €300 million was purchased by various parties which chose to remain anonymous. 
  • German Landesbank HSH was bailed out by German federal states Hamburg and Schleswig-Holstein in 2009.
  • In 2016 the European Commission agreed a state aid deal with the lender's owners on the condition the bank would be sold by February 2018.
  • In preparation for the sale, HSH has been selling loans to improve its capital adequacy ratio, including a €5 billion shipping loan portfolio, which was transferred to its two state owners in 2016.
  • The transaction is subject to regulatory approval and is expected to close in the second quarter of 2017.

Ben Naylor - Regional Editor

Jurisdiction:

Germany

Deal type:

Loan portfolio sale

Practice area:

Banking

Industry sectors:

Banking
Aviation
Real estate


Firms:

Party: Bank of America Merrill Lynch (Acquirer)