Berenberg Bank News

Top national lenders Deutsche Bank and Commerzbank are stepping up efforts to offload distressed shipping loans, finance sources said, as the German banking system grapples with $100 billion in toxic debt from the sector. While the shipping sector is showing signs of recovery after a near-decade long downturn, it is still struggling with an excess of ships and sluggish growth in global trade, which has led to some shipping companies going to the wall. German banks, once global leaders in ship financing, have written off billions of euros in loans to shipping companies, while other European lenders - facing capital pressure from regulators - have quit the business.

The collapsing maritime shipping industry is stoking another European banking headache, this time in economic powerhouse Germany, says a report in WSJ. While the Commerzbank, Germany’s second largest bank, reported earnings, warned that its losses on shipping loans could be as high as EUR600 million ($641 million) this year after nearly doubling last year to EUR559 million. Stephan Engels, Commerzbank’s chief financial officer (CFO) admitted that there was little immediate prospect of recovery. “Our view for 2017 is just as critical as it was for 2016, as far as shipping overall is concerned,” he said. “We still have -particularly for container ships – more new vessels coming on to the market than are being scrapped.

Japanese financial services firm Orix Corp said it was looking to buy more shipping loans in Europe after confirming on Monday that it would purchase $289 million worth of such debt from Royal Bank of Scotland in a landmark deal. European banks, major lenders to the shipping industry, have been reducing exposure to the sector because of the slump in the shipping industry and to meet stricter banking rules. Orix said it had agreed to acquire the loans from RBS, confirming a Reuters story on Friday, in what is likely to be the first major purchase of shipping loans in Europe by a Japanese player in recent years. "Orix views these current market conditions as a favourable investment opportunity," it said in a statement.

Japanese financial services firm Orix Corp has agreed to buy $290 million (272 million euros) worth of Greek shipping loans from Royal Bank of Scotland (RBS), Reuters reported quoting sources with direct knowledge of the deal. Reuters reported last month the British bank was close to selling at least $600 million worth of shipping loans to financial institutions including Orix. Germany's Berenberg Bank would purchase around $300 million of loans. Most of the loans Orix is buying from RBS are of investment grade and made to Greek borrowers, said the sources, who were not authorised to discuss the matter publicly. The sale is considerably smaller than the original $3bn deal to sell the whole of RBS' Greek shipping business to Orix…

Royal Bank of Scotland has concluded agreements to sell at least $600 million worth of shipping loans from its portfolio as part of efforts to exit the sector, sources with direct knowledge of the deal told Reuters on Friday. RBS, which is more than 70 percent state owned, is in the middle of a restructuring, which includes asset sales, job cuts and tackling multi-billion dollar charges to settle litigation and pay regulatory fines for past misconduct. The sources said Japanese financial services firm Orix Corp has agreed to buy $290 million worth of shipping loans from RBS, while separately Germany's Berenberg Bank would purchase around $300 million of loans. Spokespeople for RBS, Orix and Berenberg all declined to comment.

Royal Bank of Scotland is close to selling at least $600 million worth of shipping loans from its portfolio, two sources familiar with the matter told Reuters. RBS, which is more than 70 percent state-owned, is still in the throes of a restructuring, which includes asset sales, job cuts and tackling multi-billion dollar charges to settle litigation and pay regulatory fines for past misconduct. The sources said buyers of the various shipping loan tranches included Japanese financial services firm Orix Corp , Germany's Berenberg Bank, Bank of America Merrill Lynch and asset manager Davidson Kempner. Bank of America and Berenberg declined to comment. Orix could not be reached for comment. Davidson Kempner and RBS declined to comment.

Volume of EUR 250 million / Coupon at 7.75% / Bond was several times oversubscribed. Hapag-Lloyd AG has successfully placed a bond with a volume of EUR 250 million with institutional investors. The bond with a maturity of five years has a coupon of 7.75% and was several times oversubscribed. The emission price was 100.00%. The proceeds of the bond will be used for general corporate purposes including refinancing of outstanding indebtedness (approx. EUR 200 million), and for early redemption of parts of the existing Senior Notes due 2015 (approx. EUR 50 million).

DUBLIN, IRELAND, Mar 15, 2011 (MARKETWIRE via COMTEX) --TBS International plc (NASDAQ: TBSI) announced today its financial and operating results for the fourth quarter and year ended December 31, 2010. Joseph E. "The TBS results for the fourth quarter 2010 reflect the ongoing downward pressure on dry cargo freight rates that have continued into the first quarter of 2011, as evidenced by the Baltic Dry Indices. "The Baltic Dry Index ('BDI') which was at 2,446 on September 30, 2010 descended to 1,773 on December 24th (the last reporting date in 2010) and was at 1,559 on March 14, 2011.