Orix Corp News

Germany's No.2 lender DZ Bank is finalizing the sale of parts of its troubled transport financing division DVB Bank months after struggling to sell the whole business, two sources familiar with the matter said.DZ Bank has had to make large provisions for bad loans in shipping finance, which is among the reasons for the sale process.The sources, who declined to be identified due to the sensitivity of the matter, said DZ Bank, which is also the umbrella organisation of German co-operative bank chain Raiffeisen-Volksbanken…

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.

Hyundai Merchant Marine Co. (HMM), is resurrecting an asset-sale plan in an effort to stave off bankruptcy as it reels from a crisis in the shipping industry brought on by slowing global trade, says WSJ. The Seoul-based company plans to seek another buyer for its majority stake in stock brokerage Hyundai Securities Co Ltd and other shipping facilities to raise cash and repay maturing debt. Korea's 21st largest family-controlled conglomerate, which is widely known for its now-defunct North Korea tourism project, has pledged to do everything it can to raise cash to bolster HMM's deteriorating bottom line. HMM's talks to sell its entire 22.4 percent stake in the brokerage to Japan's Orix Corp for about 647 billion won ($535.83 million) fell apart late last year, the spokesman said.

South Korea's Hyundai Merchant Marine Co Ltd (HMM) plans to seek another buyer for its majority stake in stock brokerage Hyundai Securities Co Ltd , an HMM spokesman said on Monday. HMM's talks to sell its entire 22.4 percent stake in the brokerage to Japan's Orix Corp for about 647 billion won ($535.83 million) fell apart late last year, the spokesman said. The plan needs to be approved by HMM's creditor banks, the spokesman added. Reporting by Joyce Lee

South Korea's Hyundai Merchant Marine Co Ltd (HMM) will sell a major stake in stock brokerage Hyundai Securities Co Ltd for 647 billion won ($579.84 million) to a special purpose company set up by Japan's Orix Corp, an HMM spokesman said on Friday. Hyundai Merchant Marine will sell its entire 22.4 percent stake in the stock brokerage to the special purpose company, HMM said in a separate regulatory filing earlier on Friday. The sale is part of parent Hyundai Group's attempts to sell assets to cut debt, first announced in 2013. Reporting by Joyce Lee