Nord/LB Sells Shipping Loans for USD2.9bln

Maritime Activity Reports, Inc.

April 12, 2019

Image: NORD/LB

Image: NORD/LB

German lender Norddeutsche Landesbank (Nord/LB) has completed the sale of a EUR 2.6 billion (USD2.9bln) shipping loan portfolio. The bank recently announced its withdrawal from shipping.

A US hedge fund Cerberus Capital Management took over the portfolio, which comprises of the 263-vessel book - known as "Big Ben" -  with a non-performing loan (NPL) portion of some 90%.

The transaction was closed on 9 April, in accordance with the signing of the purchase agreement dated February 2019, the German bank said. The bidding process was launched in autumn 2018 as part of the bank’s transformation program.

The parties agreed to maintain confidentiality about the terms of the transaction, said sources.

Upon completion of the transaction, the bank's NPL portfolio, which amounted toEUR 7.5 billion at the end of 2018, was reduced to around EUR 4.9 billion. The parties agreed to maintain confidentiality about the terms of the transaction.

The bank and its shareholders, which include regional savings banks, want to restructure NordLB in a way that complies with EU state aid rules that could force a complete sale.

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