Jan 27 State-owned German moneylender HSH Nordbank confirmed on Friday it was marketing parts of its 3.2 billion-euro ($3.4 billion) loan portfolio and said it was in advanced talks to divest more.
HSH’s owners – the German states of Schleswig-Holstein and Hamburg together hold 85 percent – have to privatise the bank under European state-aid rules by the end of February 2018 and have been trying to offload parts of its business.
The moneylender said in a declaration it was selling a 1.64-billion-euro chunk of its loan portfolio, comprising around 800 million euros of aviation credits going to Australia’s Macquarie Group and around 540 million of commercial real estate credits being bought by Bank of America Merrill Lynch.
“The sale is another important landmark on our lane to change of ownership,” Chief Executive Stefan Ermisch said.
The transaction, which was labelled by Reuters on Thursday, will minor the ratio of HSH’s non-performing loans to its whole credit risk by around 1.3 percentage points, from a level of 17 percent at the end of September.
The sale still Requires regulatory approval and will likely close in the second quarter, HSH said.
“We are in talks that are already at an advanced stage to sell additional packages of this market portfolio,” Ermisch said in the announcement.