Case Studies

Syndicated loan of EUR 2,487,000,000 agreed for FBB

The federal states of Berlin and Brandenburg each own 37% of Flughafen Berlin Brandenburg GmbH (FBB) and the Federal Republic of Germany owns 26%.

The airport company has compiled and implemented a new financing concept for the capital required for the completion and medium-term expansion of the BER airport, which amounts to EUR 2.2 billion. It consists of a shareholder loan totaling EUR 1.107 billion, with a term of 20 years. The FBB is also borrowing an additional EUR 1.1 billion on the free capital market and, in connection with this, is also undertaking the early refinancing of the EUR 1.4 billion loan taken out in 2009, which was due to mature in 2019. As with the previous loan, the new loan will be 100% guaranteed by the shareholders (Berlin, Brandenburg and the Federal Republic of Germany).

A fixed rate loan to replace the syndicated loan and a variable tranche approach, which is flexible until 2020, were established as the best possible solution for the external finance concept. Both tranches have a term of 10 years. The syndicate, which consists of 7 international banks, acts under the syndicate leadership of NORD/LB.

First-time purchase of receivables in China

NORD/LB has successfully structured a purchase of receivables in China for a middle-market German corporate customer.

In December 2016 a framework agreement was entered into with the customer’s Chinese subsidiary that permits the subsidiary to engage in the revolving sale of receivables from trade receivables denominated in renminbi to a Chinese buyer. The purchase price is also disbursed in renminbi. This deal was enabled by a structure that is tailored to the specific features of Chinese law and invoicing practices and that sees the German-domiciled customer assume liability for its Chinese subsidiary. The debtor’s default risk is assumed by NORD/LB, meaning that the receivables sold are deducted from the customer’s group balance sheet. The monthly purchases are settled by NORD/LB’s Shanghai branch, which also guarantees local personal contact with the parties involved.

€ 60 m syndicated loan arranged for Montana Tech Components AG

In addition to the € 135 m SSD, in winter 2016, NORD/LB together with a banking consortium arranged a syndicated loan with a volume of € 60 m and, therefore, extended and increased the existing financing.

The syndicated loan is for general corporate financing purposes as well as for the refinancing of existing loans.

The Montana Tech Group is a technology-oriented industrial group and has a broadly diversified business model that is divided into four operating divisions: Aerospace Components, Metal Tech, Energy Storage (VARTA AG) and Industrial Components. Overall, the group commands leading market positions in fast-growing markets and focuses on key technologies. In view of its wide diversification MTC has only a low degree of cyclicality.

€ 135 m Schuldscheindarlehen (bonded loan) arranged for Montana Tech Components GmbH

In autumn 2016, NORD/LB together with a banking consortium arranged a Schuldscheindarlehen (SSD) with a volume of € 135 m and, therefore, the fourth very successful transaction of this type.

The SSD is for general corporate financing purposes and the refinancing of existing loans.

Montana Tech Components GmbH acts as a financing and management company for the Montana Tech Group. The 100% shareholder of MTC is the Montana Tech Components AG, which was founded in 2006. The Montana Tech Group is a technology-oriented industrial group and has a broadly diversified business model that is divided into four operating divisions: Aerospace Components, Metal Tech, Energy Storage (VARTA AG) and Industrial Components. Overall, the group commands leading market positions in fast-growing markets and focuses on key technologies. In view of its wide diversification MTC has only a low degree of cyclicality.

Acquisition financing for KSBG for the full takeover of STEAG/ STEAG’s debut promissory note (“Schuldscheindarlehen”) for growth

 KSBG Kommunale Beteiligungsgesellschaft GmbH & Co. KG, a consortium of municipal utilities from North Rhine-Westphalia (NRW), which had already acquired a 51 percent stake in STEAG GmbH from Evonik in 2011, is now the sole shareholder of STEAG GmbH.

NORD/LB was involved in financing the purchase price for the remaining shares as well as in replacing the residual financing of the initial 51% with acquisition financing. An additional eight consortium partners were attracted into this deal. At the same time, a promissory note (“Schuldscheindarlehen”) was issued on behalf of STEAG GmbH. With this capital markets-based financing instrument, STEAG is now well positioned for further investments in the power generation potential in the renewable energies area. Moreover, the financing has strengthened its competitiveness. The capital market transaction was met with high demand from investors and was oversubscribed.

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