NORD/LB Asset Backed Finance
NORD/LB’s Asset Backed Finance (“ABF”) team was established in 2000 as part of the bank’s New York Branch and is comprised of well-seasoned, multilingual professionals with a passion for securitization. Such an experienced, well-rounded and dedicated team is key to the execution and long-term success of securitization transactions and NORD/LB’s ABF team members are proficient in all aspects of the business. This includes originations and structuring with close cooperation with rating agencies, portfolio management, issuance and investor relations.
The ABF team acts as lead manager, arranger or participant in transactions financing custom-made $40 to $300 million securitization transactions spanning multiple jurisdictions and currencies worldwide. The customized financing solutions are based on long-established rating agency criteria and take into account customers' unique business needs, offering a highly flexible utilization of working capital. The team’s primary target group for such transactions are European and German corporates, in line with NORD/LB’s core business strategy.
The refinancing of NORD/LB’s securitization transactions happens through its special purpose vehicle “Hannover Funding Company LLC (“HFC”)”. The bank utilizes HFC to issue Asset Backed Commercial Paper and place them in the capital market. Customers thereby get to enjoy the advantages that come with it: low cost of funds, yet customized solutions allowing for very flexible utilization.
Hannover Funding Company LLC
Established in 2000, Hannover Funding Company (“HFC”) is a bankruptcy-remote special purpose vehicle which purchases notes and loans that are backed by receivables pools from predominantly European corporate customers. However, the pools themselves are highly granular and geographically well diversified between Asia, the United States and Europe. The nature of the individual receivables depends on the customers’ business and can arise from trade, leases (including auto and equipment leases), auto loans and consumer loans. Hence, HFC has no specific industry or geographical focus, but is generally geared towards well-structured transactions of high credit quality. Such transactions typically have one to three year commitments which can be renewed annually and are structured to a minimum “A” level in line with rating agency criteria.
HFC holds ratings from Moody’s, Fitch and DBRS, based upon the high quality of the underlying assets and the full liquidity support by NORD/LB. This allows the vehicle to issue Asset Backed Commercial Paper and place them in the capital market for the short- to mid-term cash management of both institutional and corporate investors. Investments can be made in US Dollars, Euros and Great British Pound.
Projects are among the most complex and challenging transactions to finance because a successful structure must be fully consistent with the fundamental features of the project.