Investors, including KKR Credit, acquire initial shipping portfolio of about USD 1.5 billion from NORD/LB
- NORD/LB partners with Investors on Shipping Portfolio Management Initiative
NORD/LB Norddeutsche Landesbank and KKR Credit have reached an agreement by which, subject to completion of certain conditions precedents, KKR Credit, together with a sovereign wealth fund (the “Investors”), will acquire a portfolio of performing and non-performing shipping loans originated by NORD/LB.
The initial portfolio with a total volume of about USD 1.5 billion will include up to 100 ships and would form the seed mandate for a shipping portfolio management company that the Investors will create simultaneously with the closing of this sale. This company is designed to be open for use by third party banks for their portfolio management. The sale is expected to close in the fourth quarter, 2016 and is expected to be structured as a securitisation with NORD/LB and the investors both acting as initial investors therein. The parties have agreed not to disclose the terms.
Dr. Gunter Dunkel, chairman of the Management Board of NORD/LB said: “The agreement reached with the Investors is a significant milestone for the bank as it continues to effectively manage its balance sheet through the ongoing shipping crisis. This initial sale clearly demonstrates the bank's ability to attract capital from internationally renowned investors and at the same time yields a very tangible reduction to the bank's shipping exposure. When this innovative transaction closes, it will be a significant contribution to reducing the bank's overall ship loan exposure from €18 billion to €12 to €14 billion."
Johannes P. Huth, Head of KKR Europe, Africa and Middle East said: “We are grateful for the collaboration with NORD/LB and our investing partners in developing and pioneering this initiative. This transaction is in line with KKR’s focus on investing in and managing banks’ non-core and under-performing assets.”
Contacts at NORD/LB:
Dr. Thomas Klodt, +49 (0) 511 361-2758, firstname.lastname@example.org
Jan-Peter Hinrichs, +49 (0) 511 361-9934, email@example.com
Contacts at KKR:
UK & International: Finsbury, Victor Mallet, +44 (0) 20 7251 3801, firstname.lastname@example.org
Germany: HERING SCHUPPENER, Regina Müller, +49 (0) 69 92 18 74 84, email@example.com
With total assets of € 182 billion, NORD/LB Norddeutsche Landesbank is a leading German business bank. Its core business segments include structured financing in the energy and infrastructure sector, ship and aircraft financing, corporate customers business, commercial real estate financing, capital market business and private and commercial customers. The Bank has headquarters in Hanover, Braunschweig and Magdeburg, as well as branches in Düsseldorf, Hamburg, Munich, Schwerin and Stuttgart. NORD/LB is represented outside of Germany by a Pfandbrief bank (NORD/LB Covered Bond Bank) in Luxembourg and by branches in London, New York, Singapore and Shanghai.
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world‐class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners' capital and brings opportunities to others through its capital markets business. References to KKR's investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR's website at >www.kkr.com and on Twitter >@KKR_Co.
NORD/LB Corporate Communication