NORD/LB places further tranche of Northvest transaction with investors
NORD/LB Norddeutsche Landesbank has placed a further tranche of its “Northvest” loan portfolio transaction with institutional investors. The Northvest platform enables institutional investors to invest directly in the bank’s credit-based business model. In March 2014, the bank placed a securitisation tranche of its loan portfolio with institutional investors for the first time.
NORD/LB expects by the now-completed further outplacement of a tranche of € 103 million and the associated transfer of risk to reduce its total risk exposure amount by € 1.3 billion. This will generate a positive effect of 0.2 to 0.3 percentage points on the Common Equity Tier 1 capital ratio (CET 1).
The underlying reference portfolio of the transaction has a volume of € 11.0 billion. The portfolio contains credit business from the four asset classes aircraft, renewable energies, commercial real estate and German SMEs (small and medium-sized enterprises). Thanks to the now-completed outplacement, credit risks from the “First Loss” tranche are covered by international institutional buy-and-hold investors. The parties have agreed to maintain confidentiality about the details of the transaction.
NORD/LB acted as the Lead Arranger for the transaction. NORD/LB was supported by Caplantic Alternative Assets GmbH in the placement and structuring of the transaction, who post-closing will also take on the roles of Reporting and Risk Management. Caplantic GmbH is based in Hanover and is a joint venture between NORD/LB, Talanx AG and Bankhaus Lampe.
With total assets of € 175 billion, NORD/LB Norddeutsche Landesbank is one of Germany’s leading merchant banks. Its core business segments include structured finance in the energy and infrastructure sector, ship and aircraft finance, corporate client business, commercial real estate finance, capital market business and private and commercial client business. The bank has headquarters in Hanover, Braunschweig and Magdeburg as well as offices in Düsseldorf, Hamburg, Munich, Schwerin and Stuttgart. Outside Germany, NORD/LB is active in Luxembourg with a covered bond bank (NORD/LB Covered Bond Bank) and also has offices in London, New York, Singapore and Shanghai.
Caplantic GmbH is a joint venture between NORD/LB and Talanx AG and Bankhaus Lampe. As a regulated financial services provider, Caplantic has in-depth experience in the analysis and continuous risk monitoring for large alternative asset portfolios as well as the portfolio management of alternative asset investment funds. A portfolio of more than EUR 18 billion is currently being managed on the risk side. Additionally, the amount of private equity funds under administration exceeds an amount of EUR 4.5 billion. The focus is on the asset classes of private equity fund investments, infrastructure, aircraft, shipping, real estate, and corporates with major customers from the institutional segment and the banking sector in equal measure. Caplantic has offices in Hannover, Cologne and Hamburg.
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