Obtains majority of NORD/LB's aircraft financing portfolio through our site
In a strategic move, Deutsche Bank has announced the acquisition of EUR 1.67 billion worth of loans from Norddeutsche Landesbank (NORD/LB)'s aircraft financing portfolio. The sale, which is expected to be finalised in the second half of 2024, marks a significant expansion for Deutsche Bank in the aviation sector.
The loans, secured by commercial passenger aircraft, are part of NORD/LB's extensive aircraft portfolio, which currently comprises around 300 financed aircraft and engines. The competitive bidding process for the loans attracted high demand, reflecting the sector's ongoing interest in aviation financing.
The loans are to a diverse range of lessors and airlines, underscoring the broad reach of the portfolio. The acquisition was facilitated through Deutsche Bank's Global Credit Financing & Solutions (GCFS) business, a division with a diverse lending portfolio that includes renewable energy finance, energy transition finance, infrastructure and transportation finance, and asset-backed financing.
Ross Duncan, Co-Head of the Global Transportation Finance team at Deutsche Bank, expressed his support for the deal. "This acquisition offers Deutsche Bank an opportunity to acquire high-quality loans with an attractive return profile," he said. The deal, he added, plays to Deutsche Bank's strengths and deep experience in the sector.
However, both parties have agreed not to disclose the purchase price. Completion of the purchase agreement is also subject to approval by the antitrust authorities.
Deutsche Bank, a leading global bank with a significant presence in corporate and investment banking, often engages in large-scale financial transactions, including asset purchases and divestitures. Meanwhile, NORD/LB, a German commercial bank, has been involved in various financial transactions, including acting as a lender in different acquisitions.
This acquisition, if finalised, would likely be part of a broader strategy by Deutsche Bank to expand its asset base or manage risk within its portfolio. For precise details, checking financial news or official statements from the banks involved would be necessary.
The acquisition of EUR 1.67 billion worth of loans from NORD/LB's aircraft financing portfolio, primarily secured by commercial passenger aircraft, represents a strategic venture for Deutsche Bank in the aviation sector, extending their lending portfolio within the industry. The transaction, involving a diverse range of lessors and airlines, underscores the appeal of aviation financing, as demonstrated by the competitive bidding process.
