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Deutsche Bank Acquires Aircraft Loans from NordLB

NordLB due to withdraw from the aircraft financing business entirely

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  • Written by  Banking Exchange staff
 
 
Deutsche Bank Acquires Aircraft Loans from NordLB

Deutsche Bank, Germany’s largest bank with over €1.3 trillion in assets, has acquired €1.67 billion in aircraft loans from Norddeutsche Landsebank (NordLB) for an undisclosed price.

The transaction includes loans to lessors and airlines all backed by commercial passenger aircraft.

The acquisition strengthens Deutsche Bank’s strategic focus on sectors including infrastructure, transportation and asset-backing financing.

It also forms part of NordLB’s strategic realignment, which involves withdrawing from the aircraft financing business to focus more on the bank’s core business areas.

As part of the implementation, NordLB has planned for employees working within the aircraft financing sector to move to equivalent positions within the bank.

Jörg Frischholz, CEO of NordLB, said:  "We are now taking the next logical step and focussing even more on enabling the energy transition our growth areas such as renewable energies, commercial real estate and corporate customers, which we can strengthen with the capital released.”

NordLB’s current aircraft financing portfolio is worth €2.75 billion and encompasses approximately 300 financed aircraft and engines.

Following the acquisition, NordLB will cease any new business activities in the aircraft financing sector and gradually phase out the remaining part of the portfolio, worth around €1.1 billion.

The transaction was secured through a competitive bidding process, with Deutsche Bank emerging as a winner against a large number of national and international parties.

Finalization of the acquisition is expected to occur in the latter half of this year.

The transaction, which was secured through a competitive bidding process, includes loans to a diverse range of lessors and airlines backed by commercial passenger aircraft.

NordLB’s current aircraft financing portfolio is worth €1.67 billion and encompasses approximately 300 financed aircraft

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