August 27, 2014
Commerzbank agrees on the sale of nine container vessels
Commerzbank has signed an agreement with a buyer and the owners of nine container vessels financed by the bank on the sale of the ships. The proceeds from the sale will be utilised for the redemption of loans with a total volume of approximately 160 million euros (216 million US dollars). The total portfolio is being transferred in full to the buyer, a joint venture company founded by KKR Special Situations Group of Kohlberg Kravis Roberts & Co. L.P. (USA) and Borealis Maritime Ltd. (UK); no financings will remain with Commerzbank. Confidentiality has been agreed upon further details of the contractual agreements.
Through the sale of this portfolio of smaller container vessels the risk profile in the Non-Core Assets (NCA) Deutsche Schiffsbank division is being further improved. The volume of non-performing loans in the container sector has thus decreased since the end of June 2014 in the Non-Core Assets (NCA) Deutsche Schiffsbank division by approximately 8.4 per cent. “This transaction is the second successful capital markets portfolio transaction in Deutsche Schiffsbank unit within the space of one year, and this despite an ongoing difficult market environment in the international shipping markets,” said Stefan Otto, divisional board member NCA Deutsche Schiffsbank. As recently as December 2013 Commerzbank had sold a credit portfolio encompassing 14 chemical tankers.
The transaction does not have any material impact on the income statement of the NCA segment in the third quarter of 2014. With the transaction Commerzbank is moving forward with the value-preserving reduction in the NCA segment. In the framework of the run-down strategy of the NCA segment, in the first seven months of 2014 it was possible – in addition to natural credit maturities – to sell a total of approximately 70 ships through individual transactions with a total credit volume of approximately 530 million euros. “These transactions are testimony to the ongoing high run-down velocity of the Ship Finance portfolio,” said Otto.
*****
Press contact
Martin Halusa +49 69 136 85331
Thomas Kleyboldt +49 40 36832190
*****
About Commerzbank
Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate customers as well as institutional investors the banking and capital market services they need. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks and is on its way to become a modern multichannel bank. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate customers. In 2013, it generated revenues of more than EUR 9 billion with approximately 54,000 employees on average.
*****
Disclaimer
This release contains statements concerning the expected future business of Commerzbank, efficiency gains and expected synergies, expected growth prospects and other opportunities for an increase in value of the company as well as expected future net income per share, restructuring costs and other financial developments and information. These forward-looking statements are based on the management’s current expectations, estimates and projections. They are subject to a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from any future results and developments expressed or implied by such forward-looking statements. Commerzbank has no obligation to periodically update or release any revisions to the forward-looking statements contained in this release to reflect events or circumstances after the date of this release.
Download Press Release (PDF, 128 kB)
Contact
- Phone: +49 69 136-25565
- send e-mail
