Deutsche Bank AG has agreed to sell a portfolio of nonperforming shipping loans, with a notional value of $1 billion, to investors Oak Hill Advisors and Varde, Reuters reported June 14, citing a source.
Finance sources said that the portfolio is expected to include some performing loans from ship owners rather than just bad debt, Reuters reported. The purchase price, however, remains unclear.
The move forms part of the German lender's restructuring, the newswire wrote, adding that its exposure to the shipping sector was at €4.1 billion as of March-end. One source said that, following the sale, Deutsche will only have a small number of shipping NPLs remaining, and is set to begin ramping up its exposure to the sector again.
Meanwhile HSH Nordbank AG, once the world's biggest ship financier which became saddled with bad shipping debt, is looking to purchase shipping loans and making new investments in the industry, Reuters noted.