Nord/LB: Savings banks agree to capital injection
The German savings banks have agreed to inject missing capital into the foundering Norddeutsche Landesbank (Nord/LB). According to an ad hoc announcement by Nord/LB and its subsidiary Deutsche Hypo, the owners of Nord/LB welcome a solution proposed by the savings bank umbrella organization DSGV, and intend to pursue it “as a matter of priority”. No details were disclosed about the agreement. According to insiders, €1.2bn is to come from the support fund of the state-owned banks (“Landesbanken”) and savings banks, as well as from the savings banks affiliated with Nord/LB. The state of Lower Saxony, the majority owner of Nord/LB, is expected to raise a further €2.5bn. In the event of a public rescue, the current bidding process would become obsolete. The private equity firms Cerberus and Centerbridge are said to have submitted a joint bid for shares in Nord/LB, with plans for the institution to exit crisis-ridden ship financing, but continue with its profitable real estate financing.
Subscribers to our premium service have access to this article in full as well as to an additional 480,000+ news items: all filterable by topic, company, asset class, city or keyword. In TD Premium you can search for investment deals, leases, current project developments and company news with pinpoint accuracy.
TD Premium is Germany's leading property information tool that interconnects news, transactions, project data, market and company information in a unique and flexible system.