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HSH Nordbank to exit aviation
18 July 2011
The German Landesbank will look to sell its €5.5 billion aircraft portfolio after closing its aviation lending business.
Read more:
HSH Nordbank
aviation finance
EU
City of Hamburg
State of Schleswig-Holstein
Bertrand Grabowski
West LB
HSH Nordbank will cease its aviation finance business. After two years of discussions the bank, which has an aircraft portfolio valued at about €5.5 billion ($7.8 billion), will stop lending and will look to sell its loan portfolio, according to a source familiar with negotiations.
In May, HSH Nordbank announced it would be closing its London office by 2012. Read the story here.
Bank Bailout
The decision to stop aviation lending is part of an agreement between the EU and HSH Nordbank's shareholders that obliges the bank to reduce its USD loan exposure.
In 2009, after HSH Nordbank received a bailout, the EU began investigating the rescue plan – which included €10 billion in guarantees and...
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