DVB Bank withdraws from ship financing
FRANKFURT-BASED transport finance specialist DVB Bank has signalled that it will exit the industry
FRANKFURT-BASED transport finance specialist DVB Bank has signalled that it will exit the industry. The bank has already halted any new lending to shipowners and has told shipowner clients about its decision, reported UK's Lloyds List.
DVB is currently ranked a Top 10 ship financier.
Last year Frankfurt-based parent DNZ was looking to sell the bank and had also considered attracting buyers for the shipping portfolio.
Aside from the Frankfurt head office, DVB has an international network with offices located in Amsterdam, Athens, Hamburg, London, Oslo, New York, Curacao, Singapore and Tokyo.
Key markets for shipping have included Greece, where at the end of last year, it was ranked second-biggest lender to Greek owners after Credit Suisse, Germany and the Far East.
Staff have already been informed of the move that will see the shipping locations closed by the end of 2020. From the start of 2021 the Amsterdam office will be responsible for handling the residual book of loans.
At present, the shipping portfolio stands at US$7.5 billion. The portfolio has been sharply reduced in recent months owing to a combination of natural repayments and clients taking the opportunity to refinance with other lenders.
The move to close the shipping business follows the sale of DVB's aviation portfolio to Mitsubishi on November 18, as well as the sale of its land transport business in 2017.