HSH taps US funding

German lender HSH Nordbank has raised $700m in a refinancing deal in the US, backed by 30 shipping loans.
HSH: US refinancing deal

HSH: US refinancing deal

The world’s biggest shipping bank said the ground-breaking transaction with Citigroup, called Ocean Funding 2013, could open up a path for similar dollar deals.

HSH said the move had been jointly arranged and executed with its US partner, “strengthening its position in the important US dollar-based lending business.”

A spokesman confirmed to TradeWinds that the shipping loans used as collateral are part of HSH’s existing portfolio, but would not specify which owners are involved.

He added that the loans had not been sold and the $700m was now available to HSH to use for other purposes.

HSH could now look to leverage other asset classes with other counterparties in the US.

“Ocean Funding 2013 is an example of how HSH Nordbank successfully structures and realizes large-volume USD funding transactions with a strong partner,” said Mark Bussmann, head of strategic treasury at the bank.

“The quality of our portfolio and the market demand opens up the opportunity for comparable transactions with a range of well-known investors.”

Citgroup’s head of markets in Germany and Austria, Christian Spieler, added: “Ocean Funding 2013 evidences our strategic footprint in Germany as an arranger for USD funding transactions in diverse loan asset classes and as a partner in global asset based finance solutions.”

HSH has been looking for solutions for its loss-making shipping loans and is also trying to complete sales of vessels to owners like Navios of Greece, backed by new lending.

Its two German state owners had to provide a loss guarantee of EUR 10bn ($13.75bn) during the financial crisis.

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