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Hamburg Commercial Bank (HCOB) is expanding its shipping business by acquiring a US$992 million portfolio of shipping loans from Dutch bank NIBC. With this transaction, HCOB is diversifying its shipping portfolio while expanding its franchise in the European market.
The portfolio was acquired through a multi-stage competitive bidding process. As well as acquiring the loans, HCOB will take over a team of experienced shipping experts from NIBC. Ulrik Lackschewitz, CEO of HCOB, said the transaction expands HCOB's share in the European shipping market.
The transaction both diversifies and expands HCOB's shipping exposure, which has seen early prepayments in recent years due to strong markets. As per half year 2024, the combined shipping book will account for approximately 10 per cent of total assets, in line with previous years. The acquired loans will reduce HCOB's portfolio share in container business in favor of bulk carriers and chemical tankers as well as strengthen its presence in Scandinavia, the Netherlands, and the UK.
The transaction is scheduled to be completed by the end of June and will be recognised in the interim financial statements. The parties have agreed not to disclose the purchase price.
