Deutsche Bank buys bulk of NORD/LB’s aviation financing portfolio

Deutsche Bank has bought €1.67bn ($1.78bn) in loans from Norddeutsche Landesbank's €2.75bn aviation financing portfolio.

The loans were acquired through an auction system and are backed by commercial passenger aircraft. Currently, Nord/LB's current aircraft portfolio consists of around 300 funded aircraft and engines.

Moreover, the global credit financing & solutions (GCFS) division of Deutsche Bank is purchasing the portfolio. GCFS offers a variety of loan products, such as asset-backed financing, infrastructure and transportation finance, renewable energy finance, and energy transition finance.

Ross Duncan, co-head of the global transportation finance team at Deutsche Bank stated: “This deal plays to our strengths and our deep experience in this sector. It is an opportunity for us to acquire high quality loans with an attractive return profile.”

The quality of the portfolio was demonstrated by the strong demand for the loans throughout the competitive bidding procedure, and it is agreed upon by both sides not to reveal the purchase price.

Furthermore, the antitrust authorities must provide their permission before the purchase transaction can be completed. It is anticipated that the deal would close in the latter part of 2024.

In the meantime, in order to create an extensive study on the subject of achieving interoperability for tokenised assets across public and private blockchains as well as legacy systems, Deutsche Bank teamed up with a number of prominent financial institutions and Web3 founders earlier this month.

In addition to providing flexibility, privacy, transparency, and scalability, the paper “Institutional Interoperability: How Financial Institutions Navigate a Multichain World” discusses how financial institutions might boost tokenised asset accessibility and liquidity.

Every author who contributed to the article highlighted the importance of interconnected network models that support several blockchains.

"Deutsche Bank buys bulk of NORD/LB’s aviation financing portfolio" was originally created and published by Private Banker International, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.