Contract for extensions to Moscow airport signed
In record time of only four months, HSH Nordbank AG and Sberbank of Russia have successfully completed negotiations for a contract with the operator of the Sheremetyevo International Airport concerning the financing for the construction of Terminal 2 at the airport. As a result, a credit facility of USD 222 million is now available with immediate effect. In September, the two banks were selected as joint mandated lead arrangers to commence exclusive negotiations with the airport operator, prevailing in a tender process in which over 20 Russian and international banks had participated.
Change in the domestic Shipping Division - Frank Bünte will follow Markus Lange
Markus Lange (44), currently Deputy Head of Shipping and Head of the business area Domestic Clients in the Shipping Division at HSH Nordbank will leave HSH Nordbank Group at his own request in the middle of March. He then will join the board of management of a Hamburg based shipping company.
HSH Nordbank to open a Representative Office in Mumbai
HSH Nordbank AG received approval from the Reserve Bank of India, the Indian banking regulatory authority, for establishing a Representative office in Mumbai.
HSH Nordbank to finance Evans Randall’s EUR 240 million office investment in Brussels
HSH Nordbank AG will finance purchase of the “Covent Garden” office complex in Brussels by London-based Randall Investment Management Ltd. The finance volume amounts to about EUR 240 million.
HSH Nordbank places world’s first jumbo ship Pfandbrief with an Aaa rating
World’s first jumbo ship Pfandbrief, which HSH Nordbank offered for subscription today, met with overwhelming demand. HSH Nordbank closed the book, by then three times oversubscribed with more than three billion euros, after less than two hours at about 10.15 a.m. The ship Pfandbrief, which HSH Nordbank launched as joint lead together with Deutsche Bank and HSBC, is not only world’s first jumbo ship Pfandbrief, but also the first jumbo placement of the financial year that has just begun. The issue’s volume is one billion euros with a coupon of 4.25 percent (mid-swaps flat) and a two-year term. Back in September rating agency Moody’s already gave the related ship-cover pool amounting to about EUR 2.5 billion the highest possible rating of Aaa.
HSH Nordbank sector study: airfreight market continues on a growth course
The airfreight market will continue to be one of the global growth sectors over the next few years. According to a recent study by HSH Nordbank AG, medium to long-term forecasts by market participants expect further growth in the airfreight sector. The greatest impact on the airfreight market comes from the trends within the global economy and global trade. In this context, HSH Nordbank is projecting long-term global trade growth of seven percent p.a.
Three JTF awards for HSH Nordbank
HSH Nordbank has received multiple awards from international specialist periodical Jane’s Transport Finance (JTF). At this year’s Gala Awards Dinner in London’s Merchant Taylors’ Hall, HSH Nordbank’s Transportation Finance team received as many as three of the sought-after awards for its work this year. The Bank was awarded the “Aircraft Debt Deal of the Year – Asia”, the “Shipping Debt Deal of the Year – North America” and the “Rail Finance Innovator 2007”.
HSH Nordbank: good earnings posted by the Real Estate division
HSH Nordbank’s Real Estate division improved its operating earnings after risk provisioning by 5.5 per cent to EUR 193 million (previous year: EUR 182.5 million) in the first nine months of 2007. This positive result was also attributable to lower risk provisioning, which went down significantly on the previous year, from EUR 67 million to EUR 43.6 million. Net interest income rose by just under 4 per cent to EUR 267 million (previous year: EUR 258 million). Commission income dropped from the previous year's high level of EUR 111 million to just under EUR 100 million. Return on equity decreased slightly from 18.8 to 18.6 per cent compared to the same period of last year.
Global Transportation posting further gains
HSH Nordbank significantly increased operating profit after risk provisioning in its core Shipping and Transportation segments after the first nine months of 2007. Totaling EUR 362 million, earnings were up more than 43 percent on last year’s figure of EUR 254 million. The entire segment under the Global Transportation Markets umbrella benefited from the sustained upward momentum in the international shipping and transportation business. The segment’s ROE rose to 22.3 percent, equivalent to a year-on-year increase of 3.3 percentage points.
Corporates expanding its business
The Corporates segment has posted very good earnings for the first nine months. Adjusted for last year’s higher income from the sale of equity holdings, operating profit went up substantially. Net commission income grew at an exceptionally strong pace, with interest income putting on a good performance as well. At EUR 352 million, earnings on September 30, 2007 were at the pre-year level on an unadjusted basis
HSH Nordbank is awarded major seal of approval by BaFin
HSH Nordbank’s risk-management systems meet the heavy demands set out in the new EU equity rules. The so-called IRB Advanced Approach pursuant to Basle II will be officially introduced on January 1, 2008, but the Bank’s internal processes already comply with this demanding set of rules.
HSH Nordbank defies financial crisis
HSH Nordbank boosted its consolidated earnings to a new record level in the first nine months of 2007. Earnings before risk provisioning rose 18 percent to nearly EUR 1.1 billion. The reasons for this strong growth were above all significantly higher interest income and a disproportionately small increase in costs. Despite the strains of the financial crisis and greater contingency reserves, pre-tax consolidated earnings rose by 14 percent to EUR 772 million.
Investment Volume Soars on Russia’s Real Estate Market
Investment volumes on Russia’s commercial real estate markets have perked up sharply in 2007, too. By the end of the year, the total investment volume is likely to top US Dollar 4.5 billion. This translates into a 41 percent increase compared to last year’s figure of US Dollar 3.2 billion. The growth manifests itself on the office market as well as on the retail and logistics property markets. In addition to the traditionally favoured locations of Moscow and St. Petersburg, other major cities with populations of more than a million are moving increasingly into the focus of investors. These are the findings of the survey “Real Estate Market Russia - More Opportunities than Risks?” that was just published by HSH Nordbank.
HSH Nordbank wins out on Airport-Financing
HSH Nordbank AG has been awarded a contract by the Russian Airport Sheremetyevo to finance the expansion and reconstruction of Terminal 2. The 12-year loan facility is worth a total of USD 222 million and more than 20 Russian and international banks showed high interest in the financing of this project. This order to take the role of Mandated Lead Arranger for the financing structure means that the Bank is able to further improve its position in the Russian market.
HSH Nordbank to finance rail link to Brussels airport
HSH Nordbank will finance the railway link from Brussels airport to the Belgian long-haul rail network. The project known as Diabolo is among Belgium’s most important infrastructure measures. The total project volume of EUR 370 million contains costs about EUR 290 million for the construction that is to be completed by 2012. HSH Nordbank will finance construction of two partially subterranean rail lines, of about three kilometers length. This will connect Brussels’ main airport to the likewise still to be completed new rail link between Schaerbeek and Mechelen in the middle of the motorway E19. The airport will thus be hooked up to the significant Paris-Brussels-Antwerp axis.