HSH Nordbank has announced it is
winding down its leasing refinancing business and realigning
activities to focus on two globally active business units.
The German bank, which owns half of
the Railpool joint venture, revealed that it would concentrate on
its shipping and transportation business lines, and reduce its
balance sheet from €200 billion to €120 billion this year.
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The bank has enjoyed strong growth in
these two units “for decades”, and will announce a more detailed
strategy in February this year.
“Our transportation business will
still run a global approach and will continue to be internationally
active, especially in aviation and infrastructure,” said Rune
Hoffmann, a spokesman for the company.
“We also remain committed to the
long-standing relationship we have with Europe’s largest rail
operating lessors, and will maintain it throughout the current
economic turmoil,” he added.
Hoffmann stressed the announcements
will have no effect on Railpool, which HSH Nordbank founded with
KfW-IPEX Bank in July 2008.
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By GlobalData“As we have done in the past six
months, we will continue to support Railpool, bringing our market
expertise and know-how to the company,” said Hoffmann.
In a statement, the bank said that it
cannot “extricate itself from the global financial crisis”, and
that the changes in the global markets mean it needs to restructure
and decrease its total assets.
The bank will therefore wind down its
leasing refinancing business over the coming months, although
Hoffman emphasised it will do so “in a moderate way”, to give the
leasing companies enough time to find new partners for
re-financing.
This is the second time in as many
months that a German lessor is shutting down its refinancing
business. Last month, Leasing Life reported that ING Lease
Germany was also shutting down its forfeiting business line, which
dealt primarily with other lessors too.
