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DVB Bank - It's all about expertise!

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Simone Sacherer

on 10 March 2017

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Transcript of DVB Bank - It's all about expertise!

It's all ab ut expertise!
Mission Statement
Unique Expertise
Competitive Strenghts
Business Model
About Us
The leading
specialist
in international
transport finance
Shipping Finance – In-depth expertise
Our mission statement: „To create sustainable risk-adjusted income through providing bespoke financial solutions to our diversified client base, leveraging our unique global position in the shipping industry”



2. Tanker Group
Our dedicated approach and our commitment to the shipping industry bring us closer to our clients.



3. Dry Bulk Group

(dry cargo, combination and bulk carriers)

Shipping Finance portfolio
(31 Dec 2016: €11.9 bn)
by asset type
by region
Latest News
At DVB,
we make
deals work
.
The leading
specialist
in international
transport finance
... to constantly and thoroughly research and study our industry. Often, this leads us to challenge conventional wisdom when offering our focused range of financing services.
We go the
extra mile...

This means striving to seek and develop intelligent and appropriate solutions that meet and even exceed our clients’ needs and expectations.
We are well aware
...
of the opportunities and risks presented by the cyclical transport markets –
both regionally and internationally.
We are familiar ...
with the challenging business issues faced by our clients.
The Board of Managing Directors
CEO and Chairman of the Board of Managing Directors


Ralf Bedranowsky
DVB – International organisation
DVB’s 10
1. Business model

– clearly focused, distinctively
specialised, diversified in many aspects, cycle-
neutral and international in scope
2. Business policy

– conservative and
sustainable
3. Organisation

– transparent structures,
swift information flow and prompt decision-making
4. Human resources

– highly qualified and
experienced
5. Products & services

– customised and
beyond the typical scope of banking
6. Asset & Market Research

– sophisticated,
renowned and award-winning
7. Credit portfolio

– diversified by multiple
criteria and categories
8. Risk management

– consistent and
forward-thinking
9. Funding

– granular and maturity-matched
10. Own funds

– sound capital base
competitive
strengths
Annual General Meeting 2016
by business division
by region
DVB’s unique business model
Stay in touch:
DVB’s customer lending volume (31 Dec 2016: €25.9 bn)
Total lending volume

DVB – Lives diversity
We understand ...
the technical and commercial details of the assets we finance.

Some

important deals

2016


Low bunker costs can postpone scrapping of older, inefficient vessels and might prolong the supply overhang.

The lack of private equity activity and bank financing in the second-hand market will stress market values for older tonnage.

Defaults and consolidation of ship owners and charterers have occurred and are expected to continue.


Outlook 2017 – Shipping markets
Economic growth expectations for 2017 are lower than previously anticipated. This lower growth mode means that it will take longer for most shipping sectors to see a noticeable uptick in demand.

Meanwhile, overcapacity in the existing fleets remains a challenge.

Difficult market conditions for shipping and offshore sectors are putting pressure on shipyards, which in turn encourage ordering activity by lowering prices – thereby further delaying recovery prospects.

The structural oversupply will further impact ship values and charter rates within the three challenging sectors (container vessels, bulk ships and crude oil tankers).

Asset & Market
Research

Outlook 2017 – Shipping markets
Member of the Board of Managing Directors


Bart Veldhuizen

RESPONSIBILITIES

OFFICES HELD

CURRICULUM VITAE


Product/service areas
Business Process Support
Group Audit
Group Compliance Office
Group Controlling
Group Corporate Communications
Group Finance
Group Human Resources
Group Legal

Client areas in affiliates
ITF International Transport Finance Suisse AG
LogPay Financial Services GmbH




Chairman of the Supervisory Board
DVB Bank America N.V., Willemstad, Curaçao

Chairman of the Board of Directors
DVB Holding (US) Inc., New York, USA
DVB Transport (US) LLC, New York, USA
DVB Group Merchant Bank (Asia) Ltd, Singapore
ITF International Transport Finance Suisse AG, Zurich, Switzerland

Member of the Board of Directors
DVB Capital Markets LLC, New York, USA

Member of the Advisory Board
Hellmann Worldwide Logistics GmbH & Co KG, Osnabrück, Germany



DVB Bank SE, CEO and Chairman of the Board of Managing Directors

DVB Bank SE, Member of the Board of Managing Directors

Deutsche Bank AG, Global Head Deutsche Shipping, global
responsibility for the business development and coverage of the
shipping clients in ship financing and investment banking

Landesbank Hessen Thüringen, Member of the Board
of Managing Directors

Deutsche Bank AG, from 2001 to 2004 Member of the Regional
Management Board for Northern and Eastern Germany and Deputy
Chairman of the Supervisory Board of Schiffshypothekenbank zu
Lübeck AG


Since July 2015

2013–2015

2007–2013



2004–2007


1980–2004


RESPONSIBILITIES

OFFICES HELD

CURRICULUM VITAE


Product/service areas
Information Technology

Client areas in business divisions

Corporate Finance
Offshore Finance
Shipping Finance
Shipping and Intermodal Investment Management

Client areas in affiliates
DVB Capital Markets LLC




Chairman of the Board of Directors
DVB Capital Markets LLC, New York, USA

Member of the Board of Directors
DVB Transport (US) LLC, New York, USA
DVB Holding (US) Inc., New York, USA
DVB Group Merchant Bank (Asia) Ltd, Singapore

Member of the Supervisory Board
DVB Bank America N.V., Willemstad, Curaçao

Non-executive Member of the Board and Chairman of the Compensation Committee
Eagle Bulk Shipping Inc., New York, USA




DVB Bank SE, Member of the Board of Managing Directors

Eagle Bulk Shipping Inc., Non-executive Member of the Board and Chairman of
the Compensation Committee

Armi Investments Pte, Costamare MLP, Member of the Board

Apollo Global Management, Senior Advisor

Seadrill Partners LLC, Member of the Board

Swaen Marine Ltd, sole director

Golar LNG Partners LP, Member of the Board

Lloyds Banking Group, Managing Director and Global Head of Shipping

NIBC Bank, Shipping Coverage Banker Transport & Energy

Smit Internationale, Member of the Management Team Singapore and Manager Greece

Nedship Bank, Relationship Shipping Banker

Van Ommeren Shipping, Management Trainee

Erasmus University Rotterdam, The Netherlands, Master in Business Economics


Since April 2015

Since 2014


2014–2015

2013–2015

2013–2015

2012–2015

2011–2015

2007–2011

2002–2007

2000–2002

1995–1999

1993–1995

1989–1991


Aviation Finance strategy – Integrated platform solutions
Our mission statement: As a hybrid institution, we provide our customers with the most efficient blend of capital and services at any period in time and at any point along the industry cycle.
We feature a unique platform of Aviation Finance services and products employing specifically skilled individuals.

We continually develop our asset-oriented lending practice to profitably expand our business.

We are willing to assume residual value risks –based on in-depth research and market/asset knowledge.

We take a proactive approach to maintaining and growing our portfolio.

We increase our efficiency further to stay ahead of our competitors.

We like to ensure that our distinctive features are fully recognised and valued.

Aviation Finance – Integrated platform solutions
Aviation
Finance portfolio

by asset type
Total lending volume

by region
(31 Dec 2016: €8.7 bn)
Some
important deals
2016
Outlook 2017 – Aviation markets
The generation change in terms of aircraft technology is taking place over the full spectrum of jet categories. There is market speculation about new variants of existing programmes, such as a Mitsubishi MRJ100X, a Bombardier CS500, an Airbus A350-2000 and/or later an A380neo, but these are unlikely to be launched this year. We do expect the launch of the Boeing 737MAX-10 later in 2017. A decision on Boeing’s “Middle-of-the-Market” jet concept is not expected any time soon.

Aircraft lessors control an increasing share of the global commercial jet fleet. They enjoy good popularity with the global investor community. Consolidation has already taken place in the top 10 of the league and some more can be expected. At the same time, new lessors are entering the market, frequently driven by Asian investors seeking currency protection in US-dollar denominated assets.

Aircraft values seem to be just past a cyclical peak, except for select larger twin-aisle jets that are showing clear weakness. In general, there is currently ample commercial financing available for new and increasingly also for used aircraft, especially if sold with a lease attached. There is no reason to expect a sharp downturn in the short term for single aisles, but an unexpected economic slowdown or a fuel price spike could change things rapidly, similar to 2008.
Offshore Finance – Highly specialised industry
The offshore industry is highly specialised – so is DVB’s Offshore Finance division. The team facilitates a unique industry focus and specialisation model which has earned us a high market reputation.   

Offshore Finance provides debt financing and financial solutions to our clients. We have been mandated to structure offshore transactions and we often act as agent on many syndicated loans to the offshore industry. As we maintain strategic relations with most our clients, we are able to discuss company-specific strategic alternatives with them, offering added-value services like Advisory and M&A.

Our clients within the industry range from owners/operators of offshore vessels to experienced financial investors within the offshore sphere, the majority of which is concentrated in the offshore hubs of Europe, the Americas, and Asia/Pacific.

Clients and prospective clients are serviced from three different locations: Singapore, New York and Oslo.
Offshore
Finance portfolio
(31 Dec 2016: €2.4 bn)
by asset type
Total lending volume

by region
Outlook 2017 – Offshore markets
Continued oil price uncertainty is leading to further cuts in exploration and production (E&P) spending as oil and gas majors not only implement cost-cutting programmes, but also delay investments. It is expected that offshore E&P spending will decrease by another 8% in 2017, with capital expenditures being more affected than operational expenditures.







Demand for most offshore asset types is expected to further decline. Demand in regions with comparatively higher oil price breakevens – such as the North Sea, West Africa or Brazil – continued to be more affected than lower-cost production regions such as the Middle East.






On the supply side, the number of units on order remains large for most asset types. Rig owners and shipowners are expected to continue to take measures to reduce supply growth as much as possible, by delaying deliveries and scrapping older units.







In the short term, the initiatives for supply adjustment measures will not be sufficient to make up for the lost demand. Hence, fleet utilisation is still expected to decline. As a consequence, the number of stacked units is likely to continue to grow as shipowners and rig owners strive to preserve cash.





As the market continues to remain difficult, cash reserves amongst rig owners and shipowners are becoming depleted. Hence, we expect restructurings, distressed sales and bankruptcies to continue to be major topics during 2017.






Outlook 2017 – Aviation markets
Some
important deals
2016
Outlook 2017 – Offshore markets
Land Transport Finance – Consistent client franchise
We have a clear mission statement: We highly value our client relationships. The goal is to increase our client franchise as the leading rail asset financing partner in our core regions. Based on our

unique understanding of the market,
focus,
capacity to execute transactions, and
flexibility,

we offer added value by

advising on intelligent asset finance solutions, and
taking appropriate risk positions that capitalise on the cyclical nature of the underlying sectors.


by asset type
by region
Total lending volume

Some
important deals
2016
Outlook 2017 –
Land Transport markets
Demand perspectives for freight transport are positive in Australia and neutral for Europe and North America. The outlook for the European rail passenger market is positive. Transport price, lease rate and utilisation rate increases can be expected in Australia, whereas the picture is flat in the other two geographies.
In its reference scenario, the European Commission expects an annual 1.6% increase of European logistics and freight transport activity between 2010 and 2030. SCI Verkehr forecasts a 1.4% rail freight performance (tonne-km) growth p.a. in Europe, 1% growth p.a. for new locomotives and new freight cars as well as 4% p.a. for new urban rail equipment worldwide between 2016 and 2020. The U.S. Department of Transportation’s Bureau of Transportation Statistics and Federal Highway Administration projected a compound annual growth rate of +0.8% in rail freight for the period 2016‒2045. Moody’s projects a neutral to ‒1.8% rail volumes scenario for North America for 2017.

The US freight car backlog now predominantly consists of cars which are not built for the now waning oil industry. Regulatory changes for flammable liquid tank cars distort the economics for a large part of the existing flammable liquid tank car fleet. However, recent large investments into the general chemical industry due to low natural gas prices in the US will start to trigger more transport by tank cars and jumbo covered hoppers.





Coal markets are still depressed in the United States (tighter emission regulations) and the United Kingdom (doubling of the carbon tax and closure of some coal-powered stations), subdued in Australia (lower growth in demand from Asia, but the China-Australia Free Trade Agreement lifts many import duties), but doing fine in continental Europe (more import due to mine closures). President Trump’s emphasis on the reliance on coal could stimulate the important coal sector in USA. The largest iron ore mines and iron ore railroads will grow, the others will decline or shut down until iron ore prices considerably rise again.

Intermodal transport is likely to stay stable in Australia and North America. It will probably decrease slightly in Europe.

Locomotive and freight car demand is weak in all three geographical areas, since current fleets must be better utilised first. Asset prices are stable or increasing outside energy sectors (coal, oil and sand).

Leasing companies continue to gain market share in Europe and for freight cars also in North America.


Outlook 2017 –
Land Transport markets
Our Shipping Finance portfolio is strongly diversified across sectors and geographic regions.



Land Transport Finance portfolio
(31 Dec 2016: €1.6 bn)
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The people who work with us are just as international; our employees belong to a wide variety of cultural circles, and come from many different nations. We employed 624 persons from 40 different nations as at
31 December 2016; there are 30 different nationalities represented within our core Transport Finance business. 284 employees work in Germany and
340 in our international locations.
DVB – Diversity of staff
Internationality is also reflected in our business divisions' client base: the majority or our globally active clients are domiciled in Europe (50.4%), followed by North America (18.4%) and Asia (18.4%).
DVB – Global client base 2016
DVB – Valuable credit portfolio
DVB – Diversified funding (31 Dec 2016: €25.7 bn)
Sustainability

To act sustainably is to act responsibly – on economic, environmental, social and governance criteria.

DVB is well aware of its multiple roles in society: we are a global lender and adviser for the transport industry, a player in the global financial markets, an international employer, a client to service providers, advisers and suppliers as well as a corporate citizen.
http://bit.ly/1FkYRFN
Our target assets include, amongst others, tankers (crude oil, gas, chemical, product), dry bulk vessels, container vessels, container boxes, car carriers and ferries.


Shipping Finance strategy – In-depth expertise
We thoroughly analyse and continuously track the vessels financed from the yard to the scrapyard.
We further ingrained risk management in the process, supported by the complete involvement of research and risk management throughout the life cycle of a loan.
DVB – Gender quota
In accordance with the Act for Equal Participation of Woman and Men in Executive Positions in the Private and Public Sector,
DVB Bank SE – exchanged-listed company and subject to what is called ‚one third co-determination‘ – laid down the following targets (1) valid until 30 June 2017:

Supervisory Board – female quota of 11%
Board of Managing Directors – female quota of 0%
First management level – female quota of 19%
Second management level – female quota of 33%

In 2016, the actual female quota on DVB Bank SE's Supervisory Board doubled versus the defined target quota, reaching 22%. Under a local court order dated 23 February 2016, Dr Kirsten Siersleben was appointed, with effect from 1 March 2016, to fill a position on the Supervisory Board that had been vacant since 31 October 2015. On 23 June 2016, the Annual General Meeting elected Dr Siersleben to the Supervisory Board as a shareholder representative.
Project, project team, project sponsor
The Board of Managing Directors has initiated a sustainability project. Its key goal is to fully integrate the entire organisation to support sustainable business development.
A dedicated project team comprises members from various disciplines in the Bank. It is presently working on various sustainability aspects.

Business transformation
As of 1 October 2015, we have implemented a partnership with aireg – dedicated to supporting the climate efforts in the aviation industry; we consider this initiative to be business transformational.
– The long-term goal the international aviation industry has defined for itself
is that by 2050, the CO2 output should have halved from its 2005 level.
– aireg’s target is for biofuels to make up 10% of the jet fuel consumed
domestically by 2025.
– DVB is considering financial options and also providing input with our
specific business expertise.

We also want to identify a business transformational project for DVB in the shipping industry.

Sustainability@dvb
Sustainability@dvb
Reporting requirements
Based on EU Directive 2014/95/EU a legal reporting obligation commences in 2017 for the financial year 2017, disclosure of non-financial and diversity information by certain large undertakings and groups will be mandatory. DVB will comply with the respective German law by reporting a “non-financial declaration” in the Management Statement of the Annual Report 2017.
Reporting on sustainability aspects is not new for DVB – we have been doing so for several years within the scope of the Bank’s Annual Reports.


DVB's business model is international in every respect. With offices in eleven pivotal locations in Europe (Frankfurt/Main, Amsterdam, Athens, Hamburg, London, Oslo and Zurich), in the Americas (New York and Curaçao), as well as in Asia (Singapore and Tokyo), our business divisions have a worldwide presence in the transport markets and their various segments.








Women in management positions
Aviation Finance – KDAC

DVB'S SWOT analysis
Our mission statement: „To create sustainable risk-adjusted income through providing bespoke financial solutions to our diversified client base, leveraging our unique global position in the offshore industry”

Member of the Board of Managing Directors


David Goring-Thomas

OFFICES HELD

Chairman of the Board of Directors
DVB Transport Finance Ltd, London,
United Kingdom

Member of the Board of Directors
DVB Capital Markets LLC, New York, USA
DVB Holding (US) Inc., New York, USA





CURRICULUM VITAE


DVB Bank SE, Member of the Board of Managing Directors

DVB Bank SE London Branch, Deputy General Manager of London Branch,
Managing Director and Global Head of Aviation Finance

The Long-Term Credit Bank of Japan Ltd, London Branch, Deputy General Manager
and Head of Aviation Finance – Europe, Middle East & Africa

LTCB Merchant Bank (Singapore) Ltd/The Long-Term Credit Bank of Japan Ltd,
Singapore Branch, Senior Vice President, Head of Aviation Finance – Asia

The Long-Term Credit Bank of Japan Ltd, London Branch, Manager/
Senior Manager, Aviation Group

Swiss Bank Corporation, London, Merchant Banking, Assistant Manager/
Manager in the Aviation Finance Group, and Manager Corporate Finance

National Westminster Bank, International Banking Division, London,
Graduate Trainee, Account Officer in Transportation (Aerospace) and
Assistance Manager (Personnel)  

University of Manchester, B.A. Economics Honours



Since December 2016

1998–2016


1997–1998


1995–1997


1994–1995


1990–1994


1987–1990



1984–1987

RESPONSIBILITIES

Product/service areas
Group Treasury
Transaction and Loan Services

Client areas in business divisions
Aviation Finance
Aviation Financial Consultancy
Aviation Investment Management
Financial Institutions and Syndications
Land Transport Finance

Client areas in affiliates
DVB Transport Finance Ltd





Member of the Board of Managing Directors


Christian Hagemeyer

OFFICES HELD

None





CURRICULUM VITAE


DVB Bank SE, Member of the Board of Managing Directors

Landesbank Hessen Thüringen, Head of Credit Risk Management

Deutsche Bank AG, Senior Credit Officer

Deutsche Bank AG, Head of Credit Large Caps

Deutsche Bank de Bary N.V., Group Head Risk Management Commodity Trade Finance

Deutsche Bank de Bary N.V., Relationship Manager Commodity Trade Finance

Deutsche Bank de Bary N.V., Relationship Manager German Desk

Deutsche Bank AG, Traineeship – Focused on corporate lending

University of Hamburg, M.A. Business Administration




Since January 2017

2005–2016

2001–2005

1995–2001

1993–1995

1991–1993

1989–1991

1987–1989

1984–1987

RESPONSIBILITIES

Product/service areas
Group Risk Management

Aviation Credit
Aviation Research
Credit and Asset Solution Group
Land Transport Credit
Land Transport Research
Shipping and Offshore Credit
Shipping and Offshore Research






http://bit.ly/2jfL1RF
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The
Board of Managing Directors
of DVB Bank SE currently consists of four members, none of whom is a woman. This is in line with the target quota. Members of the Board of Managing Directors are appointed without regard to nationality, gender or religion. It is whether a candidate – male or female – has the required knowledge, skills and professional expertise necessary to properly perform their duties and whether he or she complies with the principles laid down in the Company's Memorandum and Articles of Association that decides on their appointment.

At 31 December 2016, the two
top management levels
below the Board of Managing Directors comprised 86 executives, who either reported directly to the Board of Managing Directors or who worked as team leaders. Women held 21 (24.4%; previous year: 26.9%) of these executive positions. While the share of female executives on the first management level rose slightly to 18.2% (previous year: 17.6%), it decreased to 28.3% on the second management level (previous year: 34.1%) against restructuring measures and minor fluctuations in some parts of the Bank. When filling positions, assuming the same level of qualifications, the Bank is committed to give preference to internal applicants and does not regard criteria such as nationality, gender or religion in its decision-making process.





Deal of the year 2016
Demand perspectives for passenger transport still remain very positive. Airfreight volumes have recovered strongly during 2017. Passenger yields were falling as a result of low oil prices, but this trend has probably come to an end.

Global airline results are strong and – thanks to the low oil price and high load factors – reached record levels during 2016 on an aggregated level. With increasing fuel and labor cost, 2016 has probably marked the peak in the cycle. There are no industry reasons to expect a dramatic downturn, but global political instability, terrorism, populist and protectionist rhetoric could undermine the confidence of the consumers in international travel as well as international trade.

Despite lower order volumes during 2015/2016 vs 2013/2014, the backlog for commercial jets is still close to record levels at around 13,670. The majority of orders is for the Airbus A320neo and Boeing 737 MAX. At 2015 production levels, the backlog is equivalent to just under nine years of production. The volume of commercial jet orders (western-built, all civil operators) during 2016 was 10% down compared to 2015 and even 40% down compared to the record order year 2014.

http://bit.ly/2n7dGxo
In 2016, DVB closed a deal with IVS Bulk Pte Ltd (IVS Bulk), a subsidiary of Grindrod Shipping Pte Ltd established in 2013. On the back of our marketing efforts since 2008, we have established an active and engaging relationship with Grindrod Shipping since our first ship finance deal for a fleet of tanker and dry bulk vessels in 2011. We closed our first deal with IVS Bulk in 2014 for six of the twelve newbuildings. With the lowest dry bulk markets, the follow-on deal with existing club banks for the remaining six newbuildings did not materialise at that time.

Given the relationship established with Grindrod over the years and our commitment to support the company’s shipping ventures, we were asked to assist in structuring a deal for their remaining Supramax and Handysize vessels. Together with the client, we arranged a conservatively structured finance package as back-stop finance for the state-of-the-art newbuildings. The deal was syndicated in close cooperation with our Financial Institutions and Syndications team. Despite challenging markets, DVB was able to successfully syndicate the remaining commitment to a European and Japanese lender.

Grindrod Shipping was very appreciative of our continuous support, providing structured services at times when other lenders were withdrawing from dry bulk deals – even for their relationship customers.

Shipping Finance - IVS Bulk
Wholly-owned by the Great Eastern Shipping Company, the Greatship Group started operations in 2006. Today, the company owns a fleet of four jack-up drilling rigs and more than 20 offshore support vessels.
 
Greatship entered the contract drilling business in 2009 after it took delivery of two Keppel FELS jack-up drilling rigs (Mod V-B design). Two newbuildings from Lamprell (LeTourneau Super 116E design) were added to the fleet in 2013 and 2015. These four units are on charter to Oil and Natural Gas Corp (ONGC) in India and are the most established designs for modern, non-harsh environment jack-ups. They have been enhanced to meet the operating challenges of the Indian continental shelf, and also to drill high-pressure/high-temperature wells.

Having continually banked the offshore business of the Great Eastern Shipping Group for over 15 years, we were invited into the senior secured facility for the refinancing of Greatship’s four modern high-spec jack-up rigs. The client approached us due to our longstanding relationship, and our ability to assess the viability of the project despite the challenges in the offshore sector. The modern assets with long-term ONGC contracts, and Greatship’s financial strength attracted heavy competition. In this transaction we partnered with four more financial institutions, each taking equal stakes.


Offshore Finance – Greatship
Deal of the year 2016
In April 2016, Aviation Investment Management (AIM), in its capacity as consultant to the Deucalion Aviation Funds, signed a sale agreement with one of DVB’s long-standing partners, AerCap, for the purchase of a portfolio of 37 aircraft.
 
The well-diversified portfolio of mid-life assets formed the basis for a new joint venture ‒ called KDAC ‒ between Deucalion Limited and one of its investment firm partners. The subject deal, with its substantial size, offered the opportunity to build a platform with the flexibility to grow and explore multiple exit opportunities.
 
The portfolio’s size, equity requirement, and average age of ten years represented challenges for some competing bidders. By utilising the resources and expertise of our wider Aviation platform, AIM was able to identify value in the portfolio where others had been unable to do so. Furthermore, the execution capabilities of AIM were an added attraction for the seller which was looking to meet a tight closing timetable.

Our Aviation Asset Management team was appointed servicer of the portfolio and our structured lending team joined the senior debt facility as a co-underwriter with BNP Paribas (lead arranger) and Citibank (co-underwriter). The transaction reinforced our position as a market leader when it comes to managing experienced third-party equity in large mid-life aircraft deals.
Deal of the year 2016

ELL European Locomotive Leasing (ELL), Vienna, Austria, is a young but already leading lessor in the European locomotive full-service leasing market. Set up in 2014, the company developed swiftly into a prominent position by leasing out the most modern Siemens Vectron electric locomotives, offering the best market prospects in the European rail sector.

ELL approached us and other lenders early 2016 with the request for an extended refinancing facility that would allow optimising the existing facility; provide debt for the future investments in 30 additional state-of-the-art electric locomotives; and support an even further growth potential. In June 2016, the new eight-year term loan and revolving facility for ELL was signed. The security package comprised typical asset-based elements. We acted as Hedging Bank as well as Facility and Security Agent for an international club of six banks, and took the largest debt share.

This transaction improved ELL’s financing structure and pushed its range of operational possibilities. We were pivotal for the closing of this important deal and was again fully recognised as leading lender and reference bank in this landmark transaction.





Land Transport Finance – ELL European Locomotive Leasing
Deal of the year 2016
(1) The targets match the gender quotas DVB Bank SE achieved as at 30 September 2015.
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