Deutsche Bank has confirmed earlier reports that it is selling a $1bn portfolio of shipping loans to an entity owned by funds managed by Oak Hill Advisors and Varde Partners, the latest example of the huge clear out of Germany’s bloated and troubled ship finance scene.
In a release, however, Deutsche Bank stressed it was not exiting ship financing.
“Following this disposal and other derisking strategies we have implemented, the bank will be left with a performing and a run-off shipping book and can now focus on ship finance areas where it will continue to add value to clients, within defined risk parameters,” the bank said.
