NORD/LB Norddeutsche Landesbank has decided to exit the aircraft financing sector following a strategic review. As part of this decision, the bank has reached an agreement with Deutsche Bank to sell a substantial portion of its aircraft financing portfolio, valued at €1.67 billion. The completion of this transaction is subject to approval by antitrust authorities and is anticipated to be finalised in the latter half of 2024. The purchase price remains undisclosed by mutual agreement. The remaining portfolio, approximately €1.1 billion, will be retained within the NORD/LB Group and gradually phased out, with no new business activities planned in this segment.
This move is part of NORD/LB’s strategic realignment, focusing more intently on its core business areas after a successful transformation. Jörg Frischholz, CEO of NORD/LB, stated, “With the consistent implementation of our strategy, we are focusing on continuously increasing the bank’s profitability. This decision represents the next logical step, enabling us to direct more resources towards our growth areas such as renewable energies, commercial real estate and corporate customers, which we can strengthen with the capital released. We did not take this decision lightly, as aircraft financing has been a significant part of our business model for many years.”
NORD/LB has been involved in the aircraft financing business globally for over forty years. As of March 31, 2024, its aircraft portfolio is valued at around € 2.75 billion, comprising approximately 300 financed aircraft and engines. The majority of this financing, amounting to €1.67 billion, will be transferred to Deutsche Bank starting from the end of June. Deutsche Bank was selected through a competitive bidding process involving numerous national and international parties, highlighting the high quality and demand for NORD/LB’s aircraft portfolio. (€1.00 = US$1.08 at time of publication).
