Restructuring German lender Nord/LB has banked EUR 2.15bn ($2.43bn) from two bond sales.
Subsidiary Deutsche Hypo issued a benchmark mortgage securities issue with a 10-year term that was slightly oversubscribed at EUR 750m, it said.
The bond was primarily placed with institutional investors in Asia and Europe and carries a coupon of 0.75%.
And a Luxembourg subsidiary sold a five-year bond that was significantly oversubscribed at EUR 1.4bn. The coupon is 0.375%.
Last month, the bank turned down an investment bid from two private equity funds, Cerberus Capital Management and Centerbridge Partners, but entered talks over a refinancing with the German Savings Banks Association (DSGV).
At the same time, the bank agreed to sell one of its ship-financing portfolios to an unnamed external investor for about EUR 2.7bn.
The deal comprised 263 ships with an NPL portion of 90%.
The transaction was preceded by a confidential bidding process which was carried out separately and independently from the bidding process involving the minority stake.
However, Cerberus was said to have been in separate talks to snap up the bank’s shipping loan portfolios and was tipped as the buyer.
Nord/LB was believed to be marketing two ship loan portfolios — denominated Big Ben and Tower Bridge — worth €2.5bn and €4bn, respectively.
