German lender Nord/LB has confirmed it has sold a huge ship-loan portfolio to Cerberus Capital Management.
The 263-vessel book - known as "Big Ben" - is worth more than EUR 2.6bn ($2.9bn), it said.
Nord/LB, which last week decided to exit ship financing, said that with the completion of the transaction, its non-performing loan (NPL) portfolio has been cut to EUR 4.9bn, from EUR 7.5bn at the end of 2018.
"The parties agreed to maintain confidentiality on the terms of the transaction," it added.
Nord/LB was said to have been marketing two ship loan portfolios — Big Ben and Tower Bridge — worth EUR 2.5bn and EUR 4bn, respectively.
Cerberus and Centerbridge Partners failed in a bid to invest in the bank earlier this year, having offered to buy 49.8% of the core assets of the state-owned lender and pump in more than $1bn.
But Cerberus was then tipped to have sealed a deal for Big Ben.
The fund was one of the buyers of HSH Nordbank last year.
Nord/LB quit ship financing as it looks to restructure with a capital injection of EUR 3.5bn.
The bank hopes to push through a refinancing deal involving its state owners and the German Savings Banks Association (DSGV) in the third quarter.
It has been shedding non-performing loans in shipping at a fast rate and has taken huge provisions on the maritime book in recent years.
