In International Shipping News 22/05/2015
Bonds of HSH Nordbank AG tumbled the most since November 2010 after a German magazine reported the shipping lender may be split in two as part of a restructuring.
The bank’s 430 million euros ($478 million) of subordinated floating-rate notes due February 2017 fell 8.2 cents on the euro to 78.8 cents, the lowest since Oct. 22, data compiled by Bloomberg show.
Hamburg mayor Olaf Scholz is considering breaking up the lender, Manager Magazin wrote Thursday, without saying where it got the information. Bank spokesman Mirko Wollrab declined to comment on the report.
The world’s second-largest financier of vessels is battling with bad loans as the container-shipping market suffers a seventh year of overcapacity. The states of Hamburg, where HSH is based, and Schleswig-Holstein own 85 percent of the bank after bailing it out in 2009.
HSH’s 500 million euros of undated 7.5 percent junior subordinated notes also plunged, falling 8.7 cents on the euro to 35 cents, the lowest level since April, data compiled by Bloomberg show.
The biggest maritime lender after DNB ASA of Norway held 21 billion euros in shipping loans at the end of last year, about half of which were non-performing, the company said in April.
Source: Bloomberg
Bonds of HSH Nordbank AG tumbled the most since November 2010 after a German magazine reported the shipping lender may be split in two as part of a restructuring.
The bank’s 430 million euros ($478 million) of subordinated floating-rate notes due February 2017 fell 8.2 cents on the euro to 78.8 cents, the lowest since Oct. 22, data compiled by Bloomberg show.
Hamburg mayor Olaf Scholz is considering breaking up the lender, Manager Magazin wrote Thursday, without saying where it got the information. Bank spokesman Mirko Wollrab declined to comment on the report.
The world’s second-largest financier of vessels is battling with bad loans as the container-shipping market suffers a seventh year of overcapacity. The states of Hamburg, where HSH is based, and Schleswig-Holstein own 85 percent of the bank after bailing it out in 2009.
HSH’s 500 million euros of undated 7.5 percent junior subordinated notes also plunged, falling 8.7 cents on the euro to 35 cents, the lowest level since April, data compiled by Bloomberg show.
The biggest maritime lender after DNB ASA of Norway held 21 billion euros in shipping loans at the end of last year, about half of which were non-performing, the company said in April.
