Half-Year Results 2020
Diversified Lendingintroduces itself
Diversified Lending is a new division of the Hamburg Commercial Bank and the wide range of its loan products and international focus covers the bank’s entire value chain. Since the beginning of 2020 a small team of experts works with an opportunistic approach on diversifying the bank’s portfolio, internationally as well as in its scope, by primarily looking at primary and secondary market transactions outside of Germany.
Diversified Lending is a classic win-win deal: for our existing customers, for our new customers and for us as a bank, since we benefit from a broadened loan portfolio in regional and sectoral terms, thereby minimizing risks and at the same time creating leeway for further lending.
The aim is for the lending financed by the new division to amount to around two billion euros by 2022. This is an ambitious goal which is not rushed but future investments are analysed in detail to make sure it is a good fit for the bank and worth committing to.
Above all, the new financing must be right for our bank and match the existing portfolio – it must also significantly distinguish itself from the latter with clear industry and regional clusters. Therefore, looking at things from a global perspective, commitments in Western Europe and North America are particularly interesting. In addition, the team, led by Divisional Head Jens Thiele, is focusing particularly on industries and companies that are less susceptible to economic fluctuations. Conservative, long-term-oriented, and moreover sustainable business models, as well as adequate free cash flow, are further important selection criteria. In addition, the company must have a rating of at least BB–.
When establishing contact with potential new customers, we can draw on our close network of contacts with other banks and investors, a network which we have nurtured and maintained for decades.
Diversified Lending offers a unique opportunity to develop new target groups and new customers. We look forward to our mutual exchange and dialogue.