Foreign Payment Transactions
How importeurs cleverly minimize their risks with collections and letters of credit.
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 start of 2020, our small team of heavy hitters has been working in an opportunistic manner to diversify the bank’s portfolio in regional and sectoral terms, with a view to primary and secondary market transactions outside 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. We're thus pursuing an ambitious goal, but at the same time we're not in any hurry. We very carefully examine which investments are a good fit for us and which ones we really want to make.
Above all, the new financing must be right for our bank and fit the existing portfolio – it must also significantly distinguish itself from the latter with clear industry and regional clusters. Looking at things regionally, therefore, 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.