OLB successfully completes first synthetic risk transfer
- Oldenburg | 31. März 2023
- Important milestone for sustainably efficient balance sheet management and further growth
- Successful completion of the transaction underlines OLB's solidity and stability
- Common Equity Tier 1 capital ratio (CET 1 ratio) improved by around 40 basis points
Oldenburgische Landesbank AG (OLB) successfully completed its first synthetic risk transfer. Under the transaction, potential default risks were transferred to investors, but the actual contractual relationship between OLB and its borrowers remained unaffected.
As a result, the Bank has hedged a portfolio of loans with corporate clients through the transaction and reduced its risk-weighted assets by up to € 450 million initially. The Bank's Common Equity Tier 1 capital ratio (CET 1 ratio) was improved by around 40 basis points. OLB plans to further expand this instrument and to use the capital released by the transaction for continued organic and inorganic growth, including the financing of the agreed transaction to acquire Degussa Bank.
"With our first synthetic risk transfer, we have strengthened our balance sheet and will be able to manage it even more efficiently in the future," says Dr Rainer Polster, Chief Financial Officer of OLB. "We have been working towards the securitisation transaction for twelve months as part of our strategic balance sheet efficiency initiatives. The fact that we succeeded in closing the deal now as targeted, against the backdrop of the recent market turbulence, underlines OLB’s solidity and stability."
OLB was advised by Clifford Chance, Iconicchain, UniCredit and SKS Group regarding the transaction.
About the OLB
Oldenburgische Landesbank AG (OLB) is a modern, customer-oriented bank with roots in northwestern Germany and strong regional and international expertise. OLB operates in two strategic business segments: Private & Business Customers and Corporates & Diversified Lending. OLB serves more than 600,000 customers and has total assets of approximately EUR 24 billion.
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