Land Transport Finance – Products
DVB's Land Transport Finance team has long-standing experience in structuring and financing assets in the dynamic land transport market. Our competent and flexible relationship managers in Frankfurt/Main and New York City offer a broad range of products and services – covering financing, advisory and research.
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Structured Asset Lending
The focus of our financing business is on traditional lending, comprising financings collateralised by land transport assets in Germany and abroad, including rail equipment (rail rolling stock in the freight and passenger sectors) as well as railway-related fleets such as chassis.
In this area we offer customised financing structures, be it of a shorter nature (such as bridge facilities) or complex, structured mid- to long-term asset financing solutions. In many instances, we are also approached regarding the assumption of residual value risks, for which we are delighted to make quotations. Various financings are concluded as non-recourse transactions (i.e. with no recourse to a sponsor).
We place great importance on the relationship and the intensive co-operation with our clients. Through up-to-date intelligence on markets and assets, our specialised Land Transport Research supports us in our endeavours to provide efficient financing solutions to our clients.
Risk Distribution & Loan Participations
Our Financial Institutions and Syndications team is globally responsible for our syndication activities and assists our Transport Finance and Investment Management divisions in raising non-public market debt or equity.
One of Financial Institutionsand Syndications' tasks is to find suitable bank partners to join DVB in its financing of transport assets – either on an underwritten or book building basis. In sourcing liquidity in the form of mezzanine and equity, the team globally acts as central contact and co-ordination point for financial institutions such as banks, hedge funds, private equity funds, sovereign wealth funds, insurance companies, pension funds, and supranational funds.
Since our subsidiary ITF International Transport Finance Suisse AG ceased marketing activities in November 2015, our Financial Institutions and Syndications team is also the contact, to all transport segments, for collateralised syndicated loans and portfolio transactions in the international bank market.
Our Financial Institutions team operates out of London, but with respect to the North American market, the team works with DVB Capital Markets LLC in New York.
Corporate Finance Solutions
Our DVB Corporate Finance team provides transport finance clients with financing solutions and supports them in raising capital via public offerings and private placements of equity, debt securities and structured asset finance products. Specifically, DVB Corporate Finance offers solutions in the following areas:
- Mergers & Acquisitions (M&A), i.e. traditional sell-side and buy-side advisory, alongside divestitures, spin-offs, joint ventures, Management-Buy-Outs/Leveraged-Buy-Outs, privatisations, and valuation and fairness opinions
- Corporate Advisory, i.e. balance sheet optimisation, strategic alternatives assessment, restructurings, liquidation management, and deal negotiation support
- Equity & Debt Capital Markets, i.e. primary and follow-on equity offerings, private equity and debt placements, equity-linked products, mezzanine capital, preferred securities, convertible bonds, and high yield bonds – via public issues as well as private placements in accordance with rule 144A of the US Securities Act
- Structured Asset Finance, i.e. asset backed securities, charter monetisation, project bonds, receivables securitisation and aircraft enhanced equipment and trust certificates
The team operates via our New York, London, and Oslo offices. In the United States, it acts through DVB Capital Markets LLC, a broker/dealer registered with the Securities and Exchange Commission and regulated by the Financial Industry Regulatory Authority. DVB Capital Markets LLC has a Business Continuity Plan and will be available for all clients in case of an emergency. In Europe, the team acts through DVB Bank SE (London Branch), regulated by the Financial Conduct Authority, and through DVB Bank SE (Nordic Branch), regulated by Finanstilsynet.
DVB entered rail investments in 2007, when the Stephenson Capital Fund was launched. With these fund management activities, we were able to expand our traditional product offer of senior and junior financings. Therefore, we can cater for all levels of risk – including equity – when financing land transport investment projects.
The railway fund is a joint venture with a leasing company; it owns a fleet of several hundred freightcars managed by our joint-venture partner.
Asset & Market Research
We leverage the capabilities of our in-house Land Transport Research when structuring optimal financing solutions. The focus of our research is on markets and technologies for rail and road transport vehicles. In addition to valuations of such assets, our Land Transport Research analyses fundamental trends and regulatory requirements, to the extent that these have an impact upon the value and fungibility of the transport assets we finance.
We actively offer advisory services to our clients on current industry developments, also including asset valuations or analyses of investment opportunities – thus providing the basis for strategic corporate decisions.