Dresdner Bank’s Institutional Restructuring Unit (IRU) sells nearly €2 billion of assets - largest transaction to date

The Institutional Restructuring Unit (IRU) of Dresdner Bank has sold a portfolio of nearly €1.9 billion of North American loans – its largest transaction to date. The portfolio was sold during a six-week period in November and December 2003 and the process involved individual assets sales as well as smaller auctions.

The portfolio sold included both performing as well as distressed loans. Bidders included investment banks and hedge funds worldwide. Dresdner Kleinwort Wasserstein acted as financial advisor to the transaction.

"This was our largest and fastest transaction to date," says Jan Eric Kvarnström, CEO of the IRU and member of the Dresdner Bank Board of Managing Directors. "We have stepped up the speed of reducing our portfolio since late October and successfully seized on the large appetite in the secondary loan market right now."

"The IRU is making better progress than expected," says Herbert Walter, Chairman of the Dresdner Bank Board of Managing Directors. "The rapid dismantling of the non-strategic loan portfolio allows us to concentrate more intensely on our strategic business and therefore our customers and markets."

When IRU took up its activities to reduce the Bank’s non-strategic asset portfolio in the beginning of 2003, this business unit managed a volume of €36 billion of loan exposure, of which €7.2 billion was booked in North America. As of September 2003, IRU had managed to reduce the total portfolio by some €12 billion.

Other IRU milestone transactions to date include an auction sale of North American and European loans to a single bidder in May 2003 (total of €511 million s sold), as well as an auction of €125 million of Asian loans in September to a number of bidders. The other reductions have been achieved via individual asset sales, loan limit reductions, pre-payments, contractual maturities and amortizations.

Simone Stein Tel. +49 (0)69 263–4960
Clas Röhl Tel. +49 (0)69 263–52947
Katerina Piro Tel. +49 (0)69 263–81774

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