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 KvarnstrÃ¶m, 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 Bankâs non-strategic asset portfolio in the beginning of 2003, this business unit managed a volume of â¬36 billion of loan exposure, of which â¬7.2 billion was booked in North America. As of September 2003, IRU had managed to reduce the total portfolio by some â¬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 â¬511 million s sold), as well as an auction of â¬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 263â4960
Clas RÃ¶hl Tel. +49 (0)69 263â52947
Katerina Piro Tel. +49 (0)69 263â81774