HSH Nordbank has agreed a $500m loan facility from China Development Bank and the German bank is in talks with the Chinese state-owned lender over how to further their business ties.
The announcement by HSH Nordbank raises the possibility of closer links with China Development Bank including a strategic partnership, and will lead to speculation about Chinese interest in eventually taking a stake in HSH Nordbank, although such a move is not thought to be under discussion at the moment.
HSH Nordbank is one of the more troubled of the country’s public-sector Landesbanken. It lost billions during the financial crisis with its exposure to structured credits and international property finance as well as the cyclical downturn in shipping and is not expected to be profitable until next year.