International law firm Clifford Chance has advised Oldenburgische Landesbank (OLB) on its first synthetic credit risk transfer transaction, allowing the bank to free up regulatory capital for balance sheet management purposes and further growth.
The transaction involves the issuance by OLB of a credit linked note referencing a corporate loan portfolio and is structured to comply with the requirements for simple, transparent and standardised (STS) securitisations under the EU Securitisation Regulation. The Common Equity Tier 1 capital ratio (CET1 ratio) was improved by around 40 basis points.
Clifford Chance provides ongoing advice to OLB on financial and M&A deals, most recently advising on its acquisition of Degussa Bank AG. OLB plans to use the capital released by the transaction also for the financing of the agreed transaction to acquire Degussa Bank.
The Clifford Chance Team advising OLB comprised partner Oliver Kronat, counsel Kerstin Schaepersmann and Radoslav Lolov as well as senior associate Antonia Walter (all Global Financial Markets, Frankfurt).
