German bank to open ship finance centre in Dubai

The bank, a subsidiary of international banking major UniCredit and headquartered in Hamburg, Germany, is planning a "substantial expansion" within its ship finance business, quoted Torsten Temp, executive manager for the sector. "Starting from Dubai, HVB is looking to expand its ship finance business in the region to India and Pakistan as well," Temp said. Together with financing subsidiaries in Singapore, Oslo and Piraeus, Greece, the sector then will be pooled in the new 'Unicredit Global Shipping' department. In 2009, another subsidiaries may be opened in North America, Turkey and Russia. Its ship finance business has remained untouched by the international credit squeeze so far, the bank said, and is not as prone to speculation as other sectors like real estate. HVB's credit volume for ship financing, container leasing and other offshore maritime activities amounted to eight billion euros last year, adding 1.5 billion euros from Unicredit's business in the same sector. The growth rate in 2007 has been more than ten per cent, Temp said, expecting a double digit growth this year as well. The bank's competence centre for the worldwide ship finance business will remain in Hamburg, one of Europe's largest commercial ports besides Rotterdam, Netherlands.

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