Siemens has been
granted a banking licence in Germany, enabling it do structured
loans in the country. It will mean greater flexibility in the way
Siemens is able to raise funds on the financial markets through
deposit-taking and from central bank funding.
Siemens said it would expand
the product portfolio of Siemens Financial Services, particularly
in financing sales of Siemens products, with industry, energy and
health care the areas of focus.
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Roland Chalons-Browne, CEO of
Siemens’ Financial Services Division, said: “The new entity will
increase opportunities for structured finance deals in Germany,
such as project finance and larger investment loans. The main
purpose of Siemens Bank will be to improve lending and credit
financing in order to shore up sales financing.”
Health care is expected to
represent a smaller portion of the bank’s portfolio, as the
targeted transaction volumes for capital investment loans and
project finance are between €5m and €50m. A chain of hospitals
could possibly fit into this picture; however, individual medical
practices will be less likely to join. At the moment, the core
demand for project finance originates from energy projects,
especially renewables, but also fossil, and from transport
projects.
Siemens Bank will be based in
Munich and will lend either on its own or with other parties in
syndicated transactions.
Chalons-Browne said: “The establishment of Siemens Bank
strengthens the three columns within the company’s financial
operations: sales financing for Siemens; profitable growth in
fields that involve Siemens’ expertise; and management of the
financial risks according to the banking standards.”
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