Pbb, IBB launch German resi lending JV

pbb Deutsche Pfandbriefbank and Investitionsbank Berlin (IBB) have agreed upon a cooperation for the financing of residential units in Berlin.

Under the agreement, IBB has granted a global loan to the tune of €50 mln to pbb, which in turn extends loans to Berlin-based housing and real estate companies and refinances these loans by issuing Pfandbriefe or covered bonds.

The global loan from IBB is used to cover the portions of such loans which are not eligible for inclusion in Pfandbrief coverage.

‘We combine the benefits of attractive Pfandbrief funding terms with the refinancing terms offered by IBB as a public-sector bank,’ commented Bernhard Scholz, member of the Management Board of pbb Deutsche Pfandbriefbank. ‘In addition, as a specialist real estate lender, we support our clients with sector-specific expertise. This allows us to strengthen housing and real estate companies, and thus to indirectly contribute to enhancing the supply of affordable housing.’

Ulrich Kissing, chairman of the Management Board of Investitionsbank Berlin (IBB) added: ‘As a public sector development bank, we are delighted that this global loan deepens our network of cooperation with banks whilst supporting the institutional housing sector in Berlin through financings at attractive rates.’