WestLB Manages Debts for Regional Association of Westphalia-Lippe
Municipal coffers are empty, debts are mounting and interest payments are weighing heavily on the local authorities. WestLB AG´s professional debt management concept is able to provide relief. The Regional Association of Westphalia-Lippe has now awarded the Bank its biggest-ever mandate. During the next five years WestLB AG will employ derivatives to optimise the association´s € 325 million debt portfolio and reduce interest expenses substantially. According to Norbert Strickmann, derivatives expert at WestLB Global Financial Markets, the bankers do not speculate on the stock exchange nor do they incur risks which the association does not wish. Strickmann: "Due to the strong demand on the part of the local authorities, we already manage a portfolio of € 1.5 billion on behalf of more than a dozen clients."
The Regional Association of Westphalia-Lippe is fully convinced of WestLB AG´s overall concept. Dr. Christiane Uthemann, Chief Financial Officer of the Regional Association, said: "We have taken a very close look at the debt management issue and examined a number of offers. WestLB´s integrated approach was precisely what we were looking for."