Debitos expands its marketplace by including aviation loans
Debitos, the leading secondary market for loans in Europe, expands its marketplace by including aviation loans, which are currently severely impacted by the pandemic.
Frankfurt, 30 March 2021 – Debitos, the leading secondary market for loans in Europe for banks and investors, announces the expansion of its online NPL trading platform to include aircraft financing currently affected by the pandemic.
The Covid-19 pandemic has had a devastating impact on the whole economy, particularly on the tourism industry. Travel restrictions have decimated the number of tourists and airlines are dependent on government aid. Aircraft loans, previously considered very safe, are now disproportionately affected as a result. Consequently, high risk provisions have to be made, as aircraft can only be used as collateral with large risk discounts. In order to minimize the risks and counteract possible defaults, it makes sense to sell the aircraft loans to investors.
Debitos is the only provider in Europe that is already able to provide a pan-European trading platform for non-performing loans, which is the right answer to the problems of the financial industry. Clients and third parties benefit from the best liquidity available and have access to a pool of more than 1,200 registered institutional investors from 16 countries. Investors benefit from high transparency and the ability to perform remote due diligence as well as credit analysis, virtual data room management, asset negotiation and closing. Debitos simplifies and standardizes the transaction process to ensure that more efficiency and liquidity is available to the secondary market.
Timur Peters, CEO and founder of Debitos, said: “We are closely monitoring the impact of the pandemic on certain industries and, after discussions with our clients, have decided to expand the marketplace. Aircraft financing is a difficult issue for some of our clients and we now offer the possibility to place risks confidentially and quickly on the market. But it is not just the lenders who benefit, the airlines can also operate more flexibly as a result.”
Debitos is the leading secondary market that enables companies, banks and funds to sell their credit exposures on the market via a transparent auction-based online transaction platform. The platform leverages the digitisation of the entire sales process and can reduce the expected transaction duration to 3-8 weeks compared to the 3-6 months of the traditional process. Debitos was founded in Frankfurt in 2010 and has since successfully sold more than 640,000 loans in 16 countries. There are now more than 1,200 investors registered on the Debitos platform from all over Europe.