Dublin-based public finance bank Depfa Bank has decided to sell its German subsidiary to free up capital for its worldwide expansion.
Depfa has €1.3 billion tied up in Deutsche Pfandbriefbank, a lender to German public institutions, and this capital will be freed for the planned expansion into the US public finance market.
Depfa provides finance for infrastructure projects is keen to increasing its presence in the United States where a soaring budget reached $374.2 billion last year. Rising debt levels are forcing many state governments to issue bonds to finance budgets because of weaker tax revenue.
The bank is also considering a stock split and will propose it to shareholders at the annual meeting on April 26th in Dublin.