IKB International S.A. in Liquidation

IKB International S.A. in Liquidation was a Luxembourg-incorporated banking subsidiary of IKB Deutsche Industriebank AG, a German specialist bank for small and medium-sized enterprises. Established in 1979 under Luxembourg law, the company was licensed to conduct all kinds of banking and financial business. Its core activity was lending to German mid-sized companies, and over time it also became an internal competence centre for foreign-currency financing, structured finance and financial risk management. From 2000 the Financial Risk Management business for mid-sized corporates was systematically expanded. In 2003 IKB International founded the joint venture IKB CorporateLab in Luxembourg together with UniCredit Banca Mobiliare to develop derivatives and distribute them to mid-sized companies. The sale of HypoVereinsbank to the UniCredit group in 2005 removed the business basis for that joint venture, which was discontinued the same year. Also in 2005, after a group restructuring project made it possible to administer foreign-currency loans from Germany, the board of IKB International decided to stop lending in Luxembourg entirely and to concentrate on Financial Risk Management, to be run from German branches. The company increasingly invested in AAA ABS portfolios to stabilise its interest result. From 2007, write-downs on those securitised portfolios during the financial crisis pushed the company deep into loss, and it could only be kept afloat through capital measures by its parent, IKB Deutsche Industriebank AG. Under EU requirements the existing portfolio business was to be run down by 2012 and the Luxembourg location abandoned. IKB International S.A. ceased business operations on 31 March 2011 because of EU conditions imposed on the IKB group and has been continued as a winding-up company since 1 April 2011. It returned its banking licence under the Luxembourg financial-sector law of 5 April 1993, as amended, on 31 March 2011.

IKB International S.A. was founded in 1979 under Luxembourg law as a subsidiary of IKB Deutsche Industriebank AG, the German specialist bank for small and medium-sized enterprises. It was authorised to carry out all banking and financial transactions, and its core business was the granting of credit to German mid-sized companies. Over the years it also served as an internal competence centre for foreign-currency financing, structured finance and financial risk management. From 2000 the Financial Risk Management business field for mid-sized companies was systematically expanded. To support this, in 2003 IKB International S.A. founded the joint venture IKB CorporateLab in Luxembourg together with UniCredit Banca Mobiliare, with the aim of developing derivatives and distributing them to mid-sized companies. The sale of HypoVereinsbank to the UniCredit group in 2005 removed the business basis for the joint venture, and IKB CorporateLab was discontinued that same year. Also in 2005, following the successful implementation of a group restructuring project that made it possible to administer foreign-currency loans in Germany as well, the board of IKB International S.A. decided to discontinue the lending business in Luxembourg completely in order to concentrate on Financial Risk Management, which would in future be operated from the German branches. In addition, the company increasingly invested in AAA ABS portfolios in order to stabilise its interest result. As a result of write-downs on the securitised portfolios during the financial crisis, the company fell heavily into loss from 2007 and could only be maintained through equity measures by its parent, IKB Deutsche Industriebank AG. Under EU requirements the existing portfolio business was to be reduced by 2012 and the Luxembourg location then abandoned. IKB International S.A. ceased business operations on 31 March 2011 because of EU conditions for the IKB Deutsche Industriebank group and has been continued as a winding-up company since 1 April 2011. It returned its banking licence under the Luxembourg financial-sector law of 5 April 1993, as amended, on 31 March 2011.

• 2011

  Business operations cease on 31 March 2011; banking licence returned; company continued as a winding-up entity from 1 April 2011.

• 2007

  Write-downs on securitised portfolios during the financial crisis push the company into heavy losses.

• 2005

  IKB CorporateLab discontinued after the sale of HypoVereinsbank to UniCredit; board decides to stop Luxembourg lending and focus on Financial Risk Management.

• 2003

  Joint venture IKB CorporateLab founded in Luxembourg with UniCredit Banca Mobiliare to develop and distribute derivatives.

• 2000

  Systematic expansion of the Financial Risk Management business field for mid-sized companies begins.

• 1979

  IKB International S.A. founded under Luxembourg law as a subsidiary of IKB Deutsche Industriebank AG.

Internal competence centre and Luxembourg banking platform of IKB Deutsche Industriebank for mid-sized German corporate clients, later focused on financial risk management before being wound up.

• Corporate lending to German mid-sized companies

• Foreign-currency financing

• Structured finance

• Financial risk management

• Derivatives (via IKB CorporateLab)

• AAA ABS portfolio investments

1. 1IKB – Sparen, Anlegen & Finanzprodukte für Privatkundenikb.de
2. 2IKB International – Wikidatawikidata.org
3. 3IKB International – Wikipedia (German)de.wikipedia.org