Lombard loans in Germany.
Private credit against Germany-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against Germany-listed shares is credit secured by a pledge of equity listed on the Deutsche Börse. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment. Known locally in some markets as “Lombardkredit”, the instrument is the same: a loan secured by a pledge of listed shares.
- Lombard loans are arranged against shares listed on the Deutsche Börse (FWB).
- The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
- Loan-to-value is calibrated to the specific position, funded in EUR or cross-currency.
- Structured under the BaFin regime, with disclosure from 3%.
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal Germany venue: Deutsche Börse / Frankfurter Wertpapierbörse (FWB). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.
Regulator and disclosure
Shares listed in Germany are regulated by Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). Substantial-shareholding disclosure is triggered from 3%, and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.
Funding, custody, and structuring
Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in EUR or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing.
| Listing venue(s) | Deutsche Börse / Frankfurter Wertpapierbörse (FWB) |
|---|---|
| Regulator | Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) |
| Currency | EUR (cross-currency available) |
| Disclosure threshold | From 3% substantial-holding disclosure |
| Principal indices | DAX, MDAX, SDAX, TecDAX |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Considering a Lombard loan against a Germany-listed position?
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Disclosure and regulation
Germany runs one of Europe's most granular ownership regimes. Under the WpHG a voting-rights holder notifies BaFin at 3%, then at 5, 10, 15, 20, 25, 30, 50 and 75%, so positions here leave a detailed footprint. A Lombard loan does not by itself cross any of these lines — the shares stay the client's, with dividends and votes retained — but the fine step structure means we watch carefully where a large holding rests against the lower marks. Documentation for a client close to a threshold, or exposed to takeover mechanics, is drawn so that even enforcement would not force an unplanned disclosure.
An illustrative example
To illustrate, an entrepreneur holding €35 million of a DAX constituent might take a Lombard loan at 60% loan-to-value, near the upper end of our 20–65% range, making about €21 million available. The holding stays in the client's name, dividends and voting rights are preserved, and there is no sale. The advance can be drawn in euro or in another currency where the client's outgoings sit. As always the figures are rounded and hypothetical, offered to show the shape of a facility rather than to indicate any rate or commercial term.
Illustrative only — not an offer, a quotation, or a commitment to lend.