Depfa pushing for role in conference centre funding

IFSC-based bank Depfa wants to organise funding for the €400 million National Conference Centre and the €100 million-plus new Criminal Court complex close to the Phoenix Park in Dublin.

The bank, which has its roots in Germany, is pushing for involvement in both projects as it raises its funding profile in the Republic.

"We've got a pipeline of 20 projects we're following on the island," said Paul Leatherdale, managing director and head of infrastructure finance with the bank.

Mr Leatherdale was speaking after Depfa released fourth-quarter numbers that failed to meet market expectations.

The bank reported a net profit of €98 million for the final three months of 2005, coming in below expectations for a €125 million profit. Profits for the full year amounted to €475 million, which was 11 per cent down on 2004.

Thomas Kolbeck, Depfa's deputy chief executive, attributed the apparent 2005 shortfall in part to a one-time profit of €50 million included in the 2004 numbers. He also cited trading problems in emerging markets.

"We still see that €475 million after taxes is a good result," said Mr Kolbeck.

He acknowledged that the bank may now find it difficult to meet its 2006 target for profits of €600 million, but said it might still be possible if it had "a reasonably good trading year".

Depfa's biggest opportunities this year lie in its "bread and butter" project financing, infrastructure and client project services, according to Mr Kolbeck.

In the Republic, Depfa already has an exposure of about €60 million to infrastructure projects through the Dundalk bypass and the schools public/private partnership programme.

Mr Leatherdale said it was hoping to lend "a couple of hundred million" to the consortium headed by Treasury Holdings and Irish Rail that is the preferred bidder to build the State's first national conference centre.

He also noted that the bank is "supporting one of the bidders" in the procurement process for the new Criminal Court complex, which he said is a €150 million project.

Depfa is also interested, according to Mr Leatherdale, in gaining exposure to the growing band of Irish environmental schemes such as landfill developments and alternative waste projects.

In the North, the bank is working on becoming involved with the M1 Westlink and the waste water project. "We're confident we'll get some exposure," Mr Leatherdale said.

Depfa said it planned to increase its dividend to 25 cent per share, up from 17 cent in 2004.