Silvana Borgatti’s Post

We were delighted to sponsor the APLMA (Asia Pacific Loan Market Association) Private Credit Conference in Singapore yesterday, where our partner Rahul Chatterji moderated a vibrant panel discussion on the sponsor perspective on private credit. Our key takeaways from the conference… 💡 𝗪𝗵𝗮𝘁’𝘀 𝗮 𝗯𝗲𝘁𝘁𝗲𝗿 𝘀𝗼𝘂𝗿𝗰𝗲 𝗼𝗳 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗳𝗼𝗿 𝘀𝗽𝗼𝗻𝘀𝗼𝗿𝘀, 𝗯𝗮𝗻𝗸 𝗼𝗿 𝗰𝗿𝗲𝗱𝗶𝘁 𝗳𝘂𝗻𝗱 𝗹𝗲𝗻𝗱𝗶𝗻𝗴? The nature of funding that a sponsor selects will be highly situational. It will be the whole package, rather than pricing alone, that drives the market. For the right deal, sponsors do place a premium on the flexibility that credit funds can offer on terms, for example the ability to stretch leverage, accept PIK structures, and lighter covenants. In addition, there are some sectors/projects that a credit fund can lend into which might not otherwise be bankable. However, price is also an important factor (although likely to converge over time), and the package of products that a bank can offer (fx, revolving facilities etc.), bringing breadth and scale across the market, may also be important. 💡 𝗖𝗿𝗲𝗱𝗶𝘁 𝗳𝘂𝗻𝗱𝘀 𝘃𝘀 𝗯𝗮𝗻𝗸𝘀 – 𝗰𝗼𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝗿𝘆 𝗽𝗹𝗮𝘆𝗲𝗿𝘀 𝗼𝗿 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗼𝗿𝘀? On the perennial question of whether credit funds are going to drive banks out of business, the panellists agreed that there is a role for both to play, although sponsors are likely to have more solutions to choose from going forward as the private credit market across APAC grows. Credit funds and banks have many opportunities to work together - for example, on senior/mezzanine (or 1L/2L) structures, term and revolving facilities (with banks providing the SSRCF), and banks helping credit funds increase their returns and deploy capital more efficiently by providing back leverage. 💡 𝗔𝘂𝘀𝘁𝗿𝗮𝗹𝗶𝗮 𝗶𝘀 𝗮 𝗺𝗮𝘁𝘂𝗿𝗲 𝗺𝗮𝗿𝗸𝗲𝘁, 𝗯𝘂𝘁 𝘄𝗵𝗮𝘁’𝘀 𝘁𝗵𝗲 𝗻𝗲𝘅𝘁 𝗯𝗶𝗴 𝘁𝗵𝗶𝗻𝗴? 𝗪𝗵𝗮𝘁’𝘀 𝘁𝗵𝗲 𝘀𝗲𝗰𝗿𝗲𝘁 𝘀𝗮𝘂𝗰𝗲? The Australian market is mature and arguably the strongest in APAC for private credit. This is driven by the fact that Australia has a strong rule of law, reliable regulators and a single currency. The Indian market shares many of these characteristics so is a strong contender for sustained growth and is growing quickly. However, in the context of sponsor borrowers, the hope is that the credit funds will follow where the sponsors are going. The good news is that there are strong reasons to believe that private credit across the region will grow given the predicted growth in GDP, and that both banks and credit funds will look to adopt more innovative strategies to match their clients’ needs. #PrivateCredit #CreditFunds

We did not need any further evidence of the conducive shape of the current markets, but it is always helpful to be reassured, and what better way to do so than launching the Inaugural Green Senior Preferred trade for BPER Banca. The investor reaction was nothing short of exceptional, with the books peaking at well over 6.5x times the transaction size, allowing the issuer to achieve a number of impressive targets: - a print inside fair value - 40bps of tightening from IPTs - the largest book for a senior trade issued by BPER - a landing point easily comparable with fully IG credits What this deal teaches us: the importance of the incredible amount of marketing done over months/years, a positive rating trajectory, a truly credible ESG strategy, and the fundamental investor outreach done post mandate announcement, key to build in advance the needed traction for such a smooth execution. Congratulations to the BPER team Gianluca Caniato Luca Fava MARCO BIALE Fabio Colella for the fantastic work and thank you for trusting Santander Corporate & Investment Banking to be a partner in this strategic transaction. Abraham Douek Fabrizio Zenoni Efrem Osvaldo Bertulli Juan Carlos Sanchez Francesco Mordà Rocco Scalia Vikram Gandhi Mike Gregson Govind Grewal João Mayo Stanislas de Bazelaire Yannis Gougoulias Matteo Meynier https://lnkd.in/emQDd5EC

A pleasure once again to support Santander UK on their latest foray into the Covered Bond market, further progressing their 2024 secured issuance through a €1.5bn 5yr trade which landed at MS+40bps. Having been absent from the EUR Covered space for 2 years (last print in March-22), it was particularly positive to see the level of engagement and participation from their continental European investor base. In what’s largely been an undersupplied EUR Covered market (in the non-EU issuer space at least) in 2024, SANUK’s trade further highlights the pent-up demand for UK paper from Europe, which would be supportive of further supply to come. Not only were SANUK able to tighten pricing 7bps from Guidance (implying negative new issue concessions), but this trade saw their largest ever orderbook (which was of high quality) on a EUR Covered whilst also meeting their diversification objectives with only ~35% of final allocations coming out of the UK. Once again, thank you to the SANUK team (Tom Ranger, Chris Heath, Martin McKinney, Jasmine Panesar, Jamie Adams, Nikita Dudhaiya, Vassilios Sampanis, Hollie Pearson & George Centa) for trusting Santander Corporate & Investment Banking to act as Global Co-ordinator on this transaction. SCIB: Abraham Douek, Ben Warner, Morgan Croucher, David Loughran, George Spreckley & David Hague

“In 2023, we had to adapt to a new environment characterised by rate hikes, geopolitical risk and market volatility. This created tension for borrowers and led to a sharp decrease in overall volumes. Most of the borrowers across EMEA chose us as a trusted partner to help them through these challenges. We have probably the widest client base in Europe and very deep relationships with most of our clients. This allowed us to help them tap the right windows across all loan segments — whether that was investment grade, leveraged, asset financing or ESG oriented” says BNP Paribas’ co-head of investment grade finance, Nicolas Rabier. BNP Paribas’ ability to guide successful transactions home in the hardest of conditions won them the GlobalCapital’s Loan House of the Year, Best Arranger of Western European Loans, Best Arranger of French Loans and Most Innovative Bank for ESG Lending awards in this year’s Syndicated Loan Awards. The bank was also involved in the financing for the acquisition of Messer, which won Deal of the Year, M&A Loan of the Year and German, Swiss and Austrian Deal of the Year. In addition to winning the Most Innovative Bank for ESG lending and the bank was involved in the Sustainability-Linked Loan of the Year for Porsche. Access the free-to-read article to hear Nicolas Rabier’s thoughts about what lay behind the firm’s success and other stand out deals the bank was involved in, in 2023: https://lnkd.in/e9DswyVw Sponsored by BNP Paribas #GlobalCapitalAwards #bank #banking #ESG #sustainability

🌱Banco Bilbao Vizcaya Argentaria’s commitment to sustainability goes together with the growth in corporate and investment banking. At #BBVACIB, we believe that the future of banking lies in financing a low-carbon economy. In an exclusive interview with Euromoney, Javier Rodriguez Soler, our Global Head of Sustainability and Corporate & Investment Banking, outlines how BBVA is positioned to play a leading role in this transformation. 🗣️ “The goal is not balance-sheet management. It’s to help those clients who are investing in the decarbonisation opportunity”, states Javier Rodríguez Soler.   📖Read the article here 👉 https://lnkd.in/d5a-jZBk   #CorporateAndInvestmentBanking #BBVACorporateFinance #SustainableBBVA

Rarely has having a bank with the expertise to navigate uncertain markets been so important to borrowers as in 2023. One firm in particular stood out for its ability to guide successful transactions home in the hardest of conditions. The winner of GlobalCapital’s Loan House of the Year, in addition to the Best Arranger of Western European Loans, Best Arranger of French Loans and Most Innovative Bank for ESG Lending awards in this year's Syndicated Loan Awards is BNP Paribas. GlobalCapital spoke to Nicolas Rabier, the bank’s co-head of investment grade finance, about what lay behind the firm’s success and some of the stand out deals from the past year. Article highlights: - Factors that contributed to BNP Paribas’ dominance in the market - How the bank structures its loan coverage to ensure it remains a leading player - Other stand out transactions for the bank in 2023 - BNP Paribas’ view on whether market conditions affected the focus on sustainability Access the free-to-read article here: https://lnkd.in/e9DswyVw Sponsored by BNP Paribas #GlobalCapitalAwards #bank #banking #ESG #sustainability

Smaller and lower tier bank issuers in Europe are capitalising on favourable funding conditions, extending their funding to the subordinated debt layer. The European FIG bond market has seen success for infrequent borrowers, both from the eurozone periphery and outside, tapping into the single currency for unsecured #bonds. "In tier two and additional tier one (AT1) everyone is willing to buy," says a FIG syndicate desk head, emphasising the attractiveness of the higher yielding asset classes. This trend is reflected in recent successful deals, like Italy’s FinecoBank’s AT1 issuance and Portugal’s Banco Montepio's tier two offering, demonstrating the market's receptiveness to less frequent issuers' capital offerings. Sign up to read the rest of the story and comments from bankers on and off the deals: https://lnkd.in/ehG5TFzn Written by Atanas Dinov, bank finance editor, and Sarah Ainsworth, deputy FIG editor at GlobalCapital #capitalmarkets #FIG #financialinstitutions #financialinstitutiongroup

The performance and asset quality of securitisation transactions are expected to remain sound across the Asia Pacific, according to MUFG executives at the recent ABS Asia 2024 conference in Hong Kong, an annual gathering for global structured finance professionals. Notwithstanding market events from the Global Financial Crisis to the COVID-19 pandemic, securitisation markets in APAC have remained resilient, with overall transactions continuing to demonstrate fairly stable asset performance. The conference hosted more than 450 investors, issuers, and industry professionals. In the opening panel discussion, Taemoon Chung, MUFG’s Head of Securitisation & Fund Finance, APAC, shared his outlook on regional market performance trends and challenges as well as the growing interest of using securitisation as a funding tool in emerging economies across the region. This was followed by further insights from Tony Chen, MUFG China’s Head of China Debt Capital Markets, elaborating on the Mainland Chinese market, while John Stormon, MUFG’s Head of Securitisation, Australia & New Zealand and Deputy Head of Fund Finance, APAC, moderated a discussion on securitisation’s role in infrastructure development. Representatives from financing platforms Clifford Capital Holdings and The Hong Kong Mortgage Corporation Limited also spoke on their recent project finance/infrastructure loan backed securities (ILBS) transactions. #MUFGAPAC Invisso #ABSAsia

🌍 BBVA has received approval from the UK regulator to take indirect control of a Banco Sabadell subsidiary. This move marks a significant step in BBVA's international expansion strategy, strengthening its position in key markets. The acquisition aligns with BBVA’s focus on enhancing its global footprint and delivering more comprehensive financial services. #BBVA #BancoSabadell #FinancialServices #GlobalExpansion #RegulatoryApproval

After a couple of months in which we have seen an upturn in Capital Markets activity, we have culminated this pre-summer cycle with our participation at the highest level as MLA in this important facility for CriteriaCaixa in support of its new growth strategy and its recently updated Strategic Plan. We are very proud to be able to help CriteriaCaixa finance the investments it has made during the first half of 2024, in particular the acquisitions of new stakes in Telefónica, ACS, and Colonial, but not only, as this facility provides with more liquidity that also gives them flexibility to take advantage of new growth opportunities that may arise within their 2025-2030 horizon. Thanks to Societe Generale Corporate and Investment Banking - SGCIB for its role as coordinator and bookrunner. And of course many thanks to CriteriaCaixa for their confidence in Intesa Sanpaolo , where we have proven once again to be a trusted partner with global capabilities. https://lnkd.in/dhuHTXyt