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BNP Paribas buys Spanish depositary bank
01 May 2014
BNP Paribas Securities Services acquires Banco Popular’s depositary banking business
BNP Paribas Securities Services
BNP Paribas Securities Services (BNP Paribas) has acquired
Banco Popular’s depositary banking business in
Spain for an undisclosed amount. The transaction is expected
to close in early summer 2014, subject to regulatory
Banco Popular is one of Spain’s largest
depositary banks with €13bn ($18bn) in assets held under
depository, which includes investment funds, pension funds
and Sicavs managed by Allianz Popular and Popular Banca
Privada, as well as EPSVs (Basque pension plans).
Following completion of the acquisition, BNP Paribas
Securities Services will be the depositary bank for
Spain’s fifth largest asset manager Allianz
Popular, which has €13.2bn ($18.3bn), including
mathematical provisions, in assets under management.
The buyout continues the expansion of BNP
Paribas’ depositary bank business in order to
help clients meet requirements under EU Alternative
Investment Fund Managers (AIFM) directive and Ucits, which
mandate managers of AIFs and Ucits to appoint a single
independent depositary bank to carry out various safekeeping
functions for the underlying funds. As such, many custody
banks have expanded or introduced depositary bank businesses
in order to capitalise on this new business opportunity.
The custodian recently extended the business to the
Netherlands and Switzerland and last year acquired
Commerzbank’s German "depotbank" business.
An important consideration in the transaction was the
bank’s ability to meet the operational
requirements of Allianz Popular, according to the statement.
"This transaction with Banco Popular, one of
Spain’s leading universal banks, highlights our
long-standing commitment to the Spanish market and marks an
important milestone in the expansion of our European
depositary business," said Alvaro Camuñas, head of BNP
Paribas Securities Services Spain, Portugal and Latin
"It will reinforce our local expertise and is part of our
strategy to provide market-leading solutions for our [AIFM
directive] and Ucits clients in Europe and around the world."
"We have been working closely with Banco Popular since 2011
when we were appointed as its back office outsourcing
provider. This acquisition is a testament to our strong
relationship with Banco Popular and we look forward to
further cooperation with them."