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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 approval.
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
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 America.
"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."