Apollo Global Management has obtained large funding pledge of $5 billion with BNP Paribas. It added that the terms of this deal represent one of the largest amounts of bilateral financings for directly originated credit assets in the market. The funding will be used to provide investment grade asset-backed credit and this credit will be in the form of assets that were provided by Apollo and Atlas SP Partners. Atlas SP Partners is a securitized products platform which was bought by Apollo from Credit Suisse.
The total funding in the form of Equities by BNP Paribas will be in tune of $5 billion. This amount is however expected to rise over time based on the terms of the agreement as provided below; Besides this, the two have agreed on capital markets partnership for securitizations originated by Apollo and Atlas issuer clients. With this partnership, Apollo has obtained a base in the financial markets and has expanded its range for expansion.
Apollo’s co-president, Jim Zelter, said that he believed in the partnership. “We think that this is quite a significant deal with one of the largest ever bilateral financings for directly originated credit assets and is further evidence of the strength in Atlas’ core business of origination and its approach,” said Zelter. He stressed that the deal also speaks of the firm’s commitment to grow the affairs shared with foremost global financial organizations.
Apollo-BNP Paribas Collaboration
It is pertinent to mention here that this transaction will complement the Apollo’s existing business relations with the BNP Paribs. Zelter commented that both Apollo and Atlas are raising their profile with big global banking institutions on an ongoing basis. “Thus, as Apollo and Atlas go on increasing the relations with the best global financial partners, working together with BNP Paribas, this transaction records it,” he said.
Apollo and its controlled entity Athene in partnership with BNP Paribas started Eliant Inventory Solutions in 2022. This one is transactional in nature offering working capital and other funding requirements for supply chain. It extends the existing business relationship between them and underlines both parties’ unrelenting efforts to bring forth suitable financial concepts answering to the market’s increasing demand for securitized credit.
Apollo and BNP Paribas’ cooperation is considered one of the defining moments in securitization, which should positively affect the performance of both companies.
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