BNP Paribas Asset Management (‘BNPP AM’) announces the close of BNPP AM Euro CLO 2017 B.V., a EUR 361 million securitisation vehicle that invests in a diversified portfolio of syndicated leveraged loans to European corporates. This is BNPP AM’s fourth new generation CLO (Collateralised Loan Obligation), two in Europe and two in the US, confirming its position as a major player in the loans and CLO markets.
BNPP AM CLO 2017 B.V. portfolio consists of a minimum of 95% of secured senior loans, with the balance made up of unsecured loans, second-lien loans, and mezzanine loans. Six classes of notes issued by BNPP AM Euro CLO 2017 are rated by Moody’s and Fitch Ratings and have varying rating levels, enabling investors to invest according to their risk/return objectives.
The deal was structured and syndicated by BNP Paribas Corporate and Institutional Banking. All tranches of the CLO were successfully placed with a range of institutional investors from Europe and Asia. Part of the issue was retained by BNPP AM, including the regulatory vertical risk retention in line with the EU’s Capital Requirements Regulation.
This new CLO is managed by BNPP AM’s Global Loans team, headed by Vanessa Ritter, which comprises 20 dedicated experts in New York and Paris. It specialises in investing in leveraged loan financing, through managed accounts and CLOs. It is also a market leader in middle market corporate financing in Europe, having launched the Novo fund in 2013.
The Global Loans team is part of the Private Debt & Real Assets investment group that was created last June and also includes Small and Medium-sized Enterprises’ lending, structured finance, real estate debt and infrastructure debt, as well as the SME direct lending platform. BNPP AM’s Private Debt & Real Assets investment group consists of around 50 investment professionals.
David Bouchoucha, Head of Private Debt & Real Assets at BNP Paribas Asset Management, comments:
“The successful closing of BNPP AM Euro CLO 2017 confirms BNP Paribas Asset Management’s leading role within leveraged loans and its intention to be a repeat issuer of CLOs. This is in line with our overall strategy to provide clients with a broad range of private debt solutions and to adapt to their needs.”
The investments in the funds are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the fund described being in risk of capital loss. About BNP Paribas Asset Management BNP Paribas Asset Management is the investment management arm of BNP Paribas, one of the world’s major financial institutions. Managing and advising EUR 566 billion of assets as at 30 June 2017, BNP Paribas Asset Management offers a comprehensive range of active, passive and quantitative investment solutions covering a broad spectrum of asset classes and regions. With close to 700 investment professionals and 600 client servicing specialists, BNP Paribas Asset Management serves individual, corporate and institutional investors in 73 countries around the world. Since 2002, BNP Paribas Asset Management has been a major player in sustainable and responsible investing.