BBVA, Spain’s second largest bank, closed yesterday the sale of a credit portfolio valued at over €2.5 billions, to the Canadian pension fund CPPIB, according to financial sources. This will be CPPIB’s second acquisition of a RED credit portfolio, following the sale by BBVA of another billion euro portfolio in July (Proyecto Sintra).
One year ago BBVA agreed the sale of €13 billion in property assets to Cerberus (Proyecto Marina) and with this divestment (Proyecto Ánfora) BBVA takes the final steps in the process to eliminate risk from toxic property assets which continued to be a part of their balance sheet following the bursting of the Spanish real estate bubble. As at September, before the closing of Projects Ánfora and Marina, BBVA had a net real estate exposure to property assets of €5.5 billion.
CPPIB has outbid two other major investors: Cerberus and Lone Star in an auction which has been coordinated by Alantra with PwC acting as advisor to BBVA.
Canada Pension Plan Investment Board is a state owned pension fund sponsor which entered the Spanish market via the acquisition of Altamira together with Apollo and Abu Dhabi’s sovereign wealth fund ADIA. CPPIB is rumoured to be analysing the acquisition of Altamira which is currently involved in a sale process.
The firm invests in the public equity, fixed income, private equity, real estate and infrastructure projects, and energy and natural resources across the globe. It makes equity real estate investments in office, commercial and industrial sectors, retail, transportation, industrial complexes, urban centers, and multifamily residential properties through direct joint ventures and funds. It invests across United States, Canada, North America, South America, Asia Pacific region, Australia, China and Japan, Continental Europe, Emerging Europe, United Kingdom, London, and India. It also makes private debt investments focusing on making direct primary and secondary investments in leveraged loans, high yield bonds, mezzanine, intellectual property and other solutions across the capital structure. The firm participates in such as acquisitions, refinancing, restructurings and re-capitalizations with targets positions between $50 million to $500 million in any single credit. For private debt investments it considers investments globally. The firm also makes Direct Investments in Asian companies in both co-investment and co-sponsorship situations with general partners and certain other qualified non-GP partners. Canada Pension Plan Investment Board was founded in December 1997 and is based in Toronto, Ontario with additional offices in Central, Hong Kong; London, United Kingdom; New York, New York; Sao Paulo, Brazil; and Toronto, Canada.