Banco Santander has launched it places the mega-credit of 700 million it has granted among investment funds Cobra Group for his latest offensive in Brazil, according to several market sources consulted by La Información. The process is in a very early stage. The governing body Ana Botin He has just had his first contacts with a very small group of investment companies, possible candidates to be part of the curatorship that the bank is planning. Banco Santander has not commented on the questions of this medium.
The bank gave oxygen to the old branch of acute coronary syndrome – now in the hands of the French company Vinci – for the purchase, through its energy division Carmo energyfrom eleven oil concessions a Petrobra, a Brazilian state-controlled oil giant. The amount of the transaction reached 1.1 billion dollars (over 1,090 million euros).
Grupo Cobra is becoming a major player in Brazil by showing off its portfolio. With the aforementioned transaction, the former subsidiary ACS services took control of the so-called Bunch of Carmopoli, which includes a package of the assets of the Sergipe-Alagoas basin. In particular, about 3,000 oil extraction wells, as well as infrastructures for the treatment, storage and transport of oil and natural gas.
Due to its scale, the deal signed at the end of 2021 was the largest oil and natural gas asset transfer operation in Brazilian history. According to the information disclosed to the market in December last year, the transaction was structured in three payments, starting with an initial disbursement of 275 million dollars and other 550 million at the close of the sale. Cobra promised to contribute others 275 million twelve months after the signing of the agreement.
Banco Santander played a key role as a creditor of the industrial services group. Now, the entity wants to reduce its risk. Initially, the bank will focus research on investment funds, rather than prioritizing a banking syndicate. This gives Santander more flexibility when it comes to structuring the deal as, in general, investment firms are able to offerr longer amortization schedules.
The institution has focused its research on investment funds given the greater flexibility they can offer compared to banks
Banco Santander’s proposal is likely not to suit a certain investor profile given the reluctance of many funds to increase their exposure to the hydrocarbon market. due to its difficult adaptation to ESG criteria (environmental, social and good governance). Even potential buyers of the debt will examine the risk of the oil multinational Royal Dutch Shell Plc (Shell)one of the customers (buyers) of the assets that Cobra purchased for its role in the well production chain of the Carmópolis cluster.
Banco Santander’s business in Brazil is experiencing a period of particular turbulence due to the bank’s commitment to renewables. The entity is working for acquire 500 million euros worth of ammunition for the financing of photovoltaic projects in the Latin American country, the largest single market for the company chaired by Ana Botín. With this goal, Santander asked a loan of 200 million euros to the European Investment Bank (EIB)as reported by La Información last July.
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