Apollo World Administration has secured a $5bn (£3.8bn) funding dedication from BNP Paribas, in what it describes as one of many largest-ever bilateral financings for directly-originated credit score belongings.
The French financial institution will finance investment-grade, asset-backed credit score originated by the choice asset supervisor and Atlas SP Companions, the securitised merchandise enterprise that Apollo acquired from Credit score Suisse.
Underneath the phrases of the deal, BNP Paribas will make a day-one dedication of $5bn which is predicted to extend over time.
Learn extra: UBS sells $8bn of Credit score Suisse loans to Apollo
It has additionally agreed to a capital markets collaboration to assist securitisations sourced by Apollo and Atlas issuer purchasers.
“We imagine this strategic collaboration, which incorporates one of many largest-ever bilateral financings for directly-originated credit score belongings, is a testomony to the power of Atlas’ distinctive origination capabilities and differentiated mannequin,” stated Apollo co-president Jim Zelter.
Learn extra: State Avenue and Apollo to launch retail non-public credit score ETF
“Working hand-in-hand with BNP Paribas, this transaction exhibits how Apollo and Atlas proceed to develop relationships with main international monetary establishments and builds on Apollo’s current collaboration with BNP Paribas to offer stock finance options by the Eliant platform.”
In 2022, Apollo, alongside its annuities enterprise subsidiary Athene, and BNP Paribas introduced a strategic relationship with the launch of Eliant Stock Options, a platform offering versatile financing options for working capital and provide chain wants.
Learn extra: Apollo exec forecasts rise in hybrid financial institution/non-public credit score offers
