The Edmond de Rothschild Bank aims to act as a hub for infrastructure debt in Saudi Arabia's «Vision 2030.» To achieve this, the bank will establish a local presence and collaborate with a prominent local partner.
The Edmond de Rothschild Bank is further strengthening its involvement in the Middle East. Last year, it opened an office in Dubai, and now it is launching an «Infrastructure Debt Strategy» in Saudi Arabia, according to a press release. For this initiative, the bank is partnering with SNB Capital, Saudi Arabia's largest asset manager, which manages over $66 billion. SNB Capital is part of the Saudi National Bank (SNB), known as a shareholder in Credit Suisse.
Additionally, Edmond de Rothschild plans to open a branch in Riyadh in the second half of the year, in cooperation with Watar Partners, a financial services provider that brings local expertise to the joint venture. This partnership aims to make the infrastructure debt asset class attractive to Saudi family offices and institutional investors.
Leading Player in Europe
According to its own statements, the infrastructure debt team of the Geneva-based bank is one of the leading players in Europe, managing over 5 billion euros across 18 countries.
The first step is to establish a new platform that will play a significant role in financing infrastructure projects under the Kingdom's «Vision 2030,» the press release states. The funds flowing into the country as infrastructure debt through the platform are intended to complement existing equity instruments and senior debt securities, thus contributing to a diversified financing mix.
«Next Logical Step»
For Ariane de Rothschild, CEO of Edmond de Rothschild, establishing a local presence and partnering with the two Saudi entities is «the next logical step for our group, building on the long-standing business relationships we have with the country.»
The bank still needs to obtain licenses and regulatory approvals before it can implement the strategy and formally establish the joint venture.
