Blackstone (BX, Financial) has acquired a $1 billion stake in an infrastructure loan portfolio from Santander Bank (SAN). The portfolio includes loans for digital infrastructure like data centers, as well as assets in renewable energy and transportation sectors. Robert Horn, Blackstone's Global Head of Infrastructure and Asset Credit, stated that this acquisition aligns with their strategy to collaborate with leading financial institutions to provide large-scale, long-term, and efficient capital solutions.
Santander Bank is actively working to improve its capital returns. The Spanish bank is also marketing a significant risk transfer associated with over €20 billion ($21 billion) of loans across its global operations, including the US, Germany, the UK, and Mexico. According to the bank's CFO, Jose Garcia Cantera, Santander has offloaded nearly €40 billion of risk-weighted assets in the first nine months of the year, compared to about €30 billion for the entire year of 2023.
Marcel Patiño, Global Head of Private Debt Mobilization at Santander, mentioned that the bank aims to streamline its balance sheet while advancing its position as a leading advisor and arranger in structured finance. Although banks still dominate much of the infrastructure credit industry, regulatory requirements have increased the cost of holding such assets on their balance sheets. This situation provides an opportunity for private capital firms like Blackstone, which are not subject to the same regulations, to hold bank-issued loans.
Other banks are also selling infrastructure loan portfolios. Reports indicate that ABN AMRO is selling approximately €3 billion worth of such loans.
