April 2, 2021

Santander Eyes Expansion in Leveraged Finance, ESG-Linked Debt

Banco Santander SA is expanding its leveraged finance business under Rafael Noya, who took over…

Banco Santander SA is expanding its leveraged finance business under Rafael Noya, who took over as head of global debt financing a year ago.

The Spanish bank is broadening its lending to speculative-rated borrowers from its traditional focus on high-grade debt, Noya said in an interview. It’s been building a team to get more high-yield mandates in Europe and the U.S.

“There will be a difference in the size of the deal, but we will have a well-rounded product to play head-to-head in the U.S. market too,” Noya said.

Recent deals include funding the buyout of Spanish telecommunications firm Masmovil Ibercom SA’s by private equity firms KKR & Co., Cinven Ltd. and Providence Equity Partners; financing $3.5 billion of debt for the purchase of portable power generator supplier Aggreko Plc by I Squared Capital Advisors and TDR Capital; along with high-yield bond issues by British Airways’ parent company IAG SA, London’s Gatwick Airport and French retailer Casino Guichard Perrachon SA.