Apollo Global Management (APO.US) acquires Santander's (SAN.US) $370M infrastructure loan portfolio
Apollo Global Management (APO.US) has agreed to invest $370mn in Santander's infrastructure loan portfolio, according to reports. Apollo, which is not subject to the same regulatory requirements as banks, has been able to take on bank loans as banks have been forced to hold more capital on their balance sheets due to regulatory requirements. The transfer helps free up capital for banks to lend more. Marcel Patino, global head of private debt mobilisation at Santander, said in a statement: "As we continue to accelerate our business transformation, we remain committed to mobilising private debt to create additional capital for profitable growth." Apollo has established various types of partnerships with banks over the past few years, including deals with Citigroup (C.US) and BNP Paribas (BNPQY.US) to facilitate credit formation. The private capital giant also plans to invest $50bn in clean energy and climate investments by 2027, having invested more than $40bn in energy transition and climate-related investments over the past five years. Last month, Leslie Mapondera, co-head of European credit at Apollo, said he believed "industrial renaissance" was becoming part of the energy transition. The deal with Santander was led by Apterra, an Apollo subsidiary that specialises in financing infrastructure projects.