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Middle East portfolio transaction

SC Lowy was engaged by a major European financial institution looking to exit its positions in the Middle East, which had become a non-core region in the bank’s growth strategy.

Objective

SC Lowy was asked by the client to price and execute a USD 300 million portfolio of Project Finance loans across eight borrowers and 14 facilities. Borrowers were based in the Middle East (Oman, Qatar and Saudi Arabia), and all loans were performing and consisted of facilities with a wide range of margins and maturities (2017-2022).

Transaction Process

Our long-term, trusted, top-tier relationships allowed us to quickly identify the best counterparties to work with. High-quality credit/pricing analysis and knowledge of the region and sectors enabled us to market the assets effectively, generate strong demand and provide the seller with the best execution. We were also able to provide clients on the buy side with access to quality assets.

We successfully cleared the portfolio at an average price of mid-to-high 90s (as c/$), meeting the selling bank’s target and placing the entire portfolio with Middle East-based institutions.

Outcome

Counterparties on both sides were very pleased with the result and with our high level of professionalism, in particular: the consistent dialogue throughout, our value-add to their processes (such as market and pricing analysis), and efficiency of execution and closing.

The fact that we closed the transaction whilst in competition with the major bulge-bracket investment banks illustrates our abilities in the performing/near-par debt space and for large-sized portfolio transactions.