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KB Insurance and Natixis enter infrastructure and aviation co-investment agreement
We are delighted to announce that KB Insurance Co., Ltd. and Natixis S.A. have signed a partnership agreement to co-invest in infrastructure and aviation debt originated by Natixis.
Under the terms of the agreement, signed on Monday 11th April, KB Insurance targets to invest USD 400 million over three years into loans originated globally by Natixis. During the investment period, Natixis will introduce loans backed by infrastructure and aviation assets to KB Insurance, in accordance with the investment criteria specified in the agreement.
Natixis will retain a portion of each transaction on the bank’s balance sheet in order to ensure alignment of interest all along the life of the operation. Natixis will also provide servicing and administration of all assets in the portfolio.
This is the fifth such agreement signed by Natixis with institutional investors across Europe and Asia, as part of the bank’s pioneering model to open the infrastructure and aviation debt asset class to non-bank financial institutions on a large scale.
Anne-Christine Champion, Global Head of Infrastructure & Projects at Natixis, commented, “We are delighted to partner with KB Insurance through this agreement, which is a milestone in the development of our infrastructure platform, and reflects Natixis’ expertise in delivering funding solutions to infrastructure sponsors and borrowers, and investment solutions to institutional investors.”
Bruno Le Saint, Head of Structured & Asset Finance, Asia Pacific, at Natixis added, “Institutional investors in Asia Pacific are increasingly seeking the stability and long-term yield offered by alternative asset classes, with a particular appetite for infrastructure and aviation debt. We are committed to leveraging our global structured & asset finance franchise to deliver bespoke investment solutions to meet the requirements of our clients in Asia.”
KB Insurance Co., Ltd. is a leading insurance company headquartered in Seoul, South Korea, primarily engaged in non-life insurance related business. The company offers commercial insurance products, including property, marine, accident, and casualty insurance; long-term insurance products; automobile insurance products; and long-term care, disability, health, and cost insurance products. It also provides loan products, including policy loans, credit loans, mortgage loans and others, as well as brokerage, management, claim, call center management, monitoring and research marketing, and call center system implementation services.
Founded in 1959, the company was formerly known as LIG Insurance Co., Ltd., and changed its name to KB Insurance Co., Ltd. in June 2015 when it became a non-life insurance arm of KB Group, one of the largest banking groups in Korea. As of December 31st 2015, KB Insurance Co., Ltd had assets under management of 20,738 trillion Korean Won, approximately USD 18 billion. It is listed on Korea Stock Exchange and has a solid financial base with a Risk Based Capital ratio of 170.2% under the supervision of Financial Supervisory Service of Korea.
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About Natixis
Natixis is a French multinational financial services firm specialized in asset & wealth management, corporate & investment banking, insurance and payments. A subsidiary of Groupe BPCE, the second-largest banking group in France through its two retail banking networks, Banque Populaire and Caisse d’Epargne, Natixis counts nearly 16,000 employees across 38 countries. Its clients include corporations, financial institutions, sovereign and supranational organizations, as well as the customers of Groupe BPCE’s networks. Listed on the Paris stock exchange, Natixis has a solid financial base with a CET1 capital under Basel 3(1) of €11.1 billion, a Basel 3 CET1 Ratio(1) of 11.5% and quality long-term ratings (Standard & Poor’s: A+ / Moody’s: A1 / Fitch Ratings: A+).
(1) Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in. See note on methodology in the 2Q19 earnings material.
Figures as at 30 June 2019