Edmond de Rothschild has launched an infrastructure debt strategy in Saudi Arabia and signed an arrangement with Saudi asset manager SNB Capital.
The private banking and investment house also today (13 June) announced plans to establish a presence in Saudi Arabia in partnership with Watar Partners, an independent financial services firm.
Edmond de Rothschild’s infrastructure debt team in Europe has over €5bn in assets under management in this asset class via investments in 18 countries.
Local joint venture partner Watar Partners "brings a multi-disciplinary financial services team with local advisory experience across a diverse Saudi client base", it said.
As a first step, Edmond de Rothschild said it was seeking to establish a new infrastructure debt fund platform designed to play a crucial role in financing infrastructure projects across Saudi Arabia, in line with the country’s Vision 2030 programme, which sets
ambitious goals for local infrastructure development across key areas such as transport, energy, energy transition, digital, social, utilities, and the circular economy.
This investment platform will bring complementary liquidity to existing equity and senior debt instruments and will be structured alongside SNB Capital. SNB Capital offers in-depth knowledge of the region’s financing needs and its ambitious multi-trillion-dollar infrastructure programme.
The joint venture with Watar Partners is expected to go live in the second half of 2024, focusing on offering infrastructure debt solutions and providing infrastructure debt advisory services to Saudi family offices and institutional investors.
A local office is planned to be inaugurated in Riyadh in the second half of 2024, and local resources will be hired.
The launch of the strategy and the creation of the joint venture are contingent on obtaining the required licenses and regulatory
approvals.
Ariane de Rothschild, CEO of Edmond de Rothschild, said: “I am extremely pleased to establish a presence for Edmond
de Rothschild in the Kingdom of Saudi Arabia through this partnership with SNB Capital and Watar Partners. This is a logical
next step for our group, building on the longstanding business relationships we have with the country. Edmond de Rothschild
brings an excellent track record in infrastructure debt in Europe.
I am confident that this expertise will benefit the realisation of the Vision 2030 programme, which aligns perfectly with our mission to foster sustainable growth and development built around strong roots and heritage. We look forward to contributing to the country’s future infrastructure development and growing a long-term presence to serve this important market.”
Rashed Sharif, CEO of SNB Capital, said: “We are delighted to collaborate with Edmond de Rothschild as the investment house
deepens its relationship with Saudi Arabia. As the largest asset manager in the Kingdom and the Middle East, SNB Capital is
poised to unlock growth opportunities in the infrastructure space spanning from transportation to renewable energy, and we
are confident that we will drive sustainable impact and create a local growth engine supporting Vision 2030’s ambitious goals.
"Strategic international relationships that enable us to further play our role in fostering financial innovation and solutions are
core to our strategic objectives and we value partners who share our vision to achieve enduring market development.”
Abdulwahab A. Al Betairi, managing partner at Watar Partners, added: "We are extremely pleased to be partnering up with
one of Europe’s most famous financial franchises. Edmond de Rothschild is a name that comes with a lot of reputation and
heritage, as well as sophisticated investment expertise. I am firmly convinced that Edmond de Rothschild will provide the
expertise and experience we need to meet the plans of the Kingdom of Saudi Arabia’s Vision 2030 goals.”
