Deal Announcement

DC Advisory advises Kutxabank on its strategic alliance with Cecabank in the institutional depositary and custody business

04 Feb 2020

Background

  • Kutxabank is one of the most relevant players in the Spanish banking market with total on-balance sheet assets at approximately €60bn
  • Kutxabank is an indisputable leader in its core regions, including some of the most dynamic and wealthy in Spain
  • Kutxabank’s customer base has approximately 2.5 million clients supported by a branch network in 900 locations. Kutxabank’s client profile is recognised by its high quality and loyalty
  • Kutxabank’s asset manager (division) ranks #5 in the Spanish mutual funds sector
  • Kutxabank is also a leader in the EPSV business (Basque pension plans)
  • Cecabank is a Spanish wholesale bank that provides support services to other financial institutions
  • Cecabank’s activity focuses on security services, treasury and banking services

Process

  • The increasing requirements for depositary entities as a result of the new regulations (AIFMD, UCITS V, MiFID II, etc.), combined with the increasing sophistication of capital market instruments, represent a greater operational and reputation risk for depositary entities, as well as a high volume of recurring investment to make the necessary technical and operational developments
  • Consequently, the depositary and custody businesses are becoming a space for specialist players with high volumes of assets under deposit (AuDs), driving this market’s consolidation
  • DC Advisory acted as exclusive financial advisor to Kutxabank and ran a highly competitive auction process
  • DC Advisory remains the sole financial advisor closing depositary transactions in Spain

Outcome

  • Kutxabank will comply with the best market practices for the institutional depositary and custody activity and the transaction will mean an improvement in the economic and service conditions to Kutxabank’s clients

Deal Team