Best Trade Bank in Southern Europe: Santander

Runner-up: Deutsche Bank
Commended: BNP Paribas
2007 winner: -

When Santander was revealed as the biggest contributor to Russian oil company Rosneft’s latest financing in July 2008, it marked a welcome return to the ‘Russian front’ for one of the biggest banks in Europe.

Absenting itself from such deals as margins were progressively squeezed, Santander’s decision to re-enter such markets now that margins have returned to normal reflects the shrewdness of Grupo Santander’s president, Emilio Botín, who has led the bank since 1986.

It follows a strategic rethink in the wake of the credit crunch last year, says Federico Papa, Head of Trade, Export & Commodity Finance at Grupo Santander, in which it decided upon a renewed assault in trade and export finance. “In trade finance, we have increased our structuring capabilities with new hires and a new approach to the business that has enabled us to better serve our clients,” says Papa.

Santander is also keen to play the role of mandated lead arranger in structured trade finance deals and to become more active in export credit agency-backed deals. For example, the $605.6m Laguna Verde deal in Mexico to finance the refurbishment of nuclear facilities, involving the Spanish export credit agency Cesce.

With the European Union’s economy slowing down – and the Spanish economy especially – Santander’s clients in Southern Europe are increasingly looking towards fast-growing emerging markets, says Papa, who believes that the depressed liquidity and economic outlook in the EU will continue for at least the next 12 months.

Santander, however, largely avoided the toxic investments that caused the credit crunch and is in a good position to benefit as a result. “Santander has gone into the current market downward cycle from a position of relative strength and, because of this, our clients have benefited and will continue to benefit in the near future,” says Papa.

“We have increased our structuring capabilities with new hires and a new approach to the business.”

Federico Papa, Santander