structured asset finance business focusing on tax-based deals, it
revealed last month that it has signed a £40 million (€50.7
million) financing of construction equipment with a Middle Eastern
client.
The bank’s new business plan is to
focus on structured deals that make use of tax advantages across
jurisdictions and it involves the head of the proposed new
business, Steve Hackett, currently head of RBS Asset Finance
Europe, being relocated to the United States from London.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
This follows RBS’ recent decision to
almost entirely close to new business its RBS Structured Asset
Finance Europe and to also move away from signing deals where RBS
takes residual-value risk.
The recent deal, which closed at the
end of October, involved the leasing of standing cranes on a
five-year finance lease. The assets are to be used in Qatar and
Saudi Arabia. As a short-funding lease, it takes advantage of
capital allowances of 20 percent introduced in the UK’s Finance Act
of 2006.
These tax advantages enabled RBS to
offer the client, whose identity was undisclosed, floating interest
rates of just 50 basis points above Euribor. There was no up-front
payment, but there will be a large balloon payment at the end.
Treasury is sourced exclusively from RBS in the UK.
The deal had an extra layer of
complexity because under Qatar and Saudi law the assets could only
be imported by local registered companies.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAs RBS’s client was registered
elsewhere, it had to use a local affiliate as the importation
agent. The lessee acted as the sales agent.
Denton Wilde Sapte, longstanding
advisers to RBS and its structured asset finance businesses,
advised RBS.
Following the discontinuation of
Structured Asset Finance, staff of this business have “where
possible been redeployed within the bank”, said Hackett.
He added that “as a result of the
reorganisation” RBS’ structured ship finance group, headed by Andy
Giorgiou, has been strengthened and now has an increased focus on
oil and gas, The aviation capital group, headed by Peter Barrett,
has absorbed the former corporate jet financing activities of
Structured Asset Finance.
A further group has migrated across to
the Financial Structuring Group headed by Tim Pettit and will have
specific responsibility for structured lease and asset finance
opportunities.
The group’s key managers, Steve
Hackett, Philip Tubb and David Webborn have “aspirations of further
geographic growth where required”.
Hackett added: “The team will have a
global remit and will work within the existing Financial
Structuring Group global footprint.”
Brendan Malkin
