BNP Paribas Securities Services has partnered with CACEIS to combine issuer services in a joint venture to be owned equally by the two banks.
The transaction is expected to complete at the end of 2022, subject to regulatory approval.
As part of the mandate, the two groups intend to create a provider of services to share issuers, covering operational services such as shareholder recordkeeping, organising and centralising general meetings, setting-up and centralising financial operations, and managing employee shareholding plans.
This partnership would mark an important step in the development of services to corporate clients, say BNP Paribas Securities Services and CACEIS, allowing both banks to pool their investments and offer clientele a renewed and enhanced service offer.
Issuer services will continue to be provided separately by BNP Paribas Securities Services and CACEIS, until the operational start of the joint venture.
Other service offerings of BNP Paribas Securities Services and CACEIS will not be affected.
Patrick Colle, general manager of BNP Paribas Securities Services, says: "We are delighted with this plan to join forces with CACEIS to create a leading service provider dedicated to share issuers. In a complex and constantly changing environment, securities issuers need evolving services. This ambitious project underlines our commitment to our issuer clients."
Jean-François Abadie, CEO of CACEIS, comments: “This agreement illustrates our ability to develop strong industrial partnerships allowing the creation of leaders in our business lines. Our joint venture with BNP Paribas Securities Services will create a major player in issuer services and provide clients with a broad range of products meeting the highest market standards."
