Firms: Herbert Smith Freehills (Pepper Group Limited); Allens (Banco Popular)
Deal: Pepper Group Limited made an international consumer finance alliance with Banco Popular Español S.A.
Area: Joint venture
Key players: The Herbert Smith Freehills team was led by partner Philippa Stone (pictured), assisted by executive counsel Hemang Shah and solicitor Ben Robinson.
Deal significance: Pepper Group Limited (Pepper) made an international consumer finance alliance with Banco Popular Español S.A (Banco Popular), the fourth-largest banking group in Spain.
The alliance arrangement involves the establishment of a 50/50 joint venture between Pepper and Banco Popular in the Spanish unsecured consumer finance market.
It also includes an agreement to pursue new business opportunities internationally, with the aim of building a global unsecured consumer finance business, focusing on opportunities in Europe, Asia and the Americas.
The joint venture will be the fifth-largest provider in the Spanish point of sale finance market.
Banco Popular has also agreed to acquire an initial 5 per cent interest in Pepper and has entered into a committed five-year equity funding facility under which Banco Popular has agreed to subscribe for additional equity in Pepper of up to $100 million (subject to certain caps, restrictions and conditions precedent) to support future growth.
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