Saudi SNB Capital launches new oil and gas fund in expansion push

Saudi investment bank SNB Capital has raised more than $230 million for a new oil and gas fund as it aims to diversify its portfolio and support further exploration in the energy industry.

SNBC Capital Oil & Gas Fund I will offer investors exposure to oil and gas fields and developments and indirectly invest in Repsol E&P, a joint venture between Repsol SA and institutional energy investor EIG, SNB Capital said in a statement.

SNB Capital’s pioneering of such a fund comes as the firm pushes for a bigger international footprint. The investment bank, which was the top financial adviser on Saudi IPOs last year behind the local unit of HSBC Holdings Plc., is also gearing up for higher deal volumes in Saudi this year as the kingdom’s sovereign wealth fund looks to raise money for its ambitious projects.

The new fund will offer exposure to E&P assets with a production capacity of about 600,000 barrels a day. Investing in Repsol E&P will also expand SNB Capital’s role in OECD countries and specifically in North America, where about half of the joint venture’s reserves and resources are located.

The fund is being launched by Dubai subsidiary SNB Capital (DIFC) Limited and is Shariah compliant.