BNP Paribas buys majority stake in Dutch firm Dynamic Credit Group

PARIS (Reuters) -BNP Paribas Asset Management has agreed to buy a majority stake in Dynamic Credit Group, a Dutch asset manager and specialist lender with 9 billion euros ($10.6 billion) of assets under management, the companies said on Wednesday.

BNP Paribas said the deal would allow Dynamic Credit access to a larger distribution network. The price of the acquisition was not disclosed.

Dynamic Credit's portfolio mainly consists of Dutch mortgages, which BNP Paribas said had good growth potential.

"Given their attractive risk-return profile and low capital charge under Solvency II, Dutch mortgages are a very attractive investment for institutional investors in the ongoing low interest rate environment. Investments in Dutch mortgages are expected to continue to grow steadily," said BNP Paribas.

The Dutch government's main policy advisory body said in August that economic growth in the Netherlands was set to be stronger than previously expected.

($1 = 0.8474 euros)

(Reporting by Sudip Kar-Gupta; editing by Jason Neely)