EBRD agrees inaugural significant risk transfer deal for 1 billion euros

LONDON, May 7 (Reuters) - ​The ⁠European Bank for Reconstruction and ​Development has carried out its first significant risk transfer (SRT) deal, ​the ‌EBRD said on Thursday, looking to scale up private-sector ⁠investment in emerging markets and make ⁠greater use of its ​balance sheet.

* The 1 billion euro ($1.18 billion) deal transfers the credit risk on a portfolio of EBRD ​assets ‌but keeps the underlying loans on the bank’s balance sheet.

* The deal includes a 835-million-euro senior tranche, retained by the EBRD; a 145-million-euro ​mezzanine tranche, partly placed with Dutch pension investor PGGM ‌and partly insured by AXA XL, AXIS Capital and Liberty Mutual; and a 20-million-euro ‌junior tranche retained by the EBRD.

* EBRD Chief Financial Officer Burkhard Kübel-Sorger says: “Through this transaction, we ​are creating a new opportunity for institutional investors to engage ‌with EBRD portfolios and support investments in our regions. By sharing risk and mobilising private capital, we can ⁠use ⁠our balance sheet more effectively, accelerating ‌the circulation of capital and channelling more long-term investments to emerging ​economies."

* ​In 2025 the EBRD said it ‌delivered 16.6 billion euros of financing and mobilised a further 26.8 billion euros.