EBRD Concludes €1 Billion Risk Transfer Deal to Scale Private Investment
EBRD's Strategic Risk Transfer to Boost Private-Sector Investment
By Simon Jessop
Overview of the SRT Deal
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.
Key Details of the €1 Billion Deal
- 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.
Institutional Investor Participation
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."
EBRD's Recent Financing Achievements
- In 2025 the EBRD said it delivered 16.6 billion euros of financing and mobilised a further 26.8 billion euros.
Exchange Rate Information
($1 = 0.8500 euros)
(Reporting by Simon Jessop; Editing by Chizu Nomiyama )
