EBRD agrees inaugural significant risk transfer deal for 1 billion euros

Published: 2026-05-07 08:22:36 ET AXS

Published on 05/07/2026 at 08:22 am EDT

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.

o 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.

o 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.

o 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."

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

($1 = 0.8500 euros)

(Reporting by Simon Jessop; Editing by Chizu Nomiyama )

By Simon Jessop