The European Bank for Reconstruction and Development has carried out its first significant risk transfer 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 underlying loans remain on the bank’s balance sheet, but the 1 billion euro ($1.18 billion) sale shifts the credit risk on a portfolio of EBRD assets.
A 145 million euro mezzanine tranche, partially deposited with Dutch pension investor PGGM and partially insured by AXA XL, AXIS Capital, and Liberty Mutual; a 20 million euro junior tranche, also kept by the EBRD; and an 835 million euro senior tranche.
Burkhard Kübel-Sorger, the chief financial officer of EBRD, states: “We are creating a new opportunity for institutional investors to engage with EBRD portfolios and support investments in our regions through this transaction.”
We can make better use of our balance sheet by sharing risk and raising private capital, which will speed up capital circulation and direct more long-term investments towards emerging economies.
The EBRD said that it raised an additional 26.8 billion euros and provided 16.6 billion euros in funding in 2025.
