DCM SRT SGR

active

The Project consists of a Synthetic Risk Transfer (SRT) transaction in which IFC will provide to BRD Groupe Société Générale S.A. (BRD, the Bank) an unfunded guarantee on credit losses of up to EUR105 million (approximately US$114 million equivalent) on an up to EUR700 million (approximately US$761 million equivalent) reference portfolio comprising small and medium enterprises (SME) and corporate finance loans of BRD. BRD will deploy capital freed up as a result of the IFC loss protection to undertake no less than EUR315 million of new climate and women-owned SME loans in Romania. The Project will allow BRD, one of the country’s systemic banks, to optimize its capital management while supporting the growth of corporate origination. The Project introduces a highly innovative SRT structure, which will be one of the first SRTs and first with IFC in Romania’s banking sector.