BRD Groupe Société Générale has partnered with IFC to complete Romania's first synthetic risk transfer transaction, unlocking up to 315 million euros for sustainable financing initiatives.

Target Information

BRD Groupe Société Générale, a leading financial institution in Romania, has successfully completed a significant synthetic risk transfer (SRT) transaction in collaboration with the International Finance Corporation (IFC), a member of the World Bank Group. This pioneering deal marks the first SRT transaction for both IFC and BRD in Romania and is set to enhance the bank's capacity to finance sustainable projects.

Under this landmark agreement, IFC will provide a risk guarantee for a BRD portfolio totaling up to 700 million euros, which will encompass loans for small and medium-sized enterprises (SMEs) and large corporations. The capital released through this SRT transaction will enable BRD to provide loans amounting to as much as 315 million euros specifically directed towards climate-related initiatives and small businesses owned by women.

Industry Overview in Romania

Romania's financial services industry has been evolving steadily, with increasing emphasis on sustainable finance and efforts to align with global trends towards climate change and corporate social responsibility. The