BAKU. Azerbaijan, April 8. The European Bank for Reconstruction and Development (EBRD) has taken a significant step in advancing financial innovation in Romania by signing a synthetic securitisation deal with UniCredit Bank S.A. (UniCredit Bank), Trend reports.
This deal marks the EBRD's first capital relief transaction in Romania and UniCredit Bank’s first synthetic securitisation issuance, highlighting the growing importance of such financial instruments in Central and Eastern Europe.
“Under the agreement, the EBRD will provide credit protection of up to 77.5 million euro on the mezzanine tranche of the synthetic securitisation through an unfunded guarantee. The securitised portfolio consists of small and medium-sized enterprise (SME) and corporate loans originated by UniCredit Bank, offering the bank a more resilient capital structure and expanding its lending capacity," the information from EBRD notes.
According to EBRD, this innovative deal enables UniCredit Bank
to achieve risk-weighted asset relief, which will be redeployed
into new lending for SMEs and corporations in Romania.
Meanwhile, UniCredit Bank has committed to allocating 120 percent
of the capital relief achieved to projects that support climate
action and environmental sustainability.
“The structure of the transaction meets the requirements for
significant risk transfer (SRT) under the European Union’s Capital
Requirements Regulation. It is designed to enhance transparency and
standardise the eligibility criteria, ensuring higher standards in
synthetic securitisation transactions. Through this partnership,
the EBRD aims to broaden the use of the SRT structure in Romania,
positioning synthetic securitisation as a key tool for managing
risk, optimising capital allocation, and strengthening financial
resilience," EBRD added.
UniCredit Bank S.A., a systemically important financial institution in Romania, plays a leading role in various areas, including project, structured, and syndicated finance, as well as leasing and consumer financing. The bank is part of UniCredit Group, a major European commercial banking group with operations in Italy, Germany, and Central and Eastern Europe.
To date, the EBRD is a leading institutional investor in Romania, having invested more than 11.7 billion euros in 562 projects, further strengthening its role as a key player in the country's economic development.