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(Bloomberg) — Deutsche Kreditbank AG, one of Germany’s largest lenders to sustainability projects, is planning its debut transaction in the fast-growing market for significant risk transfers.
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DKB is discussing with investors a potential SRT deal tied to a portfolio of about €2 billion ($2.3 billion) of renewable power financing in Germany, a representative for the Berlin-based bank said. The transaction is being arranged by Deutsche Bank AG, according to people familiar with the matter, who asked not to be identified.
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Banks are selling SRTs at a rapid pace as hedge funds, pension managers, private credit firms and other investors deploy increasing amounts of capital in the market, lured by returns that frequently exceed 10%. Lenders use the deals as a way of insuring loans against default, typically obtaining protection for between 5% and 15% of the value of the portfolio.
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DKB plans to sell junior and mezzanine portions of the underlying financing in what would be its first SRT, the representative said. It had total financed renewable energy assets of about €20 billion at the end of last year, according to its annual report. The bank’s parent, BayernLB, agreed an SRT deal in 2022 with Chorus Capital and M&G Plc on a portfolio of €1 billion of corporate loans.
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As of the end of 2025, banks had used SRTs to offload credit risk tied to more than €905 billion ($1 trillion) in loans, up 26% from a year earlier, according to a survey by the International Association of Credit Portfolio Managers released last week.
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Deutsche Bank is a regular issuer of SRTs. It also advises other lenders seeking to use the instruments as a way of managing their regulatory capital or risk ratios. A representative for Deutsche Bank declined to comment.
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Raiffeisen Bank International, Societe Generale SA and Lloyds Banking Group Plc are among lenders which have recently completed or discussed transactions with SRT investors, Bloomberg has reported.
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