.jpg)
1 hour ago
3
Article content
(Bloomberg) — Societe Generale SA is hedging about $5 billion of project finance deals by taking advantage of sustained investor demand for significant risk transfers.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The Paris-based lender is finalizing an SRT sale tied to a portfolio of lending to sectors including energy, renewable power and data centers, according to people familiar with the matter who asked not to be identified because the discussions are private.
Article content
Article content
BBVA SA and ING Groep NV are among other banks offloading risks on AI-linked lending via SRT deals pooling a wider range of assets. Lenders such as Toronto-Dominion Bank, BNP Paribas SA and Royal Bank of Canada have also weighed SRTs focused on finance tied to AI infrastructure.
Article content
Article content
Banks use SRTs as a way to insure loan losses, typically obtaining protection for between 5% and 15% of the portfolio value, in order to free up capital for new business. Transferring risk to investors increases their ability to originate new loans, make acquisitions or increase shareholder payouts. SRT buyers stand to reap coupon payments that can exceed 10%.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Sales of SRTs in the first half of 2026 surpassed $18 billion, compared to about $15 billion a year earlier, and are on track for a sixth straight annual record, according to estimates by Crescent Capital, which invests in the instruments.
Article content
The surge has continued even as investors grappled with the combined effect of higher energy prices on the back of the Middle East war and concerns ranging from the impact of artificial intelligence on sectors such as software and the debt-fueled expansion of data centers.
Article content
A spokesperson for SocGen declined to comment.
Article content
The bank recently completed one of the largest SRT deals seen over the past year by transfering risk tied to over €9 billion ($10.3 billion) of loans to companies in countries including France and the US. The transaction was priced at a spread of 675 basis points over a borrowing benchmark.
Article content
English (US)