BNP Paribas and PGGM enter into US$ 2 billion decarbonisation focussed Credit Risk Sharing transaction

BNP Paribas Corporate & Institutional Bank entered into a US$ 2 billion risk sharing transaction with PGGM. Through this transaction BNP Paribas shares the credit risk of a portfolio of project finance loans. The majority of these projects is directly contributing to decarbonisation.

Structured to meet the European Union’s Simple, Transparent, and Standardized (STS) criteria, the transaction delivers material capital relief for BNP Paribas, enhancing the bank’s capital efficiency. The risk sharing portfolio comprises loans to projects financed by BNP Paribas’ Energy, Resource and Infrastructure teams.

Both BNP Paribas and PGGM are committed to accelerate the movement to a more sustainable economy and the transition of the energy production towards more renewable sources.

For PGGM and its end-investor PFZW the transaction reflects their ambition to contribute to the Sustainable Development Goals and to support banks in enabling their clients to transition and become net-zero.

“We are very excited that we have been able to support a business line that is at the forefront of the process to increase BNP Paribas’ capital allocation to renewable energy sources.” said Joost Hoogeveen, Senior Director Credit & Insurance Linked Investments at PGGM. “We particularly appreciate the combination of BNP Paribas’ high quality credit management and its clear strategy to support the transition to a low carbon world.”

Mascha Canio, Head of Credit & Insurance Linked Investments at PGGM, adds: “I am really proud of our team’s innovative approach to structuring this unique transaction, and the professional collaboration with the BNP Paribas team. A clear example of the value of having a long-standing partnership with BNP Paribas.”

“We are very excited about this innovative transaction, which enables us to accelerate capital velocity, expand financing support to our clients' energy transition projects and champion their sustainability efforts on a global scale." said Khoi Anh Berger-Luong, Global Head of Real Assets at BNP Paribas CIB Capital Markets.

Bilal Husain, Global Product Manager, Structured Finance at BNP Paribas, adds: “As we continue to expand our asset footprint in risk sharing transactions, we could not think of a better partner than PGGM for this inaugural transaction – the two institutions have a long-standing relationship built on a deep understanding of each other’s business.

But more importantly, through this transaction, PGGM was able to demonstrate its willingness to partner up with us on where we wanted to go in the future in these sectors”

About BNP Paribas
Leader in banking and financial services in Europe, BNP Paribas operates in 64 countries and has nearly 178,000 employees, including more than 144,000 in Europe. The Group has key positions in its three main fields of activity: Commercial, Personal Banking & Services for the Group’s commercial & personal banking and several specialised businesses including BNP Paribas Personal Finance and Arval; Investment & Protection Services for savings, investment and protection solutions; and Corporate & Institutional Banking, focused on corporate and institutional clients. Based on its strong diversified and integrated model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, BNP Paribas has four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated commercial & personal banking model across several Mediterranean countries, Turkey, and Eastern Europe. As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. BNP Paribas has implemented a Corporate Social Responsibility approach in all its activities, enabling it to contribute to the construction of a sustainable future, while ensuring the Group's performance and stability.

About PGGM Investment Management
PGGM Investment Management is part of the Dutch not-for-profit pension fund service provider PGGM. It fulfils a social mandate: the sustainable investment of the pension capital of around three million participants of PFZW, the pension scheme for the Dutch health and welfare sector. On 31 March 2025, PGGM IM managed EUR 249 billion in public and private markets globally.