PGGM enters into EUR 2.3 billion risk sharing transaction in Spain
The private transaction involves a portfolio of EUR 2.3 billion consisting of more than 6,000 loans to Santander’s clients in Spain.
For PGGM’s client PFZW this risk sharing transaction offers access to a portfolio of credit risk that helps to diversify the asset mix of the pension fund in an efficient manner. Through this transaction pension manager PGGM expects to achieve a stable and robust long-term return on behalf of its client. Since 2006 PGGM has gained substantial experience with similar risk sharing transactions which have proven their added value for PFZW’s return, also through the years of the financial crisis.
The amount invested in risk sharing transactions to date exceeds EUR 5 billion relating to loan portfolios of over EUR 80 billion across the world. PGGM has thus become an experienced investor in this segment of the securitisation market.
Mascha Canio, head of Credit & Insurance Linked Investments at PGGM:
,,We really appreciate working together with banks that have established a good track record in SME lending. This collaboration shows how a Dutch pension fund can work together with banks to stimulate small and medium business investments in the European economy. We are very pleased to have closed our first Spanish SME risk sharing transaction with our long-term risk sharing partner Banco Santander. “
,,In light of the European Commission’s legislative proposal on securitisations - in which it proposes preferential regulatory treatment for simple, transparent and standardised (‘STS’) securitisations - this is a transaction that supports the relevance of synthetic securitisations next to true sale securitisations.
Pablo Roig, CFO, Santander Spain: ,,This cooperation with PFZW assists us to manage our exposures in the SME sector and to recycle the freed-up capital in new lending to this strategically important client base in Spain.”
PGGM is a cooperative Dutch pension fund service provider. Institutional clients are offered: asset management, pension fund management, policy advice and management support. On December 31, 2015 PGGM had EUR 182.6 billion in assets under management. The PGGM cooperative has approximately 700,000 members and is helping them to realize a valuable future. Either alone or together with strategic partners, PGGM develops innovative solutions by linking together pension, care, housing and work.
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