Raiffeisen Romania signs synthetic contract with Munich Re for EUR 1 bln consumer loan portfolio
Raiffeisen Bank has successfully completed a synthetic securitization transaction covering a portfolio of EUR 1 billion, signed with Munich Re, one of the largest reinsurance companies in the world.
iulian ernst · Journalist
· Updated · 1 min read
Raiffeisen Bank has successfully completed a synthetic securitization transaction covering a portfolio of EUR 1 billion, signed with Munich Re, one of the largest reinsurance companies in the world.
The transaction is structured on a portfolio of unsecured personal loans totaling RON 5.05 billion (EUR 1 billion), Ziarul Financiarreported.
The securitized loan portfolio will remain on Raiffeisen Bank's balance sheet and is divided into three risk tranches: senior, mezzanine, and junior.
Under the transaction, the credit risk of the mezzanine tranche is transferred through a financial guarantee to Munich Re through its specialist insurance subsidiary Great Lakes Insurance SE.
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