KBC Group: KBC successfully completes its inaugural significant risk transfer transaction on a 4.2 billion euros corporate loan portfolio

Summary by AI ^BETAClose X

KBC Group has successfully completed its first significant risk transfer transaction, placing credit-linked notes with institutional investors to cover mezzanine exposure on a 4.2 billion euro corporate loan portfolio. This strategic move is expected to reduce risk-weighted assets by approximately 2 billion euros, thereby strengthening KBC Group's unfloored fully loaded CET1 ratio by an estimated 23 basis points as of the fourth quarter of 2025, aligning with its capital deployment policy and growth strategy.

Disclaimer*

In line with the capital deployment policy of KBC and the strategy to optimise RWA in order to strengthen the capital ratio and support further growth, KBC has successfully completed a significant risk transfer transaction on a 4.2 billion euros corporate loan portfolio.

KBC Group is pleased to announce the completion of its inaugural Significant Risk Transfer (SRT) transaction. The risk transfer is achieved via the placement of credit linked notes to institutional investors, covering the mezzanine exposure on a 4.2 billion euros portfolio originated by the corporate banking department of KBC Bank.

This transaction will lead to a risk-weighted assets saving of approximately 2 billion euros and as such strengthen the unfloored fully loaded CET1 ratio of KBC Group by approximately 23 basis points as of the fourth quarter of 2025.

Attachment