Commerzbank Plans to Sell SRT Tied to €2 Billion of Loans

(Bloomberg) – Commerzbank AG plans to sell an important risk transfer depending on the corporate loans portfolio, according to people who know the issue to release the capital to defend a potential transfer proposal from Unicredit SPA.

Commerzbank, based in Frankfurt, aims to publish a SRT, which is connected to € 2 billion ($ 2.4 billion), according to people who want not to be named. He added that the size of the SRT will be about 6.9% or about 140 million €. Commerzbank representative refused to comment.

While Commerzbank has been using SRTs for years, such transactions are now part of a wider plan by the General Manager Bettina Orlopp to keep the lender independent. Moody’s ratings on Thursday increased Commerzbank’s credit rating and expressed strengthened capital letters and advanced profitability.

Unicredit, led by the Executive Board Chairman Andrea Orcel, acquired a share in Commerzbank from the German government in September and then increased its holding. Orcel renewed the push for an agreement, which he said he would form a European banking champion and said he would send a letter to the highest -level German authorities, including chancellor Friedrich Merz last month.

Orlopp is partly trying to unlock more capital using more important risk transfers. Commerzbank’s Corporate Customers Unit expects SRTs to help to help SRTs to reduce € 10 billion in risk -weighted assets until 2028, in a statement on Thursday, the head of the department.

According to a recent Bloomberg Intelligence Research, the global sales of SRTs are expected to grow an average of 11% in the next two years. Aareal Bank AG, Erste Group Bank AG, Standard Chartered PLC and ING Groep NV are currently discussing or concluding such agreements.

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