RBS sells sustainable risk transfer deal to BAE pension fund

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By Owen Sanderson
30 Jan 2020

RBS has sold a risk transfer securitization referencing a book of UK green project finance loans to the BAE Systems pension fund, which was advised by a unit of Macquarie. The deal is the first ESG-rated risk transfer deal in the UK, and also potentially the longest-dated risk transfer deal ever done in the UK, with an average life of eight to nine years.

Project finance risk transfer is relatively rare, but not unheard of — Santander has issued several transactions, including two during the depths of the crisis. Société Générale’s Jupiter transaction last year included infrastructure risk, and African Development Bank’s Room2Run deal also referenced infrastructure.

But these deals remain more ...

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