PGGM, acting on behalf of Dutch pension fund PFZW, has entered into a credit risk-sharing transaction with ING covering a €5bn portfolio of project finance loans across EMEA and APAC, most of which directly contribute to the energy transition.
The transaction, dubbed Linden-1, is ING’s first large-scale significant risk transfer (SRT) involving project finance assets and lays the foundation for a broader risk-sharing partnership between the two institutions.
Under the arrangement, ING shares the credit risk associated with the portfolio, which comprises loans originated by its wholesale banking division through its energy, technology, media, telecommunications and infrastructure teams.
The transaction is structured to meet the EU’s Simple, Transparent and Standardised (STS) criteria and provides capital relief to ING, improving its capital efficiency and creating capacity for new client financing. The arrangement also allows ING to add newly originated eligible loans, increasing the size of the referenced portfolio over time.
For PGGM and PFZW, the deal offers an opportunity to generate financial returns for Dutch healthcare workers’ pensions while supporting the energy transition.
Barend van Drooge, head of credit risk sharing at PGGM, said: “This transaction reflects our 3D investment approach, in which we weigh risk, return and sustainability in the PFZW investment portfolio. It offers an attractive investment while supporting the energy transition and freeing up lending capacity at ING.”
Theo Korver, wholesale bank head of capital management at ING, said: “This transaction demonstrates how we can use innovative risk-sharing structures to manage capital more efficiently and create additional lending capacity for our clients.”
PGGM Investment Management managed €271bn across public and private markets globally as of 30 June 2026.
