PGGM and mBank have entered into a credit risk sharing transaction referencing a €1.1bn portfolio of commercial real estate loans in Poland.
PGGM will be investing in 80% of the outstanding tranche as an anchor investment.
This is the first significant risk transfer transaction from the CEE region referencing exclusively credit real estate lending. It is also the fourth transaction in four years between mBank and PGGM.
For PGGM and its end investor Dutch pension fund PFZW, the transaction offers an opportunity to gain exposure to CRE lending in Central and Eastern Europe.
In assessing the transaction, PGGM also considered mBank’s SBTi-validated decarbonisation targets, including targets covering the bank’s commercial real estate portfolio, which are relevant to PFZW’s 3D investment approach.
PPGM said the transaction is consistent with its approach of considering climate transition factors alongside financial considerations when evaluating investment opportunities.
Luca Paonessa, lead portfolio manager of credit risk sharing at PGGM: “Fuji is the fourth transaction we have executed with mBank, across three distinct business areas. We are particularly happy that mBank sets an ambitious target to decarbonise its CRE loan portfolio.”
Karol Prażmo, managing director of treasury & investor relations at mBank, added: “The transaction further strengthens mBank’s capital position, and enhances our capacity to support new lending opportunities.
“It also marks the fourth transaction completed between mBank and PGGM over the last four years, highlighting the strength of our long-standing partnership and the trust we have built together.”
