The reported transaction is backed by project finance loans, including data center debt, in a structure banks use to shift part of a loan portfolio’s risk to investors.
Societe Generale is reportedly carrying out a roughly $5 billion significant risk transfer deal backed by project finance loans, including data center debt. People cited as sources say the transaction uses a significant risk transfer structure, a bank capital management tool that allows lenders to move part of a portfolio’s credit risk to outside investors while keeping the underlying loans on their balance sheet. The reported deal points to continued use of structured credit techniques tied to infrastructure-style financing and data center exposure.