SocGen Nears $5 Billion-Linked SRT Including Data Center Debt

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Or sign-in if you have an account.(Bloomberg) — Societe Generale SA is hedging about $5 billion of project finance deals by taking advantage of sustained investor demand for significant risk transfers. 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BBVA SA and ING Groep NV are among other banks offloading risks on AI-linked lending via SRT deals pooling a wider range of assets. Lenders such as Toronto-Dominion Bank, BNP Paribas SA and Royal Bank of Canada have also weighed SRTs focused on finance tied to AI infrastructure. Banks use SRTs as a way to insure loan losses, typically obtaining protection for between 5% and 15% of the portfolio value, in order to free up capital for new business. Transferring risk to investors increases their ability to originate new loans, make acquisitions or increase shareholder payouts. SRT buyers stand to reap coupon payments that can exceed 10%.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againSales of SRTs in the first half of 2026 surpassed $18 billion, compared to about $15 billion a year earlier, and are on track for a sixth straight annual record, according to estimates by Crescent Capital, which invests in the instruments.The surge has continued even as investors grappled with the combined effect of higher energy prices on the back of the Middle East war and concerns ranging from the impact of artificial intelligence on sectors such as software and the debt-fueled expansion of data centers.A spokesperson for SocGen declined to comment.The bank recently completed one of the largest SRT deals seen over the past year by transfering risk tied to over €9 billion ($10.3 billion) of loans to companies in countries including France and the US. The transaction was priced at a spread of 675 basis points over a borrowing benchmark.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.