KBC Completes Significant Risk Transfer on €1.25 Billion Loan Portfolio

KBC Group has announced the successful completion of its second significant risk transfer (SRT) transaction. This major financial move involves a €1.25 billion corporate loan portfolio, enhancing the group's risk-weighted assets and bolstering its capital ratios. KBC achieved this by placing credit linked notes with institutional investors, covering the first loss exposure.

This transaction aligns with KBC's capital deployment strategy, aimed at optimizing risk-weighted assets (RWA) and supporting its financial growth. It is expected to generate an RWA saving of around €0.7 billion. Consequently, it will strengthen KBC's common equity tier 1 (CET1) ratio by approximately 8 basis points in the second quarter of 2026.