Société Générale SA transferred $3.4 billion of credit risk linked to its diversified lending portfolio to U.S. asset manager Mariner Investment Group LLC.
The French lender said Oct. 16 that the portfolio consists of more than 250 loans in 40 countries with credits sourced from its structured finance franchise in various sectors, including energy, infrastructure, metals and mining and real estate. Mariner Investment Group purchased a junior tranche of notes through its credit risk transfer strategy, the IIFC platform.
SocGen committed to contribute to positive impact financing over the next three years by reallocating 25% of its risk-weighted assets to new socially responsible projects. Mariner Investment Group agreed to reduce the coupon if the bank is able to redeploy 50% of risk-weighted assets toward positive impact projects by the fourth year of the deal.
"This transaction allows us to increase our capacity to fund socially responsible projects and to enrich our sustainable and positive impact finance offering developed across our wholesale activities," said Pierre Palmieri, head of global banking and advisory at the French lender.