First Norwegian green synthetic SRT deal

This landmark Significant Risk Transfer transaction has seen the EIF and the EIB providing synthetic protection in the mezzanine tranche of a NOK17.6 billion (EUR1.5 billion) SME and mid-cap loan portfolio originated by DNB Bank ASA (DNB).

The transaction is also the first in Norway to have been structured to comply with the criteria for Simple, Transparent and Standardized securitizations (STS) under the EU’s Securitization Regulation, which is expected to come into force in Norway in the near future.

The EIF’s and EIB’s investment was backed by the European Commission’s InvestEU program and will allow DNB to unlock capital resources to provide finance up to NOK2.2bn (EUR190 million) to businesses in Norway, Sweden, Denmark and Finland to enable them to switch to greener technologies, including through the leasing of zero emission vehicles as well as other clean-transport technologies in sectors such as construction.

The A&O Shearman team advising the EIF was led by London partner Parya Badie assisted by senior associates Robert Simmons and Giovanni Chiarli and associate Charlotte Boyd, and by Luxembourg partner, Andreas Hommel assisted by counsel Diana Konrad and associate, Manon Bertolotto.

The A&O Shearman team advising the EIB: was led by London partner Guy Antrobus assisted by associate Abigail True, and by Luxembourg partner Frank Mausen assisted by counsel David Van Gaever.