NatWest has executed a synthetic risk transfer (SRT) securitisation deal worth £1.1 billion, offering credit protection against a portfolio of approximately 40 renewable energy project finance loans. This portfolio spans various renewable technologies, including onshore and offshore wind, solar, smart meters, energy from waste, and biomass power.
The transaction provides risk-weighted asset (RWA) relief for the group, allowing NatWest to redeploy these resources into further lending within the renewable energy sector.
Since 1991, NatWest has been a major player in financing energy projects and remains a leading lender to the UK power and renewables sector. Between 2010 and 2024, NatWest was the top lender to the UK renewables sector by both volume arranged and total number of transactions, according to InfraDeals (as of July 4, 2024).
This transaction is part of NatWest’s broader strategy involving synthetic SRT transactions and is the second of its kind focusing on renewable technologies. The deal was managed by NatWest’s Project Finance and Portfolio Risk Mitigation teams and distributed by NatWest Markets.
Alberto Abascal, Managing Director of Project Finance at NatWest, stated:
“Renewable lending is a core business for the Group. Given our market-leading position and climate objectives, this transaction is crucial for efficiently recycling our capital and continuing to support our clients in this sector.”
David Fitoussi, Managing Director and Head of European Origination at Christofferson Robb & Company, added:
“CRC has been investing in European wind and solar since 2005. We value NatWest as a key player in renewable energy project finance and are excited to offer our investors access to this otherwise inaccessible portfolio.”
Claudio Vescovo, Head of Credit Funds – Energy Transition Europe at Nuveen Infrastructure, remarked:
“We are pleased to add this £1.1 billion portfolio to our existing assets in the energy transition sector. This investment supports our goal of providing investors with opportunities in the energy transition while aiming for sustainable and enhanced returns.
