The European Bank for Reconstruction and Development (EBRD) has launched its first significant risk transfer (SRT) transaction worth €1 billion, marking a major step in mobilising private capital and expanding lending capacity in emerging markets. The initiative, structured as a synthetic securitisation and branded “Mosaic,” is designed to transfer credit risk on a diversified portfolio of EBRD private-sector loans while keeping the underlying assets on the Bank’s balance sheet.
The transaction covers risks linked to €1 billion in private-sector loans across several EBRD investment regions and sectors, including sustainable infrastructure, corporates and financial institutions. By sharing risks with institutional investors and insurers, the EBRD aims to attract new sources of private capital into projects and regions that may otherwise have limited access to global investment.
Under the Mosaic structure, the EBRD retains an €835 million senior tranche and a €20 million junior tranche. The €145 million mezzanine tranche has been partly placed with international investor PGGM and partly insured by AXA XL, AXIS Capital and Liberty Mutual. Santander CIB and Clifford Chance advised the EBRD on the structuring and execution of the transaction.
The securitisation is expected to improve the EBRD’s capital efficiency by releasing balance sheet capacity for future high-impact investments and long-term development projects. It also establishes a new asset class opportunity for institutional investors interested in multilateral development bank portfolios and sustainable investment strategies.
EBRD officials highlighted that the transaction aligns with G20 recommendations encouraging multilateral development banks to optimise capital use, mobilise private investment and strengthen development financing through innovative risk-sharing mechanisms. The initiative also leverages data from the Global Emerging Markets (GEMs) database to demonstrate the performance and resilience of MDB-backed assets.
The EBRD described the Mosaic programme as an important milestone for both the Bank and the wider multilateral development banking sector. In 2025 alone, the EBRD delivered €16.6 billion in own-account financing while mobilising an additional €26.8 billion from external partners, reinforcing its role as a major catalyst for private-sector investment in emerging economies.
