Sumitomo Mitsui Financial Group's (TYO:8316) unit Sumitomo Mitsui Banking has closed its first synthetic risk transfer (SRT) transaction in Asia Pacific, referencing a $3.2 billion portfolio of Australian and Asian project finance loans.
The deal, executed with partners Blackstone, Stonepeak, and Clifford Capital, allows the financial group to optimize regulatory capital and recycle it to support future regional growth while enhancing returns on equity.
The deal represents the second SRT for Sumitomo Mitsui Banking, following one completed in the Americas in April, according to a statement on Monday.
The partners said the transaction was a key step in providing innovative financing and supporting large-scale infrastructure development across Asia Pacific.
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