KBC Completes Significant Risk Transfer on €4.2 Billion Loan Portfolio

KBC Group has announced the completion of a significant risk transfer transaction on a €4.2 billion corporate loan portfolio. This marks KBC's first venture into significant risk transfer, aligning with their strategy to optimize risk-weighted assets (RWA) and strengthen their capital ratio. The bank achieved this through the issuance of credit linked notes to institutional investors, addressing the mezzanine exposure within the portfolio originated by its corporate banking department.

The transaction is expected to result in a saving of approximately €2 billion in RWA, thereby bolstering KBC Group's Common Equity Tier 1 (CET1) ratio by around 23 basis points in the fourth quarter of 2025. This development reflects KBC's commitment to efficient capital deployment and supporting future growth.