The Helsinki-based Nordic Investment Bank is examining whether to add synthetic risk transfers (SRTs) to its capital management toolkit, Chief Financial Officer Kim Skov Jensen said in an interview.
The bank is working with banking advisers on a preliminary assessment before deciding whether to proceed, with a decision likely in 2027. SRTs could help bolster NIB’s balance sheet and provide greater capacity to lend to sectors including defense.
The potential transactions would complement instruments already used by the bank, including credit risk insurance and the European Union’s InvestEU guarantee program.
Sources: Bloomberg Markets.