Santander Arranges KBC’s Debut Significant Risk Transfer Deal

Banco Santander SA, one of the world’s largest sellers of significant risk transfers, is arranging what would be the first such deal for KBC Group NV, according to people familiar with the matter.

The banks are discussing with investors a SRT tied to a portfolio of about €4.6 billion ($5.4 billion) of corporate loans, according to people familiar with the matter. The potential transaction is at an early stage and terms are subject to discussions with investors, the people said.

KBC is working on issuing SRTs before year-end, subject to European Central Bank approval, a representative for the ...