Erste Courts SRT Investors as It Readies €7 Billion Polish M&A

Austria’s Erste Group Bank AG is sounding out investors for a significant risk transfer, according to people familiar with the matter, as it seeks to free up regulatory capital ahead of a planned €7 billion ($8.1 billion) acquisition in Poland.

The Vienna-based lender is looking at an SRT tied to a portfolio of company loans in Austria, said the people, who asked not to be named because the matter is private. Erste may seek to attract cash investors such as credit and pension funds, as well as insurance firms.

The SRT, which will insure the loans against default, will allow ...