NatWest Plans SRT Linked to £3.5 Billion of Real Estate Loans

NatWest Group Plc plans a significant risk transfer linked to £3.5 billion ($4.6 billion) of commercial real estate loans, following a similar deal from its UK rival Lloyds Banking Group Plc.

The size of the SRT is about 7% of the reference portfolio, according to people familiar with the matter, who asked not to be identified because the matter is private.

Deal terms, including size, may change following discussions with investors, the people said. A representative for NatWest declined to comment.

SRTs allow banks to insure loans against default. They’re frequently issued in the form of credit-linked notes to ...