Societe Generale awarded SCI's Innovation of the Year 2019
The winners of SCI's inaugural Capital Relief Trades Awards were revealed at a ceremony last night. The selections reflects the vibrancy and innovation evident across the risk transfer over the last 12 months and emphasise the utility of synthetic securisation.
Societe Generale awarded SCI's Innovation of the Year Award for introducing a number of ground-breaking structural innovations in connection with the redeployment of released RWA. The deal not only frees up a dedicated capital envelope, whereby capital can be reallocated in favour of positive impact finance assets, but also debuts a pricing reduction feature incentivizing the Bank to participate in new Positive Finance lending.
The credit protection is structured as a funded financial guarantee and covers a low mezzanine tranche, which was privately placed with Mariner Investment Group's International Infrastructure Finance Company Fund II (IIFC II), while Societe Generale retains unhedged the thin first-loss tranche and the senior tranche. The credit protection is ‘mutualised' across the obligors, enabling it to cover a wide scope of assets across Societe Generale's business units.