NatWest plans ‘risk transfer’ tied to £3.5bn loans

NatWest-RBS Gogarburn HQ in west Edinburgh

Edinburgh-registered NatWest Group Plc — the bank formerly known as RBS — is in discussions with investors to issue a “significant risk transfer” (SRT) tied to commercial real estate loans, according to a Bloomberg News report.

The move could help NatWest’s capital reserves amid its planned acquisition of Evelyn Partners, the report said.

NatWest is discussing an SRT tied to £3.5 billion of loans, according to people familiar with the matter, who asked not to be named because the information is private, Bloomberg said.

The potential transaction would be tied to around 200 commercial real estate loans, the people said.

The SRT terms remain subject to discussions with investors. A representative for NatWest declined to comment.