Alecta and PGGM Ink Credit Risk Sharing Deal with J.P. Morgan
Posted on 11/20/2020
Alecta and Dutch investor PGGM entered into a risk sharing transaction with J.P. Morgan on the basis of corporate loans originated by its Corporate & Investment Banking unit. The transaction involves a portfolio of approximately US$ 2.5 billion corporate loans and is a multi-year programme in which the bank risk shares both existing and new loan origination. For Alecta and PGGM the risk sharing transaction offers a unique way to access large corporate credit risk originated by a major U.S. bank.
PGGM has been growing a credit risk sharing portfolio for PFZW (pension fund for Dutch healthcare workers) since late 2006, which stands at EUR 5.3 billion as of September 30th, 2020 holding 24 different transactions. Alecta decided to build a sizeable portfolio of credit risk sharing transactions and since entering into a co-investment agreement with PGGM in May of this year has been an active investor.