Sumitomo Mitsui Banking Corporation (SMBC) has announced that its Asia Pacific division has completed its first synthetic risk transfer (SRT) transaction, referencing a $3.2 billion portfolio of Australian and Asian project finance loans. The transaction, which closed across September and October 2025, was executed with three strategic sponsor partners: Blackstone, Stonepeak and Clifford Capital. In line with SMBC’s objective to drive higher return on equity and recycle capital for redeployment, the SRT enables the bank to optimise regulatory capital while continuing to support financing needs across the region. The transaction was structured as a tailored solution that aligns SMBC’s capital and relationship objectives with investors’ portfolio and return requirements, further deepening the bank’s relationships with leading global and regional sponsors active in project finance. “This inaugural SRT is a strategic step to further enable our client-centric growth in the region whilst optimising our capital returns,” said Katsufumi Uchida, head, SMBC Asia Pacific division. Dan Leiter, head of international and global head of liquid credit strategies at Blackstone Credit and Insurance (BXCI), said: “We are pleased to support our longstanding partner, SMBC, with this initiative to finance large-scale infrastructure projects across the Asia Pacific region and enhance their capital efficiency. Blackstone is committed to providing innovative and scaled financing solutions that help our global banking partners achieve their capital goals.” Andrew Robertson, partner at Stonepeak, said: “We are proud to partner with SMBC on this important transaction. Through this investment, we have the opportunity to provide our investors with exposure to quality, diversified infrastructure and project finance loans in the Asia Pacific region. APAC infrastructure credit is a key strategic focus area for our firm, and we see partnerships with banks through innovative structures as an attractive avenue for growth.” “This inaugural infrastructure SRT marks an important step in strengthening capital efficiency for banks active in the sector,” said Nicholas Tan, group head, markets and investor services, Clifford Capital, and chief executive officer of Clifford Capital Asset Finance. “Clifford Capital is pleased to partner with SMBC on this transaction, which is closely aligned with our mandate to promote capital recycling and enable continued lending to high-quality infrastructure projects across the region. We look forward to deepening our collaboration with SMBC in supporting sustainable financing for the real economy.” The transaction follows SMBC’s inaugural SRT trade completed by its Americas division in April 2025 and underscores the bank’s commitment to developing capital-efficient solutions across its global franchise. Re-disseminated by The Asian Banker
