The transaction, dubbed Shangren VII, references a $1.5 billion portfolio of trade finance loans to companies across Asia, the Middle East and Africa, regions that form the core footprint of Standard Chartered. It is part of Standard Chartered’s well-established and highly successful synthetic significant risk transfer (SRT) securitisation programme, Shangren, which has been in place for nearly two decades. Finalised in March 2025, Shangren VII marks a notable advancement in the risk-sharing market, as it is the first transaction of its kind to recognise capital relief benefit in a Singapore banking subsidiary. Moreover, the transaction features a dual-credit default swap (CDS) structure that enables Standard Chartered to claim capital relief both at the group level as well as locally in the Singapore entity. The successful closing of Shangren VII underscores the long-standing collaboration between Standard Chartered and PGGM, which has been active since 2008. The transaction represents the twelfth credit risk-sharing transaction between the two parties, and the seventh that references Standard Chartered’s trade finance portfolio. Standard Chartered and PGGM previously collaborated on the inaugural capital relief transaction which enabled Standard Chartered to be the first bank to benefit from capital relief in Hong Kong in 2022. Teo Puay Tin, head of distribution, credit and portfolio management at Standard Chartered, notes, “Shangren VII testifies the successful extension of the dual-CDS structure and adds risk-sharing securitisation into our Singapore subsidiary’s toolkit for its balance sheet capital and risk management. We would also like to thank our longstanding investor partner PGGM for their strong support in our programmes and their joint efforts to expand these programmes into Asia.” Barend van Drooge, deputy head of credit risk sharing at PGGM, adds, “This transaction with Standard Chartered is especially meaningful as it further expands recognition of credit risk-sharing as a valuable credit risk and capital management tool in Asia.” Redisseminated by The Asian Banker
