Sumitomo Mitsui Banking Corporation (SMBC) has announced the completion of its first Synthetic Risk Transfer (SRT) transaction in the Asia Pacific region. This significant financial manoeuvre references a US$3.2 billion portfolio of project finance loans across Australia and Asia. The transaction, finalised between September and October 2025, was executed in collaboration with strategic partners Blackstone, Stonepeak, and Clifford Capital.
The SRT is designed to enhance SMBC’s return on equity by optimising regulatory capital, allowing the bank to continue supporting financial needs across the region. This tailored solution aligns SMBC’s capital objectives with investors’ portfolio requirements, strengthening relationships with global and regional sponsors in project finance.
Katsufumi Uchida, Head of SMBC Asia Pacific Division, stated, “This inaugural SRT is a strategic step to further enable our client-centric growth in the region whilst optimising our capital returns.”
The transaction is part of SMBC’s broader strategy to develop capital-efficient solutions globally, following a similar SRT trade by its Americas Division earlier in April 2025. Dan Leiter from Blackstone highlighted the initiative’s role in financing large-scale infrastructure projects, whilst Andrew Robertson from Stonepeak emphasised the opportunity to provide investors with exposure to diversified infrastructure loans.
Nicholas Tan of Clifford Capital noted the transaction’s alignment with their mandate to promote capital recycling, enabling continued lending to high-quality infrastructure projects. This collaboration marks a pivotal step in enhancing capital efficiency for banks involved in the sector.
SMBC, headquartered in Tokyo, is a leading global financial institution with a strong presence in the Asia Pacific region, committed to sustainable economic growth and prosperity.
