Standard Chartered and PGGM have successfully executed Shangren VII, the first risk-sharing deal in Singapore to receive capital relief. This landmark transaction involves a $1.5 billion portfolio of trade finance loans to companies across Asia, the Middle East, and Africa, which are key regions for Standard Chartered. The deal, finalised in March 2025, is part of the bank’s long-standing synthetic significant risk transfer securitisation programme, Shangren.
Shangren VII is notable for its dual-credit default swap structure, allowing Standard Chartered to claim capital relief both at the group level and within its Singapore entity. This advancement in the risk-sharing market underscores the collaborative efforts between Standard Chartered and PGGM, which have been partners since 2008. The transaction is their twelfth credit risk-sharing collaboration and the seventh involving Standard Chartered’s trade finance portfolio.
Teo Puay Tin, Head of Distribution, Credit and Portfolio Management at Standard Chartered, highlighted the significance of the transaction, stating, “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.” Barend van Drooge, Deputy Head of Credit Risk Sharing at PGGM, added, “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.”
The successful execution of Shangren VII not only strengthens the partnership between Standard Chartered and PGGM but also sets a precedent for future risk-sharing transactions in Singapore’s banking sector.
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