NETHERLANDS - PGGM and ABN AMRO have completed a collateralised loan obligation (CLO) transaction to securitise Brazilian loans within the bank's portfolio worth US$850m (€585m).
Mascha Canio, head of infrastructure, private equity and structured credit, PGGM, said: "With this transaction we have further diversified the continuously growing structured credit portfolio as well as the overall portfolio.
"For PGGM this is an effective way of investing in assets that are difficult to find in the public market."
PGGM said it was important that Banco Real was prepared to share the risk involved in the product and align the two parties' interests.
The pension fund also claimed Banco Real applied high environmental and social standards throughout its business processes, keeping them in line with its responsible investment policy
Raymond van Wersch, senior portfolio manager structured credit, PGGM, added: "This transaction further underlines the innovative role that both ABN AMRO and PGGM play in structuring investments for the pension industry, especially in today's market presenting many interesting opportunities."
At the end of January, ABN AMRO received the go ahead from the Dutch central bank (DNB) to separate out its asset management business and join with Fortis.
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