Erste Plans SRT Tied to Austrian Commercial Real Estate Loans

Erste Group Bank AG is working on a significant risk transfer tied to commercial real estate loans in Austria as regulators push lenders to bolster their capital buffers against potential defaults in the sector.

The Vienna-based bank is talking to investors about an SRT linked to almost €4 billion ($4.7 billion) of loans, according to people familiar with the matter who asked not to be identified because the discussions are private. The terms of the potential transaction could change as the sale proceeds, the people said.