A significant financial transaction valued at €2.1 billion ($2.5 billion) has been finalized by the Bulgarian division of Italian banking giant UniCredit in collaboration with PGGM, the Dutch asset manager for the healthcare sector pension fund PFZW. This development was confirmed by sources close to the matter, who revealed that the transaction was structured to reduce risk exposure tied to corporate and small business loans.
The deal, known within financial circles as “Project ARTS Silver-2,” has been classified as the largest of its nature ever executed in Bulgaria. It has also been described as one of the most substantial transactions of its kind within the Central and Eastern European (CEE) region. The scale and strategic relevance of the agreement were emphasized in internal communications by UniCredit, which pointed to the transaction’s capacity to enhance capital efficiency and risk distribution.
These deals are particularly beneficial for improving the capital adequacy ratio, as they allow financial institutions to shift risk from their balance sheets without needing to sell the actual assets.
In contrast to traditional securitisation where assets are directly sold or transferred, synthetic securitisation — the mechanism employed in Project ARTS Silver-2 — allows banks to retain the ownership of loan assets while transferring associated risks to third parties. The method achieves its objective by means of issuing tranches in a structured format, with risk stratified across layers.
Through this model, PGGM assumed exposure to mid-level credit risk associated with the loan portfolio, while UniCredit maintained both the riskiest and most secure layers. It was explained by insiders that the retained first loss tranche ensures that UniCredit maintains a level of “skin in the game,” aligning its interests with the performance of the underlying assets.
Securitised portfolios like the one used in this arrangement typically include a wide array of corporate and small business loans. Issuance of notes backed by these loans is done in tranches, each with varying levels of risk and return. The tranche acquired by PGGM provides moderate yield but assumes the middle tier of credit risk, serving both risk diversification and investment return objectives for institutional investors like pension funds.
It was reported that the completion of Project ARTS Silver-2 follows a similar transaction known as Project ARTS Morava, concluded in 2024, also involving PGGM. These projects form part of UniCredit’s broader strategy to leverage synthetic securitisation in improving capital allocation, particularly across its operations in both Western and Eastern Europe.
Observers noted that while UniCredit has historically concentrated its securitisation efforts in larger Western European markets such as Italy and Germany, its push into the CEE region demonstrates a deliberate diversification and scaling of its capital markets activity.
The importance of this move was not just attributed to balance sheet optimization, but also to the symbolic confidence it signaled to the financial community regarding the maturity and depth of Bulgaria’s financial system. By engaging in a deal of this magnitude, the Bulgarian banking sector was shown to be fully integrated into global capital markets, capable of executing complex financial instruments with sophisticated institutional partners.
PGGM’s participation in this structure was also seen to underscore growing international interest in emerging European credit markets. As the asset manager for one of the Netherlands’ largest pension funds, PGGM has consistently pursued diversified investment strategies, and this transaction was said to align with its mandate to seek stable, long-term returns within a controlled risk framework.
Although neither UniCredit nor PGGM disclosed specific financial terms or forecasted impact metrics beyond regulatory capital relief, market participants have interpreted the deal as a landmark for synthetic securitisation in the region — one that is likely to serve as a model for future transactions by other banks seeking to enhance capital efficiency without shrinking their loan books.
