ROME: Intesa Sanpaolo SpA has wrapped up two significant risk transfers (SRT) tied to corporate loans worth about US$4.8bil as it takes advantage of robust demand to make greater use of the hedging tool.

Italy’s largest bank recently finalised an SRT linked to US$2.5bil of US corporate loans, according to a person familiar with the matter who asked not to be identified discussing private information. It also hedged a portfolio of €2bil of loans to companies that score highly against environmental, social and governance or ESG and sustainability indicators, the person said.