pbb agrees on SRT transaction with Oaktree on $2 billion loan portfolio

Garching, 22 December 2025 – Deutsche Pfandbriefbank AG (pbb), a leading European specialist bank for commercial real estate financing, has signed a significant risk transfer (SRT) transaction with funds managed by Oaktree Capital Management, L.P. (“Oaktree”), a global investment manager headquartered in the US. Oaktree will write protection against a mezzanine tranche of pbb’s performing US portfolio amounting to approximately $320 million. The underlying performing US portfolio has a volume of approximately $2 billion and mainly comprises the office asset class.

Under the SRT transaction, Oaktree subscribes for an interest-bearing credit-linked note issued by pbb. Structured as a purely synthetic and cash collateralized credit-linked note, pbb will be protected against potential losses of the subordinated tranche, while retaining senior exposure for the majority of its performing US portfolio. 

Andreas Wuermeling, Head of Originate & Cooperate at pbb: “We are delighted to have Oaktree, a renowned and experienced partner, at our side. The transaction is a milestone for us in our withdrawal from the US market. It enables us to rapidly implement the economic hedging of 16% of the risk associated with the reference loan portfolio.”

Manish Desai, Managing Director and real estate sector lead in North America for Oaktree’s Global Opportunities strategy, adds: “Oaktree is very pleased to support pbb with this innovative capital solution. This transaction demonstrates our scale, our expertise in the commercial real estate sector, and our capability to design and fund bespoke financings.” 

Alvarez & Marsal Financial Services acted as lead transaction advisor to pbb. Deutsche Bank AG acted as sole arranger and placement agent for the transaction. A&O Shearman acted as legal advisor to pbb. Mayer Brown acted as legal advisor to Oaktree.

About pbb

pbb Deutsche Pfandbriefbank (www.pfandbriefbank.com) is a leading European specialist lender for commercial real estate finance in Europe. pbb is a major issuer of Pfandbriefe, which makes it also an important player in the European covered bond markets. pbb's shares are listed on the Frankfurt Stock Exchange.

About Oaktree

Oaktree is a leader among global investment managers specializing in alternative investments, with $218 billion in assets under management as of September 30, 2025. The firm emphasizes an opportunistic, value-oriented, and risk-controlled approach to investments in credit, equity, and real estate. The firm has more than 1,400 employees and offices in 26 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/