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Citi brings in Dutch pension fund for loans hedge

Citi has taken the rare step of calling in the second largest pension fund in the Netherlands, PGGM, to help it hedge risk of €2.5bn ($3.5bn) worth of illiquid loans that are sitting on its balance sheet.

The transaction, called Terra I, is a collateralised loan obligation and references more than 800 corporate credit exposures from 32 emerging markets on Citi's balance sheet.

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