The proposed EU Label Covered Bond icons are based on a self-certification of the labelled issuer. The issuer strives, on a best efforts basis, to replace eligible assets that have matured or are redeemed before the maturity of the bond by other eligible assets. Covered Bond Labelled sustainable covered bond programs are based on their issuer’s sustainable bond framework which has been verified by an independent external assessment. A Covered Bond Labelled sustainable covered bond is a covered bond that is fully compliant with the Covered Bond Label Convention, and also includes a formal commitment by the issuer to use an amount equivalent to the proceeds of that same covered bond to (re)finance loans in clearly defined environmental (green), social or a combination of environmental and social (sustainable) criteria. It should be noted that whether or not a bond is a liquid asset for the purposes of the Liquidity Coverage Ratio under Regulation (EU) 575/2013 is ultimately a matter to be determined by a relevant investor institution and its relevant supervisory authority and the issuer does not accept any responsibility in this regard. (4) The issuer believes that, at the time of its issuance and based on transparency data made publicly available by the issuer, this bond would satisfy the eligibility criteria for its classification as a Level 1 or Level 2 asset in accordance with Chapter 2 of the LCR delegated act. Therefore, non-EEA Labels will be identified on the Label website by using a different graphic solution. they will present similar legislative safeguards from a qualitative and supervisory point of view to those in Europe, these bonds will present different characteristics, for example in terms of risk weights. While all the non-EEA labelled programmes’ quality standards will be fully aligned to the Covered Bond Label Convention, to Article 129 of the Capital Requirements Regulation (CRR) and to the definitions in the Liquidity Coverage Requirements (LCR) with the exception of being based in the EEA, i.e. (3) European Economic Area (EEA) or non-EEA. In certain jurisdictions and programmes, CPT covered bonds may feature an initial soft bullet extension ![]() Such sales are subject to predefined criteria intended to protect the interests of all investors under the same programme. Regular attempts are in general made to sell the cover pool assets to redeem the covered bonds. During the extension period, cash-flows received or generated from the cover assets will be distributed to the covered bonds investors. In such circumstances the maturity of a CPT covered bond can be prolonged to the extended maturity date, which is typically linked to the maximum legal maturity of the underlying assets. The extension requires that objective, predefined and transparent criteria are met. By itself, the failure to repay the CPT covered bond on the scheduled maturity date does not lead to an acceleration of this covered bond but to an extension of the maturity date of this and potentially other relevant covered bonds. Failure to repay a covered bond on the extended maturity date triggers the default of the relevant extended covered bonds (unless multiple extensions are allowed).Ĭonditional pass-through (CPT) covered bonds have a scheduled maturity date and an extension mechanism. During the extension period, the covered bond may be redeemed using cover pool proceeds. ![]() If objective, predefined and transparent criteria have been met, the maturity of a soft bullet covered bond can, and in some cases will automatically, be prolonged up to the extended maturity date. Soft bullet covered bonds have a scheduled maturity date and an extended maturity date. Failure to repay the final redemption amount of a hard bullet covered bond on the scheduled maturity date could trigger the default of the relevant covered bonds and, possibly, the liquidation of the cover pool depending on the respective national insolvency rules. Neither the documentation nor the legal framework contain provisions for a maturity extension. Hard bullet covered bonds are repaid on the scheduled maturity date. ![]() Nevertheless, you will be able to check the original currency by directly clicking on the covered bond. (1) Please note that the face value of this bond has been converted into EUR values on the 15th of January of the current year (where the exchange rate protocol takes the ECB bilateral exchange rate on the last business day of the previous year) in order to facilitate the comparison across issuances and to increase the overall transparency of the website.
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