Investor Presentaiton
Covered Bonds repayment in case of issuer bankruptcy
issuer
bankruptcy
event
Coverage and liquidity tests performs initially 3 months after insolvency and subsequently every 3 months - liquidity test and 6
months
coverage test
-
Coverage test*
passed
Liquidity test*
passed
Coverage test
passed
Liquidity test
failed
Coverage test
failed
or
Maturity of outstanding covered bonds
Covered bonds repaid according to
terms and conditions of the covered
bonds, with 12 M maturity extension
2/3 majority covered bondholders may
adopt a resolution to sell the separate
bankruptcy asset pool to another bank.
Extended to longest dated cover asset maturity plus 3Y, distinct rules
for pro-rata repayment before extended maturity date (fixed to floating)
2/3 majority covered bondholders may adopt a resolution to
disapply maturity extension or
•
.
sell cover assets to another bank or non-bank
*details on the next slides
m
Soft bullet
Pass through
mGroup
Covered
bonds
Cover Pool
Polish
Economy
Real Estate
Legislation
51
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