Covered bonds

Covered bonds at a glance

Covered bonds are debt securities issued by a bank or mortgage institution and collateralised against a pool of assets that, in case of failure of the issuer, can cover claims at any point of time. 

Setting up a Covered bond programme or utilising “tap issuance” helps issuers achieve faster execution, especially relevant given longer lead times for covered bond transactions. Admitting a covered bond programme on International Securities Market (ISM) is a smooth process as it is treated as a standard Eurobond transaction for document review and admission purposes. Covered bonds can easily be admitted to ISM as either a secured debt issue or as an asset-backed security, depending on how the transaction is structured; either way, both structures are accommodated conveniently on the Main Market or the ISM  

With no requirement to appoint a listing agent and no annual fees associated with a London listing, legal and operational costs for setting up the programme on London’s markets are significantly reduced.

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Find out more about our Asset-backed securities.

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