Pfandbriefe (Covered Bonds)
The issuance of Hypothekenpfandbriefe and Öffentliche Pfandbriefe (Mortgage Bonds and Public Sector Covered Bonds) by UniCredit Bank Austria AG is governed by the provisions of the Austrian Mortgage Banking Act (Hypothekenbankgesetz – HypBG).
The Mortgage Banking Act provides Public Sector Covered Bond holders and Mortgage Bond holders with a close-mesh safety net; Mortgage Bonds and Public Sector Covered Bonds therefore are declared gilt-edged according to Austrian Civil Law.
All regulations regarding the cover pool register, cover pool trustee and reporting of the cover pool are applicable to both Mortgage Bonds and Public Sector Covered Bonds:
- Each cover pool secures its respective issues equally, therefore matching of particular issues and parts of cover pools is not allowed.
- The issuer has to maintain at all times an over-collateralization of at least 2 % of the nominal amount of the covered bonds issued. This over-collateralization should be held in listed public bonds or cash.
- The interest income of assets in the cover pools must exceed interest paid to the bond investors.
- A trustee is nominated by the Austrian Ministry of Finance with the duty to monitor that the issuer maintains the cover pool according to the legal requirements.
- In case of insolvency of the issuer, the cover assets will be separated from the rest of the assets and the holders of Public Sector Covered Bonds or Mortgage Bonds have a preferential claim on the cover assets. A special cover pool administrator will then be appointed to manage the cover pools.
UniCredit Bank Austria not only adheres to the legal framework, but has additionally implemented an internal risk control system which includes regular audits by its auditors.
Assets eligible for the cover pool of Public Sector Covered Bonds consist in particular of loans granted to or guaranteed by Austrian corporations under public law (e.g. government, regional governments or local authorities) or claims against central governments, regional governments or the local authorities of other Member States of the European Economic Area and Switzerland (which have a risk-weighting of max. 20%). Bonds issued or guaranteed by one of the bodies mentioned before are eligible assets, too.
UniCredit Bank Austria's public sector cover pool holds a Aaa-rating by Moody’s.
The cover pool of Mortgage Bonds may consist of mortgages situated in Austria as well as in Member States of the European Economic Area and in Switzerland (thus in countries where the legal and economic position of the bond investors is similar to Austria – in particular with respect to the insolvency legislation.) The mortgaging must not exceed 60% of the mortgage lending value of the property.
Here you can find the details of UniCredit Bank Austria’s cover pools of its Mortgage Bonds ("Hypothekenpfandbriefe") and its Public Sector Covered Bonds ("Öffentliche Pfandbriefe")
 Mortgage Bonds
Public Sector Covered Bonds
Link to the Austrian Covered Bond Forum ("Österreichisches Pfandbrief-Forum"):
 www.pfandbriefforum.at
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