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:
UniCredit Bank Austria does not only adhere 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 entities 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 Triple A rating (Aaa) by Moody's and was granted the ECBC Covered Bond Label.
The cover pool of Mortgage Bonds only consists of mortgages situated in Austria. The mortgaging must not exceed 60% of the mortgage lending value of the property.
UniCredit Bank Austria's mortgage cover pool holds a Triple A rating by Moody's and was granted the ECBC Covered Bond Label.
Here you can find details of UniCredit Bank Austria's cover pools
Link to the Austrian Covered Bond Forum ("Österreichisches Pfandbrief-Forum"):