25/05/2011 15:28
On May 24, Marfin Popular Bank (“MPB”) successfully set up its new €5bn Cyprus Residential Loans Covered Bonds Programme and also completed its inaugural €1bn Residential Loans Covered Bond Issue under this Programme, following the approval by the Central Bank of Cyprus.
The cover pool consists of Cypriot Residential Loans, while the Covered Bonds are full recourse to MPB and are governed by the Cypriot Covered Bond Legal Framework (Law 130(I)/2010) and the Central Bank of Cyprus Directive (526/2010), enacted in December 2010.
MPB being the only Cyprus institution with significant Covered Bonds structuring experience, has been instrumental in facilitating an extensive consultation process, with all relevant authorities, culminating in a very strong Legal Framework. The new Covered Bond Law is regarded by market participants to be one of the most robust in Europe providing “covered bond investors with strong legal protection” while Moody’s “assesses the strength of the Covered Bond Legislation as TPI positive” (Moody’s, New Issue Report, May 24, 2011).
The new Programme, which is part of the Bank’s medium term funding plan, aims to utilise the Group’s high quality balance sheet, with a view to further enhance its already strong liquidity position, thus underpinning its strategic objectives along the following three key pillars:
? Further consolidate its already leading position in the highly concentrated Cypriot market
? Leverage on its expanding international business banking customer base
? Expand selectively its South Eastern Europe franchise
The cover pool consists of Cypriot Residential Loans, while the Covered Bonds are full recourse to MPB and are governed by the Cypriot Covered Bond Legal Framework (Law 130(I)/2010) and the Central Bank of Cyprus Directive (526/2010), enacted in December 2010.
MPB being the only Cyprus institution with significant Covered Bonds structuring experience, has been instrumental in facilitating an extensive consultation process, with all relevant authorities, culminating in a very strong Legal Framework. The new Covered Bond Law is regarded by market participants to be one of the most robust in Europe providing “covered bond investors with strong legal protection” while Moody’s “assesses the strength of the Covered Bond Legislation as TPI positive” (Moody’s, New Issue Report, May 24, 2011).
The new Programme, which is part of the Bank’s medium term funding plan, aims to utilise the Group’s high quality balance sheet, with a view to further enhance its already strong liquidity position, thus underpinning its strategic objectives along the following three key pillars:
? Further consolidate its already leading position in the highly concentrated Cypriot market
? Leverage on its expanding international business banking customer base
? Expand selectively its South Eastern Europe franchise
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