Komerční banka Receives an International Award for Covered Bonds
Komerční banka has received a prestigious international award in the Pioneer category of The Covered Bond Report Awards for Excellence 2021 for its January issue of EUR denominated mortgage-backed securities. According to this specialised online publication, the issue was one of the best in class and contributed to the development of the market by its difference from standard deals.
„We really appreciate this award from The Covered Bond Report publisher. I think that it is well deserved. We have marketed a unique deal that combines several innovations in the international covered bond market while providing the highest level of investor protection, and transparency. Thus, we have beaten the path for other issuers in non-euro area countries.”
The contract itself is drawn up under English law, while cover is governed by Czech law. The bonds also provide currency hedging against the risk inherent in the cover pool, which is composed exclusively of mortgages in the Czech currency. Highly innovative reporting, including automatic daily updates of the cover pool, supplements the issue, and KB has become the first bank in the Czech Republic to receive the Covered Bond Label for the security and transparency of the issue. Fitch Ratings’ AAA rating proves the high level of investor protection and of the cover pool quality.
The aim of The Covered Bond Report awards is to recognise those deals, institutions and initiatives that have been best in class, offered something different, or contributed to the development of the market, or stood out as examples of excellence in covered bonds. The period covered by the awards is 1 June 2020 to 31 May 2021. For that year, 11 winners were selected.