The transaction contract is drafted according to English law even as the covered pool is governed by Czech law. The bonds are also hedged against currency risk of the covered pool, which is comprised of mortgages denominated in Czech crowns. The issue has been arranged with highly innovative reporting that includes automatic daily updating of the covered pool. KB became the first Czech bank to receive the Covered Bond Label characterising the issue’s security and transparency. The high level of investor protection and quality of the covered pool is further attested by its AAA rating from Fitch Ratings.
The full results of the annual survey by GlobalCapital are available at the magazine's website.