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.