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A flurry of covered bond issuances under the new Pfandbriefe Act: almost €32 bn in issuances in the first 18 months

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The Austrian covered bonds market has developed in a very dynamic way. Since the new Pfandbriefe Act (PfandBG; Pfandbriefgesetz))[1] entered into force on 08 July 2022 there have been a total of 153 issuances with a total volume of € 28.88 bn. ; of that amount € 6.95 bn. were issued in the 2nd half of 2022, and € 21.93 bn. during 2023. And in January 2024, there were a further eight issuances with a total volume of € 3.08 bn . To date 26 credit institutions have applied to the Austrian Financial Market Authority (FMA) for approval of a programme for issuing covered bonds under the rules of the new Pfandbriefe Act. A total of 41 programmes have been approved, with 25 for the issuance of Pfandbriefe collateralised by a cover pool with primary assets from mortgage claims, 16 for the issuance of public Pfandbriefe.  Consequently almost all the Banks that hold a licence pursuant to Article 1 no. 9 BWG (securities underwriting business) and that actively issued Pfandbriefe in the past, have been granted a programme approval.

“There has been a pleasingly lively and dynamic flurry of activity under the new Pfandbriefe Act, both for mortgage-based and public covered bonds,“ remarked the FMA’s Executive Directors, Helmut Ettl and Eduard Müller: “We are very confident that this momentum will continue for the duration of 2024.”

Journalists may address further enquiries to:

Klaus Grubelnik (FMA Media Spokesperson)

+43 (0)676 88 249 516

+43 (0)1 249 59 – 6006

[email protected]

[1]The new Pfandbriefe Act (PfandBG; Pfandbriefgesetz) transposes the EU Covered Bonds Directive: “Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019 on the issue of covered bonds and covered bond public supervision and amending Directives 2009/65/EC and 2014/59/EU”.

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