More recognition for Bank’s work on developing local capital markets
The EBRD has been awarded GlobalCapital’s The Cover’s Editor’s Choice Covered Bond Award 2017, the biggest industry award in this area.
Bill Thornhill, Editor of The Cover, said: “The decision to give our award to the EBRD was one that was easily made. It reflected the Bank’s instrumental role in advancing covered bond legal frameworks across much of central and eastern Europe as well as the Baltic states. The EBRD has not only devoted considerable time and expertise to a wide range of covered bond projects, but has also put its money where its mouth is with substantial investments in a wide range of covered bonds — not least including those issued by Turkish banks.”
André Küüsvek, EBRD Director Local Currency and Capital Market Development, added: “We are proud, pleased and grateful to receive this prestigious award. Proud, because it is one of the most respected prizes for our industry. Pleased, because the award represents recognition of the highest order. And grateful, because without our fantastic partners in many countries and markets we would not stand today where we are. Our success is not solely our achievement, but is our joint success.”
It is already the second award the EBRD’s work in developing covered bonds markets has won this year. The EBRD invests in covered bonds and supports local actors developing and introducing new instruments. The Bank also engages with central banks, regulators and authorities to promote legal frameworks encouraging issuance and offers technical assistance for specific challenges. The Bank has completed covered bonds reforms in Poland and Romania, and is now working in Croatia, the Slovak Republic, Latvia, Lithuania and Estonia.
Lucyna Stańczak-Wuczyńska, EBRD Director, EU Banks, added: “In terms of transactions, we have invested over €400 million in covered bonds in Poland, Hungary, Turkey and the Slovak Republic. The EBRD supported a number of covered bonds issued by PKO Bank Hipoteczny, Všeobecná úverová Bank Slovakia, invested in a covered bond benchmark issuance by the Turkish lender VakifBank and acquired local currency covered bonds from Hungary’s OTP Mortgage Bank.”
Covered bonds are debt securities issued and collateralised against a pool of assets that, in case of failure of the issuer, can cover claims. While they are well established in advanced markets there is still significant growth potential in many EBRD countries of operations. Developing local currency and local capital markets is one of the Bank’s priorities to strengthen local financial market infrastructures and contribute to economic resilience.
GlobalCapital is a leading publication and internet platform for the international capital market and is published by the Euromoney Institutional Investor Group. The specialist publication The Cover is dedicated to the covered bonds market and namegiver for the award. Other winners this year included Barclays, Crédit Agricole, Landesbank Baden-Württemberg and RBS.