Unlocking the Power of Mortgage Covered Bonds: UniCredit Bank's Landmark Issuance

In a significant move, a consortium of leading European banks, including Commerzbank, Danske Bank, DZ BANK, Erste Group Bank, Raiffeisen Bank International, and UniCredit Bank, have collaborated to issue a €500 million mortgage covered bond under the €10 billion mortgage covered bond program of UniCredit Bank Czech Republic and Slovakia, a.s. The bond, carrying a 2.875% coupon and maturing in 2029, has been admitted to trading on the regulated market of the Luxembourg Stock Exchange. This landmark transaction highlights the growing investor confidence in the covered bond market and the strength of UniCredit Bank Czech Republic and Slovakia as an issuer.

Unlocking Opportunities in the Covered Bond Market

Strengthening Investor Confidence

The successful placement of this significant issuance underscores the strong investor confidence in both UniCredit Bank Czech Republic and Slovakia, a.s., as the issuer, and the wider covered bond market. The mortgage covered bonds have been well-received by the investment community, reflecting the market's trust in the issuer's creditworthiness and the inherent stability of the covered bond asset class.

Diversifying Funding Sources

The issuance of these mortgage covered bonds provides UniCredit Bank Czech Republic and Slovakia with an alternative and diversified funding source, allowing the bank to tap into the robust covered bond market. This strategic move enhances the bank's liquidity and financial flexibility, enabling it to better serve its customers and support the local economy.

Leveraging Expertise and Collaboration

The successful execution of this transaction was made possible through the expertise and collaboration of the joint lead managers, including Commerzbank, Danske Bank, DZ BANK, Erste Group Bank, Raiffeisen Bank International, and UniCredit Bank. The collective experience and market knowledge of these financial institutions played a crucial role in structuring and placing the mortgage covered bonds effectively.

Regulatory Compliance and Transparency

The admission of the mortgage covered bonds to trading on the regulated market of the Luxembourg Stock Exchange underscores the adherence to stringent regulatory requirements and the commitment to transparency. This move ensures that the bonds are subject to robust oversight and reporting standards, providing investors with the necessary assurance and confidence in the investment.

Strengthening the Covered Bond Market

The issuance of these mortgage covered bonds contributes to the overall development and strengthening of the covered bond market. As a well-established and resilient asset class, covered bonds play a vital role in providing stable and long-term financing for various sectors, including real estate and infrastructure. The successful placement of this transaction reinforces the market's confidence and further solidifies the position of covered bonds as a preferred investment option.

Leveraging Legal Expertise

The legal advisory provided by White & Case LLP, a global law firm, was instrumental in the successful execution of this transaction. The firm's expertise in the covered bond market and its deep understanding of the regulatory landscape enabled the joint lead managers to navigate the complexities of the issuance process effectively. The seamless collaboration between the legal team and the financial institutions involved was a key factor in the successful outcome.

Expanding Geographical Reach

The issuance of these mortgage covered bonds by UniCredit Bank Czech Republic and Slovakia, a.s. represents a significant step in the bank's geographical expansion and market diversification. By tapping into the European covered bond market, the bank is able to access a broader investor base and strengthen its presence beyond its domestic market, further enhancing its competitive position and growth prospects.