VUB Covered Bonds (EBRD-50865)

Countries
  • Slovakia
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 13, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
VSEOBECNA UVEROVA BANKA (VUB)
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 186.99 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 165
Converted using 2019-03-13 exchange rate.
Loan Amount (USD)
$ 186.99 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 934.93 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported EUR 825
Converted using 2019-03-13 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Apr 20, 2019

Disclosed by Bank Apr 12, 2019


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Project Description

According to EBRD website, the project aims to support the Issuer to access medium- to long-term funding by using a covered bond instrument collateralised by a pool of residential mortgage loans. It will (i) help VUB to set the basis for the repetitive issuances of larger size covered bonds in the future, (ii) support further increase in diversification of the funding sources via stable financing instruments, (iii) address asset-liability maturity mismatches, and (iv) contribute to building up a critical mass of outstanding covered bonds in Slovakia by supporting the largest covered bond issuance in the country, and potentially attracting a wider investor base. 

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Private Actors

VUB is the second largest universal bank in Slovakia with 19% market share by total assets and the second largest player in the mortgage loans market, with 22% market share.

Contact Information

Treasury and ALM department
bonds@vub.sk
www.vub.sk

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.