COVERED BONDS
With the aim of ensuring efficient corporate liquidity management, in December 2010 Credito Emiliano S.p.A. (Credem) completed the structuring of a Covered Bonds programme (hereinafter the "programme"). The programme, which is part of a broader process of effective management of funding sources, is aimed at enabling the company to continue to have adequate instruments for its new structural liquidity needs and to continue to excellently operate in the market. Covered Bonds are bonds, issued by banks, which are mainly characterized by the presence of a dual guarantee:
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the main guarantee, issued by Credem as the issuer of the Covered Bonds;
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the irrevocable, unconditional and independent guarantee with respect to the obligations assumed by the Issuer, represented by a portfolio of prime-quality receivables, which is transferred by Credem to a special purpose vehicle. The transferred assets constitute separate assets from those of the special purpose vehicle itself for the benefit of the holders of the Covered Bonds and other parties in whose favor the guarantee is issued.
In the context of the programme, Credem, through the signing of a specific master assets assignment agreement signed on October 29, 2010, and subsequent assignment proposals, has assigned prime quality receivables, consisting of mortgages loans granted to individuals, to a special purpose vehicle named Credem CB Srl (hereinafter also "Special Purpose Vehicle" or the "Guarantor"), established for this purpose and majority owned by Credem.
1. TRANSFER LIST
The transaction generally consists of three successive stages:
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Transfer of receivables (the mortgage loans indicated above) by Credem in favor of the Guarantor;
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Issuance of Covered Bonds by Credem;
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Credem's use of the Covered Bonds to acquire liquidity in the market at more advantageous prices and subsequently provide new loans to customers on competitive terms.
Under the Covered Bond Programme, different transfer of the receivables has been arranged to finalizing the Issuance of Covered Bonds by Credem.
The list of files containing mortgages and criteria used for the transfer of the receivables is available on the Italian website (1. Elenco Cessioni).
2. PARTIAL REPURCHASE OF ASSETS
Pursuing the objective of ensuring efficient management of corporate liquidity, Credem proceeded in several tranches over time to partially repurchase from the vehicle Credem CB S.r.l. residential mortgages used under the first Covered Bonds program.
The repurchase of the mortgages does not in fact entail any impact for Customers, as the management of the banking relationships remains at the reference branch, leaving unchanged the conditions, characteristics and sending of communications of the mortgage itself.
The list of files containing mortgages and criteria used for the partial repurchase of assets is available on the Italian website (2. Riacquisto Parziale di attivi).
3. REPORT LIST
4. Documentation
5. Balance sheets