Covered Bonds - DG Hyp

DG HYP COVERED BONDS – PFANDBRIEFE – QUALITY THE PATH OUT OF THE CRISIS SPECIAL MAY 2009
Breakdown of the cover assets for ship pfandbriefe *)
Ship mortgages
(Ships under
construction)
max 20%
Substitute cover
max 20%
Source: DZ BANK; *) in % of the volume of ship pfandbriefe outstanding
Ship mortgages
(Ships)
min 60%
Explicit provisions are also in place for calculating the underlying lendable value of the
collateral assets for ship pfandbriefe, where the same lending limit of 60% applies to the
cover assets as with mortgage pfandbriefe. The lendable value for the ships or ships under
construction must be determined by an independent valuer with the requisite experience.
The long-term features of the asset must be at the forefront when determining this value,
and the loan may not exceed the market value. The ship or the ship under construction
must be insured throughout the entire duration of the loan at least in the amount of 110% of
the respective loan claim outstanding.
Special requirements for aircraft pfandbriefe
Loans secured by mortgages over aircraft qualify as ordinary cover assets for aircraft
pfandbriefe. To be eligible, the aircraft must be recorded in a public register. The registered
mortgage or foreign aircraft mortgage must also cover the engines that account for a large
part of aircraft value. The loan on the aircraft may not extend beyond 20 years of age. The
supervisory authority may allow exceptions in individual cases. Loans secured by aircraft
that are registered abroad can also be included in the cover pool provided certain provisions
that are defined in the PfandBG are met.
Breakdown of the cover assets for aircraft pfandbriefe*)
substitue cover
max 20%
Source: DZ BANK; *) in % of the volume of aircraft pfandbriefe outstanding
aircraft loans
min 80%
Lending values regulated by law
Ordinary cover
22