1. General valuation principles of renewable energy
assets
On 19 December 2018, the CSSF issued Circular 18/705
("Circular") relating to the general
valuation principles, introduced by the Law of 22 June 2018, to be
applied for the determination of the fair value
("FV") of renewable energy
("RE") assets that are eligible assets
for the cover pool of covered bond banks
("CBB").
In any event, for the CBB to remain ultimately responsible for
the proper valuation of the underlying projects, it must ensure
that comprehensive and appropriate written procedures are drafted
describing the process and the policies to be applied in the
context of the valuation of the assets in the cover pool. The
purpose is to implement the definition and proper valuation
governance.
