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ARTICLE · 04 FEBRUARY 2022

New Law On The Issue Of Covered Bonds

ELVINGER HOSS PRUSSEN, société anonyme
Explore more from ELVINGER HOSS PRUSSEN, société anonyme

What's new? Access to the activity of covered bond issuance is now open to any Luxembourg credit institution, within a strict framework set out in the Luxembourg Law of...

LuxembourgFinance and Banking
Elvinger Hoss Prussen
Elvinger Hoss Prussen

What's new? Access to the activity of covered bond issuance is now open to any Luxembourg credit institution, within a strict framework set out in the Luxembourg Law of 8 December 2021 ("Law" - available in French), which transposes Directive (EU) 2019/2162 of 27 November 2019 on the issue of covered bonds and covered bond public supervision ("Directive").

The Law amends the Law of 5 April 1993 on the Financial Sector, as amended ("LFS") and certain other relevant financial sector laws.

The current regime for specialised credit institutions issuing covered bonds will continue in parallel with the new regime set up by the Law. The Directive does not exclude the maintenance of the specific national regimes already put in place.

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