Covered Bonds Programme

The Gruppo Banco Desio has commenced with a Covered Bond Issuing Programme (hereinafter referred to as “the Programme”) aimed at making the Group’s management of funding sources even more efficient.

Covered Bonds are bank-issued bonds whose main distinctinguishing feature is that they are covered by a dual guarantee, namely:

a) a first guarantee constituted by the issuing bank’s repayment commitment and

b) a second, specific guarantee in the form of a portfolio of prime loans transferred by the issuing bank (and by any assignor banks) to a special purpose vehicle (SPV), which in turn issues an unconditional and irrevocable primary personal guarantee in favour of Covered Bond subscribers and third parties participating in the Programme.

For the purposes of the aforesaid Programme, the role of issuing bank is played by the Banco di Desio e della Brianza S.p.A.

In terms of specific transfer agreements signed on 5 July 2017, the Banco di Desio e della Brianza S.p.A. and the Banca Popolare di Spoleto S.p.A. have ceded two initial portfolios of loans deriving from property mortgages granted to private individuals.
The loan portfolios have been ceded to Desio OBG S.r.l., a special purpose vehicle specifically established for this Programme, in which the Banco di Desio e della Brianza S.p.A. is the majority shareholder and which is part of the Gruppo Banco Desio.

As regards all normal day to day operations relating to ceded mortgage loans, the ceding of said mortgage loans will not in itself affect the mortgage debtor in any way, since the applicable branch will continue to handle all matters relating to the aforesaid loans, and the terms and conditions applicable to the respective mortgage loans shall remain unchanged.

Hereunder is a list of the mortgage loans ceded to Desio OBG S.r.l. in terms of the cession provisions contemplated in Government Gazette No. 1700023978 – Part II, No. 84, dated 18/07/2017, an applicable extract of which is attached hereto.

Last updated 12/05/2017