Coop Pank AS application for obtaining an additional license for issuing covered bonds
2024年5月13日 - 3:30PM
Coop Pank AS application for obtaining an additional license for
issuing covered bonds
Today, May 13th, 2024, Coop Pank AS submitted an
application to the Financial Supervision Authority for an
additional activity license enabling the issuance of covered bonds.
Obtaining an additional license is subject to regulatory approval
and can be expected to take up to six months.
After obtaining an additional activity license
authorizing the issuance of covered bonds, the bank decides on the
issue, volume and other conditions of the covered bond issue in
accordance with the market situation and the bank's financing needs
at the time.
The purpose of issuing covered bonds is to
diversify the bank's financing structure and raise stable long-term
funds. At the expense of the included funds, the bank can finance
additional lending activities and reduce the volume of more
expensive term deposits. The more expensive deposits attracted
through the current deposit platforms can be reduced at the expense
of capital raised with covered bonds issued on the collateral of
housing loans. Reducing the financing cost enables the Bank to
offer cheaper loans to customers.
According to Paavo Truu, CFO of Coop Pank, the
volume of Coop Pank's housing loan portfolio has grown large enough
to offer the bank the opportunity to issue covered bonds. At the
same time, in the longer term, it will lead to more stable funding
for financing customers. The first step in issuing covered bonds
has been taken by submitting an application for an additional
activity license.
Coop Pank, based on Estonian capital, is one of
the five universal banks operating in Estonia. The number of
clients using Coop Pank for their daily banking reached 191,800.
Coop Pank aims to put the synergy generated by the interaction of
retail business and banking to good use and to bring everyday
banking services closer to people’s homes. The strategic
shareholder of the bank is the domestic retail chain Coop Eesti,
comprising of 330 stores.
Additional information:Paavo TruuCFOPhone: 5160 231E-mail:
paavo.truu@cooppank.ee