Future mortgage bonds of Takarék Mortgage Bank qualify as European premium covered bonds

The MNB has authorised Takarék Mortgage Bank to use the European premium covered bond logo for its future mortgage bonds, according to the extraordinary announcement of the bank on 12 September.

Eligibility to use the European Premium Covered Bond logo means that Takarék Mortgage Bank fully complies with the requirements of the European Covered Bond Regulation. The licence also shows that the procedures and practices applied in the bank's mortgage bond issues ensure compliance with the requirements that are more stringent than those of the prudential requirements for European credit institutions; thus, the mortgage bonds of Takarék Mortgage Bank are considered a low-risk investment.

With the authorisation granted by the central bank on 12 September 2022, the future mortgage bond issues of Takarék Mortgage Bank will be placed in a premium category comparable to other European covered bonds. The use of the logo also applies to the latest tap of the bank’s five-year green mortgage bond with series number TZJ27NF1, auctioned on 12 September.

Gyula Nagy, CEO of Takarék Mortgage Bank Co. Plc. said: "We deem the approval to use the European Premium Covered Bond logo as a significant step forward, as it not only recognises the safety and development of the domestic mortgage bank and mortgage bond regulation, it also reflects the efforts and achievements of Takarék Mortgage Bank in ensuring that the mortgage bonds we issue are recognised as securities offering high investor safety at the European level."