The green bond market is currently one of the fastest-growing fixed-income segments, with issuances tripling between 2013 and 2014. There is a sense of excitement and optimism surrounding the market – initially led and developed by the multilateral development banks (MDBs) and international financial institutions (IFIs), but now actively promoted, sponsored and supported by the
Covered Bonds
CHAPS and CREST settlement days to be extended in summer 2016
I bring good news from the Bank of England. Whether you have been up all night trying to close a £1 billion securities transaction for your client, or you are buying a house and there’s a last minute snag, the deadline for settling securities transactions and making high-value cash transfers is due to be extended…
Who needs New York law when you can have an English scheme of arrangement instead?
DTEK Finance B.V., Re [2015] EWHC 1164 (Ch)
Following upon the November judgment in Re APCOA Parking Holdings GmbH, last week Mrs Justice Rose sanctioned a scheme of arrangement between the Dutch company DTEK Finance B.V. (“DTEK”) and holders of notes issued by DTEK in 2010 (the “Notes”). This is notable in that it…
Securitisation: a nationalised pastime?
I was encouraged to see Virgin Money announce its second securitisation of the year, Gosforth 2012-2, particularly so as Virgin Money is also one of the 30 or so banks that have now signed up to the Bank of England’s Funding for Lending Scheme.
The Funding for Lending Scheme (FLS) was introduced by the Bank of England back in July to reduce funding costs for banks and building societies to stimulate lending to UK households and small businesses. Under the scheme, between August 2012 and January 2014 any participating bank or building society can borrow UK Treasury Bills for a 4-year period in exchange for providing eligible collateral as security. Broadly speaking, the eligible collateral will include certain loans, securities and other assets also eligible under the Bank of England’s Discount Window Facility. The costs to participating banks and building societies for this lending depends on how much lending they do into the real economy but can be as low as 0.25% per year. If this results in banks lending more to the real economy at better rates and borrowers have the appetite to take on such debt sufficiently to make a noticeable impact, then that’s great …. mostly.
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