MTS announced today that Cdulas Hipotecarias, Spanish debt securities collateralised with pools of mortgages of the issuing entity, will be listed on EuroCredit MTS along with Pfandbriefe and Obligations Foncires, extending the range of benchmark covered bonds available on the platform.
Eligible Cdulas must meet the Euros 3 billion minimum size with the issuer needing at least Euros 10 billion in total outstanding debt, or Euros 8 billion with the commitment from the issuer to reach Euros 10 billion within 12 months from first listing. This total outstanding debt includes only those Financial Instruments covered with mortgages or public sector loans of at least Euros 500 million in size.
Cdulas of Banco Bilbao Vizcaya Argentaria (BBVA) and AyT Cdulas Cajas are currently eligible for listing and will be available for trading on EuroCredit MTS as soon as at least seven Market Makers commit to quote such instruments.
“We are extremely pleased by this development. Not only does this recognize the benchmark status achieved by Cdulas Hipotecarias, it now paves the way for the further internationalisation of our bonds through the MTS network, and with it, the improved liquidity of these bonds,” says Luis Snchez-Guerra Roig, Director of Capital Markets at Ahorro Corporacin Financiera (AyT Cdulas Cajas).
Jos Luis Dominguez de Posada, Director of Issuance at BBVA, added: “Having pioneered the Jumbo Cdulas Hipotecarias issuance, we are delighted to hear the eligibility of Cdulas on EuroCredit MTS.
The listing of Cedulas on the platform will increase the visibility and liquidity of this product, to the benefit of both investors and issuers.”
EuroCredit MTS represents approximately 23% of the Pfandbrief and Obligation Foncire covered bond market with the cumulative outstanding size of the listed bonds standing at slightly under Euros 96 billion. The increasing success of EuroCredit MTS is evidenced by the growth of 20% in its turnover activity during the past year with the record daily volume at Euros 1.39 billion (single-counted). To date, twenty-two (22) Market Makers and five Market Takers are participating on the system.