Legal DealFolio - Global Bank, Panama - Covered Bond Programme

Clifford Chance has advised Deutsche Bank as arranger on the establishment by Global Bank, a bank based in Panama, of a USD 500m covered bond programme. The first issue under the programme, a USD200m five year Rule 144A/Regulation S offering, has closed. The transaction is important in establishing covered bonds as a funding instrument in Latin America, a new market, and follows the successful adoption of covered bonds by banks in Australia, New Zealand, Canada and other new markets around the world. The bonds were issued by Global Bank and rated Baa3 by Moodys and BBB- by Standard & Poor's. The one notch upgrade above the unsecured rating of the Bank, achieved through the structuring, meant the bonds were issued at investment grade. Since Panama does not have a covered bond law in place, the structure uses securitisation techniques, including a local law guaranty trust, to ensure the cover pool is insolvency remote from the issuing bank. Consequently, investors have recourse both to the Bank and to the cover pool assets held in the guaranty trust. The cover pool comprises Panamanian residential mortgages denominated in US dollars. Peter Voisey led the Clifford Chance team.

Deal Date:	17-10-2012	Practice Area:	Debt Capital Markets
Deal Title:	Global Bank, Panama - Covered Bond Programme	Industry:	Banks
Description:	Clifford Chance has advised Deutsche Bank as arranger on the establishment by Global Bank, a bank based in Panama, of a USD 500m covered bond programme. The first issue under the programme, a USD200m five year Rule 144A/Regulation S offering, has closed. The transaction is important in establishing covered bonds as a funding instrument in Latin America, a new market, and follows the successful adoption of covered bonds by banks in Australia, New Zealand, Canada and other new markets around the world. The bonds were issued by Global Bank and rated Baa3 by Moodys and BBB- by Standard & Poor's. The one notch upgrade above the unsecured rating of the Bank, achieved through the structuring, meant the bonds were issued at investment grade. Since Panama does not have a covered bond law in place, the structure uses securitisation techniques, including a local law guaranty trust, to ensure the cover pool is insolvency remote from the issuing bank. Consequently, investors have recourse both to the Bank and to the cover pool assets held in the guaranty trust. The cover pool comprises Panamanian residential mortgages denominated in US dollars. Peter Voisey led the Clifford Chance team.
Financial Center:	London	Value:	100.01-500.00
Advised Party:	Arranger	Law Firm	Clifford Chance
Assets Jurisdiction	Panama	Issuer Jurisdiction	United States
Classification:	Securitisation and Structured Finance Covered Bonds	Lawyer	Peter Voisey

Practice Areas -

Debt Capital Markets Law Firms and Lawyers

Practice Areas - Debt Capital Markets Law Firms and Lawyers