NBG covered bond does not include put option
The National Bank of Greece’s €750m three year conditional pass through (CPT) covered bond does not include an investor put option. Although the programme allows for put options it was not used in this week’s deal and is unlikely to be used in future deals, according to the head of covered bond structuring at UBS which arranged the transaction.
The put option allows investors to sell back their bonds to the issuer at the nominal value plus accrued interest and can be triggered by investors after the expected maturity date.
Many covered bond analysts had assumed that the put option had been used in this week’s NBG deal
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