EBA attempts to put brakes on FIG SLBs

By Tyler Davies
22 Apr 2021

The European Banking Authority has warned issuers against rushing into the sustainability-linked bond market, as it works on deciding whether the structures conflict with eligibility criteria for capital and other loss-absorbing instruments. Despite the warning, market participants are pushing hard to make sure banks are able to issue SLBs in any format, writes Tyler Davies.

Berlin Hyp removed any language about “bail-in” from the contracts for its market-opening SLB last week, as a way of avoiding any debate as to whether the preferred senior debt could count towards the minimum requirements for own funds and eligible liabilities (MREL).

Most European banks are not really in ...

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