Luxembourg

Standard & Poor’s has assigned a triple-A rating to Dexia LdG Banque’s public sector covered bonds and shown how the Luxembourg-based issuer is taking advantage of the jurisdiction's relaxed eligibility criteria.

Dexia LdG Banque launched the first issues off its new Eu25bn MTN programme last Friday (September 28), two Eu675m floating rate notes backed by public sector collateral.

It’s not the first time, and it won’t be the last, that participants in the German capital market have decamped to Luxembourg in response to restrictive legislation or tax rules. Philip Moore reports.