find the latest legal job
Corporate/Commercial Lawyers (2-5 years PAE)
Category: Corporate and Commercial Law | Location: Adelaide SA 5000
· Specialist commercial law firm · Long-term career progression
View details
Graduate Lawyer / Up to 1.5 yr PAE Lawyer
Category: Personal Injury Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Mentoring Opportunity in Regional QLD · Personal Injury Law
View details
Corporate and Commercial Partner
Category: Corporate and Commercial Law | Location: Adelaide SA 5000
· Full time · Join a leading Adelaide commercial law firm
View details
In-house Legal Counsel & Commercial Lawyers
Category: Corporate and Commercial Law | Location: All Sydney NSW
· Providing lawyers with flexibility and control over when they work, how they work and who they work for.
View details
In-house Legal Counsel & Commercial Lawyers
Category: Corporate and Commercial Law | Location: All Melbourne VIC
· Providing lawyers with flexibility and control over when they work, how they work and who they work for.
View details
BOQ advised on Australian first bond program

BOQ advised on Australian first bond program

Karolina Popic

The Bank of Queensland has established the first conditional pass-through covered bond program by an Australian bank.

Firms: Allen & Overy (Bank of Queensland); Ashurst (NAB and BNY Mellon); MinterEllison (Perpetual Corporate Trust)

Deal: The Bank of Queensland established a new conditional pass-through covered bond program. NAB acted as the arranger and swap provider, BNY Mellon acted as the bond trustee and paying agent, and Perpetual Corporate Trust acted as the covered bond guarantor.

Value: $3.25 billion

Area: Banking and finance

Key players:
The Allen & Overy team advising the Bank of Queensland was led by partner Karolina Popic (pictured), with support from senior associates Bianca Spata, Minesh Patel and Jamie Taylor, and lawyer Stephanie Masters.

The Ashurst team advising NAB was led by partner Jennifer Schlosser, who was assisted by senior associate Eugene Ng. Partner Jamie Ng advised BNY Mellon Trust Company of Australia Limited as a bond trustee, with assistance from senior associate Kevin Lu.

The MinterEllison team advising Perpetual was led by partner John Elias, with support from senior associate Jonathan Maher and lawyer Penny Robinson.

Deal significance: The Bank of Queensland has established a $3.25 billion conditional pass-through (CPT) covered bond program, the first of its kind by an Australian bank in Australia. Similar programs exist in Europe.

This is the seventh covered bond program established by an Australian bank. Allen & Overy has advised on all seven, according to a statement from the firm.

“The bonds’ ratings are fully delinked from the issuer’s rating under the Moody’s ratings criteria and have four notches of downside protection under Fitch’s criteria, allowing lower rated issuers to issue AAA covered bonds with less exposure that the program will be affected by external ratings events,” Allen & Overy said.

“The CPT features also improve the collateralisation levels required to support the AAA rating on the program.”

The firm’s lead partner on the deal, Karolina Popic, said it was a groundbreaking move from BOQ.

“The conditional pass-through features move beyond the traditional soft-bullet and hard-bullet programs established by the bigger Australian banks, allowing Bank of Queensland to establish a program that is more efficient from a collateral perspective and less exposed to downgrade risk,” she said.

“Bank of Queensland has paved the way for other banks similar to it to diversify its investor base and access funding through this product.”

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

BOQ advised on Australian first bond program
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Dec 18 2017
Summer in the city
Across Australia, a number of law students have kicked off their commercial law aspirations with the...
microscope
Dec 18 2017
‘Exorbitant legal fees’ under government microscope
With the growing number of class action proceedings in Australia, the government is looking at how ...
Funds, money, cash
Dec 18 2017
Law Access WA receives welcome funding
Law Access Western Australia has received a grant from the state government to fund its pro bono leg...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...