Ålandsbanken Abp’s Covered Bonds Issue

Castrén & Snellman advised Ålandsbanken Abp and Borgo AB on the deal.

Ålandsbanken Abp and Borgo AB completed the issue of SEK 5,500,000,000 covered bond, Ålandsbanken Abp as initial issuer and Borgo AB as subsequent issuer.

The terms and conditions of the covered bonds allow covered bonds to be transferred to Borgo AB at a later stage subject to the approval of Ålandsbanken Abp and Borgo AB. The contemplated timing for the transfer s the first half of 2022.

The new covered bond issue is part of a transaction in which Ålandsbanken Abp, ICA Banken AB, Ikano Bank AB (publ), and Söderberg & Partners Holding AB have established a new mortgage company, Borgo AB, and are further establishing a joint mortgage platform on the Swedish market. As part of this transaction, Ålandsbanken Abp will transfer its Swedish mortgage loans, SEK-denominated covered bonds it has issued, and SEK-denominated bonds from its liquidity portfolio to Borgo AB.

Borgo AB is a digital start-up mortgage company licenced by the Swedish Financial Supervisory Authority.

The Castrén & Snellman team included Janne Lauha (Picture), Tero Tuomisto, Mikko Heinonen, Sami Lommi, Suzanne Simon-Bellamy, Markus Rahnu, Valter Olkkonen and Topi Leinonen.

Involved fees earner: Mikko Heinonen – Castrén & Snellman; Janne Lauha – Castrén & Snellman; Topi Leinonen – Castrén & Snellman; Sami Lommi – Castrén & Snellman; Valter Olkkonen – Castrén & Snellman; Markus Rahnu – Castrén & Snellman; Suzanne Simon-Bellamy – Castrén & Snellman; Tero Tuomisto – Castrén & Snellman;

Law Firms: Castrén & Snellman;

Clients: Alandsbanken Abp;

Author: Federica Tiefenthaler