Question
Is it correct that a covered bond will be classified as a bond with a credit institution (financial corporation) as counterparty?
Background on the question
We would like to be sure how to classify covered bonds.
Answer
According to Article 3 (1) of the Directive (EU) 2019/2162 covered bonds are debt obligations issued by credit institutions. Therefore, provided they are eligible for disclosure in Template 10: Other climate change mitigating actions that are mot covered in the EU Taxonomy of Annex XXXIX to the Final draft implementing technical standards on prudential disclosures on ESG risks in accordance with 449a CRR, they should be disclosed under ' Financial corporations' type of counterparty (row ' Bonds').