Borenius advised Danske Mortgage Bank Plc on consent solicitation and the update of its Covered Bond Programme

We advised Danske Mortgage Bank Plc (“Danske”) as its Finnish Counsel on consent solicitation as Danske amended the terms and conditions of its outstanding covered bonds issued under the English law Programme.

The process was designed to bring Danske’s outstanding covered bonds under the new Finnish Act on Mortgage Banks and Covered Bonds (151/2022) (the “New Covered Bond Act”). We also assisted Danske with updating its EUR 10 billion covered bond programme to ensure that the programme meets the requirements imposed by the New Covered Bond Act.

The New Covered Bond Act entered into force on 8 July 2022. Danske’s bonds, which were issued under the previous law (i.e. the Finnish Act on Mortgage Credit Bank Operations (688/2010)), were not automatically subject to the New Covered Bond Act and required the bondholders’ decision to amend the bonds’ terms and conditions.

Now that the consent solicitation has been successfully completed, Danske will administer only one cover pool that is subject to the New Covered Bond Act.