EUROHYPO Europäische Hypothekenbank S.A.
Address: Airport Center - 5, rue Heienhaff, L-1736 Senningerberg 
Postal address: Airport Center - 5, rue Heienhaff, L-1736 Senningerberg 
Telephone: 26 34 55 1 
Fax: 26 34 55 222 
Swift code: EUHD LU L1 
Web: http://www.eurohypo.lu  
Email: eurohypo.lux@eurohypo.com  

Date of establishment: 24/04/89 

Profile:


Founded in 1989 in Luxembourg with a licence for general banking, EUROHYPO Europäische Hypothekenbank S.A. (Eurohypo Lux) initially conducted mortgage banking business based on German law.

Further to receiving a special purpose banking licence in September 1999, Eurohypo is authorised to issue Pfandbriefe further to the Luxembourg Pfandbrief Law dated november 21st 1997.

This law is closely modelled on the German Mortgage Bank Act and has been included within the framework of Luxembourg Bank Law. Its aim is to combine the first rate quality of Pfandbriefe as an investment with a high degree of flexibility of the business field (internationalisation of lending activities).

The strong influence of the German Mortgage Bank Act is also reflected in the establishment of the special purpose bank principle in Luxembourg (limited to low risk business, preferential right of satisfaction of Pfandbrief investors, limitation of volume of Pfandbriefe outstanding to 60 times equity capital).

The collateral pools have been separated into mortgage and public sector debt collateral pools. The law also requires that derivative transactions concluded for hedging purposes, shall be included within the respective collateral pools.

Substitute cover is restricted to 20% of the collateral pool.

The external supervision of the business activities is carried out by three independent institutions:



The "réviseur spécial", whose function is comparable to that of the trustee of the German Mortgage Bank Act 
The "réviseur d´entreprise", who supervises the principle of integral matching (congruence of currency, interest rates and cover) 
The Luxembourg Supervisory Authority (CSSF) 

Lettres de Gage qualify as tier 1 paper.

In respect to the current regulations, these Pfandbriefe from Luxembourg are eligible for repo transactions with the European Central Bank (www.ecb.int) and the Swiss National Bank (www.snb.ch) .

The special quality and security provided by the Pfandbrief is evidenced in the investment guidelines of insurance and investment funds as well as the privilege of a 10% risk weighting.

Eurohypo Lux focuses on public sector lending in OECD countries and voluntarily limits activities to countries belonging to the EU and the European Economic Area, as well as Switzerland, USA, Canada and Japan. The Bank excluded definitly in their articles of association any lendings to Turkey, Mexico and South Korea.
Eurohypo Lux will issue all types of current debt instruments depending on market conditions and investor interest.