Henry Davis York Forms Australia's First Covered Bonds Team

Although covered bonds are not currently allowed as a form of funding for Australian banks, the Henry Davis York law firm is preparing itself for a possible change in this situation.  The text below is from a public announcement (Nov. 25) by the firm.

In response to an emerging interest from the banking industry, rating agencies and regulators and clients, Sydney-based law firm, Henry Davis York (HDY), has formed Australia's first specialist covered bonds team.

The interdisciplinary team includes lawyers with covered bond experience in the UK and Europe along with specialists in corporate advisory, derivatives, tax and regulation who collectively provide the complete range of skills and experience to effectively structure and document these financing vehicles.

Lead partner of the HDY covered bonds team, Mr Alex Mufford, said: "While a market may take some time to develop should the Australian Government decide to pass the necessary legislation to enable this financing technique, it could eventually serve as a significant means for Australian depository institutions to strengthen their balance sheets by diversifying their funding sources".

This pioneering initiative by Henry Davis York coincides with considerable interest from the industry which is actively involved in consultation with the Australian Government to enable covered bonds to be issued in Australia. 

Dr Mick Young, a lawyer and specialist in the area said: "Henry Davis York's covered bonds team is well-positioned to assist clients to better understand this product and, should legislative change come, to strategically position them to capitalise on emerging opportunities from the development of an Australian covered bond market".

HDY's covered bonds team is also actively involved in encouraging the growth and recognition of a covered bond market in Australia through education, research and advocacy. 

Website: www.hdy.com.au