BNP Paribas Fortis is working towards establishing a Belgian covered bond programme, having received from the Belgian central bank the initial licence it requires to do so, although the overall process is expected to take some time.

According to the National Bank of Belgium, BNP Paribas Fortis was approved to join the list of credit institutions authorised to issue Belgian covered bonds (Pandbrieven) on 9 February.

When it begins issuing covered bonds it will join Belfius, KBC and ING Belgium in the Belgian market, although representatives of BNP Paribas Fortis have been involved in the development of the country’s framework since it was initially being drafted.

Under Belgium’s covered bond framework issuers need to obtain “general” and “specific” licences. BNP Paribas Fortis has obtained the former as a credit institution, whereas the latter will relate to its programme.