Deutsche Pfandbriefbank has signed up for the Covered Bond Label, becoming only the third German issuer to join, and its head of funding said the Harmonised Transparency Template is changing German attitudes towards the initiative – under which 59% of pools are now HTT-compliant.

NordLB and UniCredit are the only German covered bond issuers to have previously joined the Label, and did so during its start-up phase in 2012, meaning no German issuer has joined for almost four years.

Götz Michl, head of funding at Deutsche Pfandbriefbank (pbb), said the issuer signed up for the Label on the back of the launch of the Harmonised Transparency Template (HTT).

“Joining the Covered Bond Label is taking a step towards even further overall transparency,” he said. “We now have published the HTT, which makes our Pfandbriefe better comparable with other European covered bonds.

“It is also about the internationalisation of the investor base. For investors it is now easier to compare different cover pools and different systems.”

The HTT was introduced at the start of the year, but with a one year phase-in for issuers adhering to the Covered Bond Label. Pbb has already made its template available.

Michl added that the HTT has also been key in changing the attitude of other German issuers towards the Covered Bond Label.

“Previously, the criticism German issuers had is that the Pfandbriefe is obviously a covered bond, and therefore it was not necessary to have a specific label qualifying that,” he said. “The key thing has been the HTT and the comparability of the data that it allows.”

The Association of German Pfandbrief Banks (vdp) is encouraging participation in the initiative, offering to help its members convert reporting required under Section 28 of the Pfandbrief Act into the HTT format.

Luca Bertalot, EMF-ECBC secretary general and Covered Bond Label Foundation administrator, welcomed pbb’s move.

“Deutsche Pfandbriefbank is a major German issuer with a long-standing tradition in the covered bond arena,” he said. “Their Covered Bond Label membership demonstrates the traction that the Covered Bond Label is gaining in the most traditional covered bond jurisdiction: Germany.”

He told The CBR that the one year phase-in of the HTT, whereby Labelled issuers have to provide the data by 1 January 2017, is well on track, with information on 55 out of 93 Labelled cover pools (59%) now disclosed in line with the format. All Label issuers in countries including Germany, Ireland, Portugal and Singapore have now transitioned to the HTT and wholesale adoption is expected in further countries shortly.

“With the quick adoption of the HTT, the industry is demonstrating its commitment to transparency and its ability to self-regulate,” said Bertalot. “More can be done, and will be done, to ensure that investors have at their fingertips all the information they need to take an informed investment decision.

“Investors, on their part, are showing a genuine interest in the HTT with their frequent and insightful comments and recommendations regarding the new format of disclosing information. This demonstrates the added value of the HTT to their activities.”