Transaction Update: KEB Hana Bank US$5 Billion Global Covered Bond Program

Dual recourse to both the highly rated issuer KEB Hana Bank and the cover pool comprising Korean mortgage loans with a weighted-average current unindexed loan-to-value ratio (LTV) of 53.3%. Protection provided by the Korean Covered Bond Act and supervision regulation on issuance of covered bonds issued by Korea's Financial Services Commission (FSC) (together, the Korean Covered Bond Laws). The asset coverage test could partially mitigate asset performance deterioration and deposit set-off risk. Liquidity risk is mitigated through structural mechanisms. These include the extendable maturity for soft bullet covered bonds, and the pre-maturity test (PMT) for the relevant series of hard bullet covered bonds. Potential structural mitigants, such as a liquidity reserve should the rating on the issuer fall below 'A',

...+ Dual recourse to both the highly rated issuer KEB Hana Bank and the cover pool comprising Korean mortgage loans with a weighted-average current unindexed loan-to-value ratio (LTV) of 53.3%. + Protection provided by the Korean Covered Bond Act and supervision regulation on issuance of covered bonds issued by Korea's Financial Services Commission (FSC) (together, the Korean Covered Bond Laws). + The asset coverage test could partially mitigate asset performance deterioration and deposit set-off risk. + Liquidity risk is mitigated through structural mechanisms. These include the extendable maturity for soft bullet covered bonds, and the pre-maturity test (PMT) for the relevant series of hard bullet covered bonds. + Potential structural mitigants, such as a liquidity reserve should the rating on the issuer fall below 'A', enhance the short-term liquidity of this program....

Transaction Update Report