Regulatory Alerts2018-12-19
General Valuation Principles for Renewable Energy Assets in Covered Bond Cover Pools under the Law of 22 June 2018
The Commission de Surveillance du Secteur Financier (CSSF) issued Circular 18/705 to mandate specific valuation methodologies for regulated entities. The directive requires covered bond banks to apply standardized general valuation principles when calculating the fair value of renewable energy assets qualifying for their cover pools. These rules operationalize the statutory framework established by the Law of 22 June 2018 to guarantee uniform asset pricing across the covered bond market.
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