Product information Lettres de Gages 

Lettres de Gage (LdG) are covered bonds issued by a bank in Luxembourg, which are collateralized by a cover pool defined for this purpose.

The legal basis is on the one hand the “Law of 05 April 1993 on the financial sector, article 12” incl. its amendments until July 07, 2022. In addition, the "Law of December 08, 2021 on the issuance of covered bonds" has been published, which takes effect from July 08, 2022.

The Lettres de Gage of NORD/LB Covered Bond Bank have all been issued prior to July 08, 2022. As the Bank will not issue any new Lettres de Gage from the existing cover pools as of this date, the transitional provisions of Article 41 of the Law of 08 December 2021 will apply to these outstanding Lettres de Gage.

This means that all outstanding Lettres de Gage will continue to retain their status as covered bonds under Directive (EU) 2019/2162 (EU Covered Bond Directive)  until their respective maturity dates.

In addition, the Luxembourg supervisory authority CSSF (Commission de Surveillance du Secteur Financier) has published circulars with additional requirements:

- CSSF 01/42 Property Valuation Requirements.

- CSSF 18/705 Valuation standards for determining the fair value of renewable energy assets eligible for the cover pool of covered bond banks

- CSSF 18/706 Transparency requirements pursuant to article 12-6, paragraph 2, of the law of 22 June 2018

- CSSF 18/707 Minimum requirements for the maintenance and control of the cover register, the cover assets as well as the liquidity protection in the covered bond business


Law of 5 April 1993 (coordinated version) – CSSF

Law of 8 December 2021 (only in French) – CSSF

Circular CSSF 01/42 (as amended by Circular CSSF 13/568) – CSSF

Circular CSSF 18/705 – CSSF

Circular CSSF 18/706 – CSSF

Circular CSSF 18/707 – CSSF


As of 07/2022