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CDP Covered Bonds are secured by a well-diversified portfolio of high quality public sector assets.
Cover assets are originated out of CDP's public sector lending business, and thus actually restricted to loans repayable or guaranteed by Italian central and local governments, even though the Programme allows for other type of assets.
Proceeds from the issuance of Covered Bonds backed by loans to Italian central and local governments are used for granting new loans to the same entities, thus creating new eligible assets for the revolving cover pool.
The entire portfolio collateralises all the outstanding bonds issued under the Programme, meaning that any new series of Covered Bond will rely on the same cover pool (ranking pari passu among each other regardless of the date of issue).
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