Germany provided a top up to its Postal Pension deal in a second round of financing that is expected to sell around 7.5 billion ($9.57 billion) of pension obligations. Although the deal will be treated as a debt transfer by national regulators, European Union regulators are taking a different view.
Global Postal Pensions Securitization PLC is the second securitization of state-owned pension liabilities due to be paid by successor companies of Deutsche Bundespost to retired civil servants (and their survivors) previously employed by the firm. Similar to the first deal issued last June, the notes are not backed by an explicit guaranty from the Federal Republic of Germany, but rely on implicit state support. The ratings on the notes are credit-linked to those of the Federal Republic of Germany