LGT and Liechtensteinische Landesbank (LLB) have jointly established the Liechtensteinisches Pfandbriefinstitut (LPBI). With this step, the Liechtenstein financial centre will, for the first time, have the capacity to issue Pfandbriefe (covered bonds) – an internationally established class of debt instrument secured by first-lien mortgages on Liechtenstein real estate. The new institute closes a gap in the Liechtenstein capital market and strengthens the long-term stability of the financial centre.
The Pfandbriefinstitut gives participating Liechtenstein banks access to a shared platform for the joint issuance of covered bonds. The new Pfandbriefe act, adopted by the Liechtenstein Landtag in December 2024 and effective since April 2025, establishes the legal framework for the LPBI. As a licensed financial institution, the LPBI is directly supervised by the Financial Market Authority Liechtenstein. The institute’s covered bonds are backed by first-lien mortgages on Liechtenstein real estate and are subject to strict statutory requirements.
Pfandbriefe have a long and successful track record in many jurisdictions, including Switzerland. They are recognised internationally as a very secure asset class due to their two layers of protection: the obligations of the issuing bank and the underlying real estate collateral. Investors therefore benefit from a high level of security – an advantage that is particularly relevant in periods of economic uncertainty. At the same time, covered bonds broaden banks’ refinancing base, thereby contributing to the long-term stability of the Liechtenstein real-estate market.
"With the new Pfandbriefinstitut, we are strengthening the stability of the Liechtenstein financial centre and broadening its refinancing landscape. Our clients will also benefit, among other things from a more resilient mortgage market and improved long-term planning certainty", says Michael Bürge, CFO of LGT Group. Christoph Reich, CEO of LLB, says: "The close cooperation between LGT and LLB on this project underscores the Liechtenstein financial centre’s capacity for innovation. The new covered bond institute establishes infrastructure that opens up additional opportunities for banks and supports the long-term development of the capital market."
Dr. Georg Stöckl (LGT) will serve as CEO of the joint Executive Board of the Pfandbriefinstitut, with Bettina Halter (LLB) assuming the role of CRO. The Board of Directors will be chaired by Christoph Reich (LLB), and Michael Bürge (LGT) will assume the role of Vice-Chair. Other Board members include Daniel Bose (LGT), Andreas Oehler (LLB) and Karl Laternser (BEWERA AG). The LPBI will issue its first covered-bonds in the coming months.