Financing
The Erdölbevorratungsverband (EBV) is financed through promissory notes and registered bonds. Bullet notes and bonds with fixed rates that are based on Euribor swap rates as the funding benchmark may be issued in euro. The maturity of the instruments issued is between 10 to 30 years.
It must be firstly pointed out with regard to the collateral provided by the EBV that the Association cannot become insolvent under the statutory provisions. In addition the Association may adjust the contributions made by its members in line with costs. Under the statutory regulations the Federal Republic of Germany has to assume the liabilities of the EBV if it is dissolved.
Furthermore the instruments issued by the EBV are eligible to be included in the covered portfolios of insurance companies. It issues a negative declaration to all obligors with regard to all liabilities stating that it will not place an obligor in a better position than another.