LGT and LLB Launch Liechtensteinisches Pfandbriefinstitut

LGT and Liechtensteinische Landesbank (LLB) have announced the creation of the Liechtensteinisches Pfandbriefinstitut (LPBI) in Vaduz. This new entity marks Liechtenstein's entry into the issuance of Pfandbriefe, a class of covered bonds safeguarded by mortgages on local real estate. The establishment of the LPBI enhances the financial stability of the Liechtenstein capital market by providing a platform for local banks to jointly issue these debt instruments.

The LPBI is set under the new Pfandbriefe act, providing a legal foundation since April 2025, with oversight by the Financial Market Authority Liechtenstein. Covered bonds are favored internationally for their dual protection from the issuing bank’s obligations and real estate collateral. This initiative aims to secure investments and stimulate the real estate market.

The LPBI's leadership team includes CEO Dr. Georg Stöckl from LGT and CRO Bettina Halter from LLB. The board is chaired by Christoph Reich of LLB, with Michael Bürge of LGT serving as Vice-Chair.