NIBC successfully launches EUR 500 million AAA rated conditional pass through covered bond

Press Release -

Yesterday, NIBC Bank successfully launched a EUR 500 million conditional pass through covered bond, a new type of Dutch law based covered bond backed by a pool of Dutch residential mortgage loans. The program is registered with the Dutch Central Bank and benefits from favourable regulatory treatment.

This covered bond programme differs from the traditional covered bond structures, due to the absence of derivatives and inclusion of an orderly wind-down mechanism of the cover pool subject to strict conditions. These features create more stability in ratings and structure.

The covered bond programme is expected to be rated AAA by both Fitch and S&P. The deal was 2.7 times oversubscribed with an order book of over EUR 1.3 billion, underlining the interest shown by investors from among others Germany, the Netherlands, the United Kingdom and the Nordic countries. The interest followed an extensive roadshow across Europe over the past few weeks with support of the syndicate banks consisting of Credit Suisse, LBBW, NIBC and RBS. The transaction was launched and priced in one day, at an attractive spread of mid swaps +50 after initial spread guidance of mid-50s.

With this transaction, NIBC once again shows its expertise and capability in structuring products that meet today's investor demands.

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