NIBC Bank launches EUR 500 million inaugural soft bullet covered bondNews Release -
On Wednesday 8th of June NIBC Bank launched its inaugural EUR 500 million soft bullet covered bond. The bond has a maturity of 5 years and a fixed rate coupon of 1.875%.
Despite the volatile interest rate environment the target size of EUR 500 million was reached within an hour after announcement. The orderbook continued to grow and reached well above EUR 900 million allowing NIBC Bank to price the transaction at a final spread of mid swaps +11bps, 3 basis points tighter from the initial spread announced.
The strong outcome bears testament to the presence of NIBC Bank in the capital markets as a regular issuer of covered bonds. Investors value the robust programme structure and the high quality collateral of Dutch residential mortgages. This inaugural transaction was supported by investors from across Europe, with Germany and the Netherlands providing most of the demand.
The issuance of this soft bullet covered bond follows the recent finalisation of NIBC Bank’s soft bullet covered bond programme, which is registered with the Dutch Central Bank (DNB).