NIBC lists €500 million bond on Euronext Amsterdam

PUBLISHED: 09 Apr 2014 @ 21:27 | Comments (0) |

Order book was “three times oversubscribed”

Euronext, a wholly owned subsidiary of IntercontinentalExchange Group (NYSE:ICE), today announced that NIBC Bank listed its successfully launched EUR 500 million conditional pass through covered bond on Euronext Amsterdam (ISIN XS1054163347).

The issue followed the inaugural and innovative EUR 500 million transaction of October 2013, that gained worldwide recognition and won the IFR Covered Bond of the Year Award.

The conditional pass through covered bond differs from existing bonds, due to the absence of derivatives and inclusion of an orderly wind-down mechanism subject to strict conditions. NIBC’s conditional pass through covered bond program is Dutch law based and backed by a pool of Dutch residential mortgage loans.

The program is registered with the Dutch Central Bank and benefits from a favourable regulatory treatment. These features create more stability in ratings and structure. The bonds are expected to be rated AAA by both Fitch and S&P.

“The deal was very well received in the market. The order book was three times oversubscribed with a total of around EUR 1.5 billion, underlining the interest shown by institutional investors from among others Germany, the Netherlands, the United Kingdom, France and the Nordic countries”, said Niek Allon, Associate Director Treasury of NIBC Bank.

“We welcome the listing of this NIBC bond on Euronext Amsterdam,” said Anne Louise Metz, Head of Listing Euronext Amsterdam.”Bonds like this are part of the broad spectrum of instruments we at Euronext are listing in order to support a range of financing sources for our issuers.”

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