NIBC continues building curves

On 12 April 2018, NIBC launched a EUR 500 million fixed rate senior unsecured transaction, with a maturity of 5 years. Against the back-drop of stable markets, NIBC opened the order book with an initial price guidance of mid-swaps plus 85 to 90 basis points.

Following a strong book building process, final orders reached EUR 900 million which allowed for final pricing to be set at mid-swaps plus 78 basis points.

Interest was widespread from across Europe, with more than 90 accounts participating in the trade. Investors from the Netherlands, France and Germany underpinned demand, followed by Spain and the UK.

The syndicate for this transaction consisted of ABN AMRO, Goldman Sachs, JP Morgan, Morgan Stanley and NIBC Markets.

Statement of the CFO, Herman Dijkhuizen:

“This new transaction further strengthens NIBC’s funding profile in the capital markets, following our 10- years covered bond transaction in January of this year and our highly successful AT1 transaction back in September 2017. The new transaction is further testimony that NIBC is building up its senior unsecured curve step by step, achieving a funding level of mid-swaps plus 78 basis points, compared to a funding level of mid-swap plus 140 basis points for a similar transaction in January of 2017.”