NWB Bank exceeds €10 billion mark in sustainable bond issuance
NWB Bank has once again successfully issued a sustainable bond, this time for an amount of €1 billion. The issuance of this so-called first SDG Housing Bond brings the total of sustainable funding attracted by the bank in excess of €10 billion. This makes NWB Bank the largest Dutch issuer of SRI (Socially Responsible Investing) bonds and internationally the bank is also a frontrunner in this field. The proceeds from this Housing Bond – which is linked to the UN Social Development Goals – will be used for the purposes of financing and sustainability of social housing in the Netherlands.
‘We are extremely proud to be the first Dutch party to have raised over €10 billion in sustainable funding, especially in a week in which the Dutch State will enter the sustainable bond market for the first time. As a sustainable bank for the public sector, the issuance of SRI bonds is now an indispensable part of our business operations. In many cases, it is even more attractive than the issuance of traditional bonds’, says Frenk van der Vliet, member of NWB Bank’s Managing Board.
NWB Bank has been actively issuing SRI bonds since 2014. The bank issues Water Bonds (Green Bonds) for the purposes of financing sustainable projects conducted by water authorities and Affordable Housing Bonds (Social Bonds) for financing social housing. The framework for the Affordable Housing Bonds was recently modified and extended, thereby giving rise to the SDG Housing Bond Framework and enabling the proceeds from these bonds to also be used for the purposes of making social housing more sustainable. More than 15% of NWB Bank’s total funding now comprises sustainable bonds.
The SDG Housing Bond forms part of NWB Bank’s €60 billion Debt Issuance Program. Settlement of the bond will take place on 28 May 2019. The 8-year bond will be repaid in full on 28 May 2027. The annual coupon interest is 0.125% and the re-offer price is 99.484%. Lead managers for this transaction are Bank of America Merrill Lynch, HSBC, SEB and Rabobank. Listing on the Luxembourg Stock Exchange and the Luxembourg Green Exchange has been requested for the SDG Housing Bond.