Client stories

NatWest helps BNG launch 2023 funding year

Driven by social impact

BNG Bank is the bank of and for the Dutch public sector, with a mission to help minimise the financing costs of the public sector. The bank offers customised financial services to local authorities, housing associations, healthcare and educational institutions, and public utilities. Half of the bank's share capital is held by the Dutch State and the other half by Dutch municipalities, provinces, and a district water board.

In its “Road to Impact” strategy, the bank, which is also one of the largest issuers in the Netherlands with an expected funding programme of between €15-16 billion, outlines its purpose to maximise the social impact of its activities by helping its clients address social challenges.

In October 2021, BNG succeeded its existing best-in-class framework with the BNG Bank Sustainable Finance Framework, which consists of 2 sub-frameworks: 1) one for Dutch Municipalities, and 2) one for Dutch Social Housing Associations. These sub-frameworks connect the expenditures of Dutch municipalities and of Dutch social housing associations to the 17 UN Sustainable Development Goals. ESG ratings agency, ISS-ESG, provided a Second Party Opinion (SPO), confirming that the framework follows the ICMA Green Bond Principles (GBP), the ICMA Social Bond Principles (SBP) and the LMA/APLMA/LSTA Green Loan Principles (GLP).

Investors show strong appetite for 10-year Social Bond

Planning to issue a new 10-year EUR Social Bond, with the proceeds of the bond to be utilised for lending to Dutch Social Housing Associations to finance their SDG-linked expenses, BNG Bank mandated NatWest as Joint Bookrunner. This follows NatWest’s Joint Bookrunner role for BNG’s 5-year €1.5 billion benchmark in October last year, and NatWest’s Joint Lead Manager role for BNG’s 15-year €1.5 billion Social Bond in November 2021.

BNG joined a flurry of issuers kickstarting 2023 primary markets when it announced its 10-year Social Benchmark right at the beginning of January. The transaction gained investor momentum from the start, with order books reaching a final volume of over €2.1 billion within hours. The strong demand allowed BNG Bank to set the deal size at €1.5 billion and the annual coupon at 3.000%.

UK investors led demand, taking 25.3% of the allocation, followed by French investors (15.9%) and investors from Austria/Germany/Switzerland with 14.5%. Looking at investor type, Asset managers and Banks placed the majority of orders, taking 38.3% and 37.7% respectively.  

BNG bond aligns with NatWest’s purpose to champion potential and build a green economy

Damien Carde, Head of Frequent Borrower Group DCM, NatWest, said: “We’re proud to have been able to support BNG Bank with their Social Bond. This issuance highlights that investor demand for issuers with a strong credit and a powerful sustainability strategy remains robust. This issuance also reflects NatWest’s purpose to champion potential and help in building a green economy and a more just society.”

Disclaimer

This article has been prepared for information purposes only, does not constitute an analysis of all potentially material issues and is subject to change at any time without prior notice. NatWest Markets does not undertake to update you of such changes. It is indicative only and is not binding. Other than as indicated, this article has been prepared on the basis of publicly available information believed to be reliable but no representation, warranty, undertaking or assurance of any kind, express or implied, is made as to the adequacy, accuracy, completeness or reasonableness of the information contained in this article, nor does NatWest Markets accept any obligation to any recipient to update or correct any information contained herein. Views expressed herein are not intended to be and should not be viewed as advice or as a personal recommendation. The views expressed herein may not be objective or independent of the interests of the authors or other NatWest Markets trading desks, who may be active participants in the markets, investments or strategies referred to in this article. NatWest Markets will not act and has not acted as your legal, tax, regulatory, accounting or investment adviser; nor does NatWest Markets owe any fiduciary duties to you in connection with this, and/or any related transaction and no reliance may be placed on NatWest Markets for investment advice or recommendations of any sort. You should make your own independent evaluation of the relevance and adequacy of the information contained in this article and any issues that are of concern to you.

This article does not constitute an offer to buy or sell, or a solicitation of an offer to buy or sell any investment, nor does it constitute an offer to provide any products or services that are capable of acceptance to form a contract. NatWest Markets and each of its respective affiliates accepts no liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this material or reliance on the information contained herein. However this shall not restrict, exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not be lawfully disclaimed.

NatWest Markets Plc. Incorporated and registered in Scotland No. 90312 with limited liability. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. NatWest Markets N.V. is incorporated with limited liability in the Netherlands, authorised and regulated by De Nederlandsche Bank and the Autoriteit Financiële Markten. It has its seat at Amsterdam, the Netherlands, and is registered in the Commercial Register under number 33002587. Registered Office: Claude Debussylaan 94, Amsterdam, the Netherlands. Branch Reg No. in England BR001029. NatWest Markets Plc is, in certain jurisdictions, an authorised agent of NatWest Markets N.V. and NatWest Markets N.V. is, in certain jurisdictions, an authorised agent of NatWest Markets Plc. NatWest Markets Securities Japan Limited [Kanto Financial Bureau (Kin-sho) No. 202] is authorised and regulated by the Japan Financial Services Agency. Securities business in the United States is conducted through NatWest Markets Securities Inc., a FINRA registered broker-dealer (http://www.finra.org), a SIPC member (www.sipc.org) and a wholly owned indirect subsidiary of NatWest Markets Plc.

Copyright 2023 © NatWest Markets Plc. All rights reserved.

Related articles

NatWest supports financing of Benelux mobility network

With a fleet of 856 buses and 1,246 minibuses operating from 57 strategically located depots, Hansea is a large Belgian public transport infrastructure operator – providing public, school, staff and coach services.

NatWest helps fund INEOS Enterprises’ acquisition of US chlorine specialist ASHTA

Formed in 2001, INEOS Enterprises is a UK-headquartered producer of specialty and intermediate chemicals with 25 manufacturing plants across Europe, North America, and Asia.

Funding visual effects and animation provider DNEG for further growth

Double Negative Limited sought to refinance its existing bank facilities through a bank club syndication and chose appoint NatWest to support in it.