Case study

NatWest helps BNG launch 2023 funding year

09 Jan 2023 . 3 min read

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.

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.”

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