Argenta launches a first issuance of 500 million euros in Belgian mortgage bonds for professional investors

2 February 2021

Today, Argenta successfully launched a first issuance of 500 million euros in Belgian covered bonds or mortgage bonds as part of its new “covered bond” issuance program. These are bonds of which repayment is not only guaranteed by Argenta, but also by an underlying portfolio of Belgian home loans that Argenta has provided to borrowers.

Due to this double recourse, the bonds enjoy a AAA rating from Standard & Poor's. The issue price is 101,461% and the annual coupon is 0,01% for this issue with a maturity of 10 years. This gives a return of -0,135% on an annual basis.

This benchmark issue of Belgian mortgage bonds will further strengthen Argenta's name and credit story as an emerging issuer on the bond markets. It also offers Argenta the opportunity to further diversify its investor base. Moreover, this is an additional source of financing for Argenta at very interesting conditions.


On January 26, 2021, Argenta announced its intention to institutional investors to launch its first issuance of Belgian mortgage bonds. This was followed by a pan-European virtual roadshow. The joint bookrunners were Belfius, LBBW (Landesbank Baden-Württemberg), Barclays and Natixis.

The issuance was extremely well received in view of the great interest among institutional investors in Belgian mortgage bonds, where Argenta is now the 5th issuer.

At the time of announcement, the pricing guidance was Mid Swap + 9bp. The order book was over € 3.7 billion after 1 hour with more than 100 investors in nearly 20 countries. After tightening the spread to + 3bp, the order book was 1.9 billion euros with 69 investors involved.

Investors are well diversified with investors from Germany (30%), Benelux (27%), Scandinavia (18%), France (7%), Asia (7%), the United Kingdom (4%) and Southern Europe ( 4%). Asset managers were the most active investors (35%), followed by banks (32%) and central banks and governments (19%).