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Successful securitization by Argenta Spaarbank – Green Apple 2017-I-NHG
4 October 2017
Over the past ten years, Argenta has grown strongly thanks to and for its customers. Thanks to its customers because they have entrusted their savings to us more than ever and in difficult market conditions. And for its customers because Argenta has invested these savings increasingly in home loans for them. In this way, since 2009, home loan outstandings have grown by an average 8% a year, from 15 to more than 25 billion euros.
With demand for home loans currently outstripping the growth in savings, Argenta Spaarbank has issued a securitization transaction, the Green Apple 2017-I-NHG.
Through this transaction, home loans are repackaged into securities for institutional investors with the same home loans as collateral. Based on a well-diversified order book of over 1.6 billion euros, a total of 1.2 billion euro of A tranches have been placed with more than 30 institutional investors.
The collateral consists of residential loans granted by Argenta to Dutch customers and carrying the National Mortgage Guarantee (NHG) of the Dutch government. Thanks to this guarantee and the structure of the transaction, the A tranches received the top AAA rating from Fitch and Moody’s, generating lively interest among institutional investors across Europe.
With its home loans and savings and insurance products, Argenta contributes in the Netherlands to sensible banking. Argenta is a safe bank with simple, ‘no frills’ products and services. Every sensible person deserves a healthy bank.
The transaction gives Argenta further room to grow and, together with the subordinated Tier 2 issue of May 2016, provides additional funding to support our strong retail finance model.
Features of the Green Apple 2017-I-NHG issue:
– Issuer: Argenta Spaarbank nv
– Issue amount: 1.2 billion euro A-tranche notes (AAA rating)
– Duration: 05-10-2017 until March 2056 with prepayment option from March 2024
– Coupon: Euribor 3M + 40bps
– Issue Price 101.09 %
– Discount margin: 3M + 18bps
– Structuring of the transaction; ABN Amro
– Joint lead managers: ABN Amro and BNP Paribas