Successful launch of sustainability bond by BNG Bank!
BNG Bank is reinventing itself as a force in sustainable issuances thanks to the successful launch of a 12-year sustainability bond under their renewed sustainability framework. Natixis acted as joint bookrunner for this inaugural issuance under the SDG (Sustainable Development Goals) Bond Framework for Dutch Municipalities.
BNG Bank provides municipalities with financial support working on behalf of and for the Dutch Public Sector. The bank and its lending are driven by social impact rather than by maximizing profits.
This transaction was announced nearly one week ahead of the trade on April 6th in order to hold a meaningful dialogue with the investor community. This consisted of numerous one-to-one meetings and a virtual event that provided ample information on the changes to this framework. This was extremely well received by the investor community that saw BNG take the initiative to implement constructive changes, making it more comprehensive and impactful in facing green and social challenges.
The transaction on April 12th spoke for itself, with demand peaking in excess of € 3.5bn, allowing the issuer to price a significant size of € 2bn for its largest sustainability bond ever. This was despite tightening the price by 3 bps from guidance to finish at mid swap -3 bps. Under the shared scoring of the joint lead managers, there was an approximately a 75% share of orders from what were deemed “sustainable” investors.
With this issuance, the issuer has raised more than € 11bn in sustainable bonds, which will only increase as they shift this format to account for roughly 20-25% of funding, versus 10-12% previously.