SNS Bank could launch its first benchmark since 2012 as early as next month, the bank’s head of funding told The CBR, with a long dated deal likely, while he said that, contrary to speculation, the Dutch state-owned bank will use its existing programme without changing to a CPT structure.

SNS announced on Tuesday that it will as of 1 January change its name to de Volksbank, prompting some market participants to suggest this could pave the way for a subsequent return to the covered bond market. But Bart Toering, head of funding at SNS Bank, told The Covered Bond Report that its return is more imminent.

“We are going to return to the market, and we will issue first as SNS Bank and then from next year continue to issue as de Volksbank,” he said. “It could be October, markets permitting, or later this year.

“We will continue to issue from the same programme, and the rebranding will have no impact on the programme.”

Some market participants had also speculated that SNS Bank could, like fellow Dutch issuers NIBC and Van Lanschot, switch to issuing conditional pass-through (CPT) covered bonds. Toering said, however, that the issuer will not be adopting such a structure.

SNS last issued a benchmark covered bond in August 2012, a Eu1bn five year. The Dutch bank was nationalised in 2013, and Toering said it had since focussed on issuance in other markets. He said the issuer intends to return to the covered bond market to finance growth in its mortgage business.

Toering added that it will likely target a deal in the 10-15 year part of the curve, to match its assets.

Photo: Dutch finance minister Jeroen Dijsselbloem and SNS Bank CEO Maurice Oostendorp at the announcement of the de Volksbank rebrand; Credit: SNS