NN Bank looks set to become the latest Dutch financial institution to take-up conditional pass-through covered bonds, with the establishment of NN Conditional Pass-Through Covered Bond Company BV.

The establishment of such a covered bond company is typical of preparations for Dutch programmes, in which they play a key role.

Nationale-Nederlanden Bank (NN Bank) is a subsidiary of NN Group, the insurance and asset management company that was spun off by ING in 2014. It offers residential mortgage loans in the Netherlands.

NN Bank sold a first residential mortgage-backed security (RMBS) in July 2013 and has been active since then with its Hypenn programme, issuing publicly and privately, most recently with Hypenn VI for Eu902.4m in December 2016. It also has a senior unsecured debt issuance programme.

A spokesperson for NN Group declined to comment on whether or not it has any plans regarding covered bonds, but said: “Well spotted!”

Should it launch a conditional pass-through (CPT) programme, NN Bank would join CPT pioneer NIBC as well as Aegon and Van Lanschot in issuing such covered bonds.

Photo: NN Group/Flickr