Achmea plans to establish a new conditional pass-through (CPT) covered bond programme this year that will be registered with the Dutch central bank, replacing a structured, unregistered programme whose last bond outstanding matures today.

In its interim 2017 results, published on Thursday, Achmea Bank announced that it aims to replace its current, unregistered covered bond programme with a DNB-registered CPT covered bond programme in the second half of this year.

“This seems to imply that the first deal could be welcomed next year,” said Joost Beaumont, senior fixed income strategist at ABN Amro.

Achmea’s original, non-registered soft bullet programme – which was set up in 2007 before Dutch covered bond legislation was in place – does not meet UCITS or CRD/CRR requirements that would make it eligible for preferential regulatory treatment. The last bond outstanding off this programme, a Sfr200m 10 year issue, matures today (Tuesday) and Fitch previously deemed the programme dormant. It was originally in the name of Achmea Hypotheekbank, which was renamed Achmea Bank in 2014 as part of a merging of Achmea entities.

The bank has also accessed wholesale markets via EMTN and RMBS programmes.

In opting to issue covered bonds with a CPT structure, Achmea follows compatriots NIBC – which pioneered the format, Aegon and Van Lanschot. NN Bank is also in the process of establishing a CPT programme.

Photo: Achmea/Twitter