NN Bank is readying an inaugural Eu500m conditional pass-through (CPT) covered bond, which is set to follow a roadshow that will commence next week, after having established a new Eu5bn covered bond programme and announced a mandate today (Thursday).

Nationale-Nederlanden Bank (NN Bank) announced this morning that it had mandated ABN Amro, BNP Paribas, LBBW and Rabobank to arrange a roadshow from next Monday to Friday, after which a Eu500m no-grow covered bond issue with an intermediate maturity will follow, subject to market conditions.

NN Bank’s covered bonds are expected to be rated AAA by S&P, which rates the issuer A.

The Dutch bank announced yesterday (Wednesday) afternoon that its new mortgage-backed programme has received regulatory approval from De Nederlandsche Bank (DNB) and the prospectus, dated 20 September, has been approved by the Netherlands Authority for the Financial Markets (AFM).

“The NN Bank covered bond programme increases the bank’s flexibility to address its ongoing funding needs by further diversifying its sources of funding, which currently include RMBS secured wholesale funding and retail deposits,” the bank said in a statement.

NN Bank had joined the Covered Bond Label, joining all existing Dutch covered bond issuers in signing up to the initiative.

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. It also has a senior unsecured debt issuance programme.

The possibility of NN Bank joining the covered bond market was raised in May when the bank established a covered bond company, as is typical in the Dutch market.

NN Bank is a subsidiary of NN Group, the insurance and asset management company that was spun off by ING in 2014.