Netherlands Nederlandse Waterschapsbank (NWB) · PDF fileNederlandse Waterschapsbank (NWB) is...
2
Netherlands 200 EuroWeek Financing supranationals and agencies Nederlandse Waterschapsbank (NWB) Rating Aaa, AAA, NR Tom Meuwissen General manager, treasury Bouke den Hoed Deputy head, treasury KEY OFFICIALS Nederlandse Waterschapsbank (NWB) is a leading financial services provider for the public sector in the Netherlands. The bank arranges short-term and long-term loans for municipal authorities, provinces, public housing, healthcare, educational institutions and activities in the field of water and the environment. Since the bank was founded in 1954, its shares have been held by public authorities. OVERVIEW Minimum size: €10m / $10m / ¥500m Structures: all interest and currency-based Currencies: all PRIVATE PLACEMENT POLICY Risk weighting (Basel II): 20% / 14% Guarantee: No explicit state guarantee RISK WEIGHTING / GUARANTEE Source: Markit bp 3-Aug-2009 3-Sep-2009 3-Oct-2009 3-Nov-2009 3-Dec-2009 3-Jan-2010 3-Feb-2010 3-Mar-2010 3-Apr-2010 3-May-2010 3-Jun-2010 3-Jul-2010 3-Aug-2010 3-Sep-2010 3-Oct-2010 3-Nov-2010 3-Dec-2010 3-Jan-2011 3-Feb-2011 3-Mar-2011 0 5 10 15 20 25 30 35 40 45 ASSET SWAP SPREAD 3.375% EU1BN JAN 2016 Source: NWB Dutch state 17% Local authorities 83% OWNERSHIP STRUCTURE Source: NWB € bn 0 1 2 3 4 5 6 7 8 9 10 2005 2006 2007 2008 2009 2010 GROSS BOND ISSUANCE Data at December 31, 2010. Source: NWB € bn 0 1 2 3 4 5 6 7 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022+ OUTSTANDING ISSUANCE BY MATURITY Benchmark MTN Private placement Schuldschein NSV ISSUANCE METHODS Standard & Poor’s AAA, stable outlook Strengths • Implicit support from the Dutch Ministry of Finance • Focus on low-risk Dutch public sector lending, and excellent credit record • Extremely strong capital base • Low cost base and good efficiency Weaknesses • Limited diversification of income sources • Only modest underlying profitability due to low interest margins, and some volatility arising in fair- value movements • Possible constraints arising in high leverage, despite low-risk exposures The stable outlook reflects S&P’s expectation that NWB’s ownership structure and its implicit support from the Dutch ministry of finance will remain unchanged. The outlook also reflects the expectation that NWB will maintain its strategic focus on the Dutch public sector, robust domestic market position and client franchise, excellent credit record, and strong capitalisation. A negative rating action could result from a reassessment of NWB’s public policy role in the Netherlands and the level of support provided by the state, negative rating action on the ratings on the Dutch government, or a weakening of NWB’s stand- alone credit profile. KEY RECENT RATING AGENCY COMMENTARY
Transcript of Netherlands Nederlandse Waterschapsbank (NWB) · PDF fileNederlandse Waterschapsbank (NWB) is...
Netherlands
200 EuroWeek Financing supranationals and agencies
Nederlandse Waterschapsbank (NWB)Rating Aaa, AAA, NR
Tom Meuwissen General manager, treasury
Bouke den Hoed Deputy head, treasury
Key officials
Nederlandse Waterschapsbank (NWB) is a leading financial services provider for the public sector in the Netherlands.
The bank arranges short-term and long-term loans for municipal authorities, provinces, public housing, healthcare, educational institutions and activities in the field of water and the environment.
Since the bank was founded in 1954, its shares have been held by public authorities.
overview
Minimum size: €10m / $10m / ¥500m
structures: all interest and currency-based
currencies: all
privaTe placeMenT policy
risk weighting (Basel ii): 20% / 14%
Guarantee: No explicit state guarantee
risK weiGHTinG / GuaranTee
Source: Markit
bp
3-Au
g-200
9
3-Se
p-200
9
3-Oct-
2009
3-Nov
-200
9
3-Dec
-200
9
3-Jan
-201
0
3-Fe
b-201
0
3-Mar-
2010
3-Ap
r-201
0
3-May
-201
0
3-Ju
n-201
0
3-Ju
l-201
0
3-Au
g-201
0
3-Se
p-201
0
3-Oct-
2010
3-Nov
-201
0
3-Dec
-201
0
3-Jan
-201
1
3-Fe
b-201
1
3-Mar-
2011
0 5
10 15 20 25 30 35 40 45
asseT swap spread3.375% eu1Bn Jan 2016
Source: NWB
Dutch state 17%
Local authorities
83%
ownersHip sTrucTure
Source: NWB
€ bn
0 1 2 3 4 5 6 7 8 9
10
2005
2006
2007
2008
2009
2010
Gross Bond issuance
Data at December 31, 2010. Source: NWB
€ bn
0
1
2
3
4
5
6
7
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
+
ouTsTandinG issuance By MaTuriTy
BenchmarkMTnprivate placementschuldschein nsv
issuance MeTHods
standard & poor’s
AAA, stable outlook
strengths•ImplicitsupportfromtheDutchMinistryofFinance•Focusonlow-riskDutchpublicsectorlending,and
excellent credit record•Extremelystrongcapitalbase•Lowcostbaseandgoodefficiency
weaknesses•Limiteddiversificationofincomesources•Onlymodestunderlyingprofitabilityduetolow
interest margins, and some volatility arising in fair-value movements
•Possibleconstraintsarisinginhighleverage,despite low-risk exposures
ThestableoutlookreflectsS&P’sexpectationthatNWB’sownershipstructureanditsimplicitsupportfrom the Dutch ministry of finance will remain unchanged. The outlook also reflects the expectation that NWB will maintain its strategic focus on the Dutch public sector, robust domestic market position and client franchise, excellent credit record, and strong capitalisation.
A negative rating action could result from a reassessmentofNWB’spublicpolicyroleintheNetherlands and the level of support provided by the state, negative rating action on the ratings on the Dutchgovernment,oraweakeningofNWB’sstand-alone credit profile.
Key recenT raTinG aGency coMMenTary
Netherlands
Financing supranationals and agencies EuroWeek 201
Source: NWB
€ bn
0
31 D
ec 0
5
31 D
ec 0
6
31 D
ec 0
7
31 D
ec 0
8
31 D
ec 0
9
10
20
30
40
50
60
ToTal asseTs
Source: NWB
€ bn
0
0.2
0.4
0.6
0.8
1
1.2
1.4
31 D
ec 0
5
31 D
ec 0
6
31 D
ec 0
7
31 D
ec 0
8
31 D
ec 0
9
ToTal capiTal
Source: NWB
USD 42%
EUR 39%
GBP 3%
CHF 13%
Other 3%
issuance By currency (2009 & 2010)
Data at ***. Source: NWB
Social Housing
60% Waterboards
10%
Municipalities 20%
Healthcare 10%
ouTsTandinG loans By Type
Source: NWB
Institutions 50%
Bank 19%
Fund manager 25%
Other 6%
invesTor Base By Type (2009 & 2010)
Source: NWB
Syndicated 62%
MTN / private placement
35%
Loan 3%
issuance By Type (2009 & 2010)
pricing date January 7, 2011
value Eu1bn
Maturity date January 14, 2021
coupon 3.5%
spread to benchmark 64.2bp over Bunds
Bookrunners Credit Suisse, JPMorgan, Barclays Capital
pricing date September 1, 2010
value $1bn
Maturity date September 9, 2015
coupon 2%
spread to benchmark 62.9bp over USTs
Bookrunners JPMorgan, RBC Capital Markets, Deutsche Bank
pricing date May 27, 2010
value Eu1.5bn
Maturity date June 4, 2015
coupon 2.375%
spread to benchmark 79.7bp over Bunds
Bookrunners Credit Suisse, Deutsche Bank, BNP Paribas
Source: Dealogic
recenT deals
rank lead Manager amount $m no of issues
% share
1 Deutsche Bank 2,281 16 25.99
2 Credit Suisse 1,404 6 16
3 BNPParibas 1,023 5 11.66
4 JPMorgan 896 5 10.2
5 Barclays Capital 878 5 10.01
6RBC Capital Markets
521 2 5.94
7Zuercher Kantonalbank - ZKB
461 5 5.25
8 UBS 422 6 4.81
9 Nomura 232 5 2.64
10 RBS 230 4 2.62
subtotal 8,347 42 95.11
Total 8,776 51 100
Source: Dealogic (March 16, 2010 to March 15, 2011)
Top BooKrunners
