20.11.2003 – 14:59
NIB Capital Bank is the first Dutch bank to securitise EUR 1 bn Residential Mortgage Loans under KfW's PROVIDE platform
NIB Capital Bank N.V. and KfW are to conclude the first securitisation of Dutch residential mortgage loans via KfW's securitisation platform PROVIDE (Provide Orange 2003-1). The transaction also constitutes the first public synthetic securitisation of residential mortgage loans in the Netherlands.
In the transaction NIB Capital Bank will transfer the credit risk of the mortgage loan portfolio to KfW, who subsequently passes on this risk to institutional investors via the issuance of securities ('credit default swaps' and 'credit linked notes') that have been rated by S&P, Moody's and Fitch. The securitised portfolio comprises 6.382 individual loans with an aggregate volume of EUR 1 billion. NIB Capital Bank has acted as sole arranger and lead manager and has placed the securities with 20 investors in 8 countries, with a majority of the demand coming from German investors.
With its platforms for the securitisation of SME loans (PROMISE) and residential mortgage loans (PROVIDE) KfW gives European credit institutions the opportunity to transfer credit risks under a highly standardised scheme. The capital relief thus achieved creates room for these institutions to grant new loans. Additionally, KfW is making an essential contribution to the development of trading in risks resulting from SME and residential mortgage loans. Provide Orange 2003-1 is KfW's third securitisation transaction with a European bank. KfW makes its both platforms available as to suitable institutions in other European countries, which further increases the liquidity of the platforms. In addition, the platforms could contribute to compensating for the fragmentation of the European securitisation market, which has resulted from the various national legal systems.
NIB Capital Bank has been one of the leading institutions in the Dutch securitisation market and most regular issuer of mortgage backed securities under its 1997 established Dutch MBS programme. Provide Orange 2003-1 constitutes the bank's 15th mortgage backed securitisation and 3rd synthetic securitisation. Recent transactions arranged and lead managed by NIB Capital Bank include:
Dutch MBS XI BV(EUR 1 billion RMBS) Stichting Eleven Cities No 2. (EUR 500 million RMBS for Friesland Bank NV) North Westerly CLO I (EUR 367.5 million arbitrage CLO) Sigurd No. 1 (EUR 500 million arbitrage CSO) Latitude Synthetic I (USD 663 million synthetic securitisation of shipping loans) Swafe 1 BV (EUR 900 million RMBS for Zwitserleven (Swiss Life)
The prices for the credit linked notes to be issued by Provide Orange 2003-1 BV were fixed on November 19th, 2003.
Class Nominal amount Ratings Interest
(in EUR) (Moody's/S&P/Fitch)
A 50.000.000 Aaa/AAA/AAA 3-M-EURIBOR + 33 bp
B 35.500.000 Aa2/AA/AA 3-M-EURIBOR + 60 bp
C 13.500.000 A2/A 3-M-EURIBOR + 80 bp
D 14.500.000 Baa2/BBB/BBB 3-M-EURIBOR + 175 bp
E 11.000.000 Ba2/BB/BB 3-M-EURIBOR + 625 bp
F 8.500.000 Ba2/BB/BB 3-M-EURIBOR + 350 bp
ots Original Text Service: KfW Internet: http://www.presseportal.de
For further information please contact:
NIB Capital Bank: Hans Rijnberg, Tel. + 31 70 342-5905 firstname.lastname@example.org
KfW Group: Nathalie Drücke, Tel.: + 49 (0)69 7431-2098 email@example.com
Original content of: KfW, transmitted by news aktuell