Nederlandse Waterschapsbank, a Dutch water board funding authority, has entered a foreign exchange and interest rate swap on a recent six-year USD1 billion bond offering. Tom Meuwissen, head of the treasury in the Hague, said it is the authority's policy to convert all foreign currency liabilities back into euros.
In the swap, the authority pays a euro floating-rate below three-month EURIBOR and receives the 3.5% coupon on the bond. The maturity of the swap matches that of the bonds. ABN AMRO, Citigroup and Credit Suisse First Boston are the swap counterparties and the bookrunners of the deal.
