Bank Nederlandse Gemeenten, a Dutch bank that only lends to the public sector, has entered a foreign exchange and interest rate swap to convert a recent USD250 million 10-year bond into a floating-rate euro denominated liability.
In the 10-year swap, the bank pays a floating-rate based on six-month Euribor and receives the 3.75% coupon in dollars. Willem Little, senior manager in capital markets in the Hague, declined to comment on the spread but said its debt trades at LIBOR minus nine basis points. BNP Paribas and UBS are the counterparties to the swap and the bookrunners of the bond
