Dutch covered bond supply set for expansion
The Dutch covered bond market could be poised to expand, after the Finance Ministry published draft proposals that would allow lower rated borrowers to issue bonds and set up programmes backed by small- to medium-sized enterprises. The news comes as NIBC Bank prepares for the return of its conditional pass-through structure, and amid talk that other Dutch issuers are now considering setting up such programmes.
The Dutch Ministry of Finance is consulting on the new proposals amending its covered bond law until April 11. The law is expected to come into effect in January 2015.
The law proposes to abandon the AA-/Aa3 minimum covered bond rating threshold which bars issuance of bonds below ...Already a subscriber? Login