De Volksbank issues € 500 million of green senior non-preferred notes
On 26 April 2022, de Volksbank successfully issued € 500 million of senior non-preferred (SNP) notes. The notes have a term of 5 years (non-call 4 years) and a coupon of 2.375%. It is de Volksbank’s third issuance of SNP notes, following two issuances of € 500 million in 2021.
The issuance is in line with de Volksbank’s capital planning, which starts from the assumption that the minimum non risk-weighted MREL requirement must be fully composed of CET1 capital and subordinated liabilities (Tier 1 capital, Tier 2 capital and SNP notes) as from 1 January 2024, while taking into account the binding intermediate requirement as from 1 January 2022. Based on our capital position as at year-end 2021, we indicated to expect to issue SNP notes totalling € 1.2 billion to € 1.7 billion up to 2024.
The SNP notes were issued under de Volksbank’s Green Bond Framework 2021, which is aligned with the EU Taxonomy. For more information on our Green Bond Framework, please refer to our website.
The green SNP notes will be listed on the Luxembourg Stock Exchange.
| Facts of the issue | |
| Issue size | € 500 million |
| ISIN | XS2475502832 |
| Issue price | 99.834% |
| Coupon | 2.375% |
| Settlement date | 4 May 2022 |
| Format | Optional redemption date: 4 May 2026 |
| Expected ratings | Baa2 (Moody’s) / A- (Fitch) |
