As part of its funding strategy, NN Bank raises secured funding. It primarily relies on the issuance of Soft Bullet covered bonds as the main secured funding source to refinance maturing securitisation debt and to finance balance sheet growth.
Soft Bullet Covered Bond Programme
In June 2020, NN Bank established a Soft Bullet Covered Bond Programme, backed by Dutch prime residential mortgage loans. This programme is used for funding purposes (capital market covered bond issuances) and liquidity purposes (retained covered bond issuances). Prior to the launch of the Soft Bullet Covered Bond Programme, NN Bank used a Conditional Pass-Through (CPT) Covered Bond Programme. Following a successful consent solicitation on 8 April 2022, all former CPT covered bonds novated to the Soft Bullet Covered Bond Programme. On 18 May 2022 the CPT Covered Bond Programme was terminated. Documentation of the CPT Programme is available on request.
HYPENN Residential Mortgage-Backed Securities (RMBS)
Part of NN Bank’s Dutch residential mortgage loan portfolio is used as collateral for the bank’s securitisation programme (“Hypenn”).