BNG Bank issues Social Bond to finance the most sustainable housing associations

6 July 2016

BNG Bank has issued an 8-year EUR 1 billion social bond among international investors to finance the most sustainable housing associations in the Netherlands. With this social bond BNG Bank is stimulating greater sustainability among its customers in the social housing sector and meeting the demand of capital providers for sustainable investments.

The sustainability of 339 housing associations is assessed using a methodology developed by Telos, the centre for sustainable development at Tilburg University. The assessment involves an examination not only of the associations' ecological characteristics, such as the energy efficiency of the houses, but also social and economic aspects such as the price/quality ratio of houses. In other words, People, Planet, Profit. The proceeds of the bond issue are lent to the 92 most sustainable housing associations. The social housing association 'De Zaligheden' in Eersel (near to Eindhoven) achieved the highest sustainability score.

'Sustainability is a crucial element in our strategy. With this social bond BNG Bank intends to increase its customers' awareness about sustainability. In addition, the bank is responding to the ever-increasing need among international capital providers for sustainable investments that also have a social impact. With this transaction, the bank broadens its investor base and, as a consequence, further improves the bank's access to international capital markets. This supports the bank's policy to be able at all times to provide affordable financing to the Dutch public sector and it broadens the tools available for housing associations to effectively pursue and monitor their sustainability policy', says Olivier Labe, member of BNG Bank's Executive Board.

BNG Bank is the first party to issue a sustainable bond specifically intended to fund the Dutch social housing sector. In 2014 and 2015, the bank issued two bonds to fund the most sustainable municipalities in the Netherlands, also applying the Telos methodology.

BNG Bank's social housing bond has an annual coupon of 0,05% and the re-offer price is 99.992%. The actual yield based on this is 0.051%. The settlement date is 13 July 2016. The bond will be listed on the Luxemburg Stock Exchange. Lead managers are Credit Agricole, Morgan Stanley and Rabobank.

See for Telos's detailed 'First framework for a BNG Bank Social Bond for Dutch Housing Associations' and further relevant information.

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