De Volksbank issues € 500 million of green subordinated Tier 2 notes
On 20 November 2024, de Volksbank successfully issued € 500 million of green subordinated Tier 2 notes. The notes have a coupon of 4.125% and a term of 11 years, with an option to call after 6 years.
The issuance is in line with de Volksbank’s capital planning, which is based on meeting the MREL requirements as from January 2024 with subordinated instruments, i.e. Tier 1 capital, Tier 2 capital and SNP notes with a residual contractual maturity of at least one year.
The Tier 2 notes were issued under de Volksbank’s Green Bond Framework, which has been assessed against the EU Taxonomy as of September 2023 by ISS-ESG. For more information on our Green Bond Framework, please refer to our website.
The green subordinated Tier 2 notes will be listed on the Luxembourg Stock Exchange.
Facts of the issue
| Issue size | € 500 million |
| ISIN | XS2948048462 |
| Issue price | 99.677% |
| Coupon | 4.125% |
| Settlement date | 27 November 2024 |
| Format | 11 year Non-Call 6 year Tier 2 |
| Coupon reset | prevailing 5-year EUR mid-swap rate +190bps, if not called |
| Expected ratings | Baa2 (Moody’s) / BBB (Fitch) |
