Funding strategy
Everything we do revolves around making social impact. Instead of maximising profits, our priority is to maximise the social impact of our activities. We aim to be the go-to partner for our clients in the Dutch public domain by helping them addressing the social challenges. We want to be successful at delivering and demonstrating our social impact.
BNG Bank's specialized financial services help to minimize the cost of social provisions to the public. In this regard, the bank plays an essential role in the public sector.
BNG Bank’s funding program is long-term and diversified in its approach to the international capital markets. Investors can rely on a trusted partner with an excellent credit profile that offers a steady return.
Leading Dutch SSA issuer
Since the establishment in 1914, we have focused on providing funds to the public domain at competitive terms and conditions and for all maturities, to enable social impact irrespective of the situation on the financial market.
- Largest Dutch bond issuer: BNG Bank is the largest Dutch bond issuer after the central government, and is the leading SSA issuer (sub-sovereign, supranational, agency) in the Netherlands.
- Focus on local authorities and the public sector: BNG Bank exclusively provides loans to local authorities and public sector institutions within the country.
- Customised financial services: We provide customised financial services, ranging from loans and advances, payment services and electronic banking. BNG Bank also participates in public-private partnerships.
- Free of credit risk: By far the greatest part of the bank's lending is free of credit risk because the loans are granted to or guaranteed by public authorities. In this way, the bank plays an essential role in the public sector. The Dutch central bank has designated BNG Bank as a bank of national systemic importance.
Active player in international capital markets
With over a century of experience, BNG Bank is an active player in the international capital markets. The funding policy has the long-term strategic goal of maintaining a competitive position in the market. We bring a high level of dedication to the capital markets by issuing bonds periodically in different sizes, currencies and maturities. We aim to respond to the needs of investors where possible and stay keen in our understanding of market demands.
The financial relationship between the central and local government in the Netherlands is structured in such a way, that the credit quality of the local government is -in line with the central government- extremely high. Loans to housing associations and (in many occasions) healthcare institutions are secured by guarantee funds that are ultimately backed by the Dutch government. As a result over 90% of all BNG Bank’s loans and advances are 0% risk weighted.
Annual long term funding
| Size | EUR 15-20 bn |
| Strategic funding |
Benchmark yield curves in EUR and USD (transaction size 1 bn+) |
| Public deal |
Regular presence in public markets (AUD, GBP, CHF, CAD, NOK, SEK, NZD, JPY, among others) |
| Private placements |
MTN format and loan format |
| ESG issuance |
Sustainable bonds and social bonds |
| Issuance programmes |
see dedicated page |
| Repo eligible |
ECB, FED NY, SNB, RBA, RBNZ |
| LCR HQLA | EU level 1, Switserland level 2a |
| PSPP ECB | Eligible |
Triple A-ratings
The Netherlands is known for its excellent credit rating.
- BNG Bank is 100% owned by the (local) government and the probability of support by the Dutch government in an event of stress is extremely high.
- BNG Bank’s long-term loan portfolio is for more than 90% fully guaranteed. As a result, the creditworthiness of BNG Bank is equal to the Dutch state.
- All three major global credit rating agencies (Moody’s, Fitch, S&P) have rated BNG Bank with their highest long- and short-term credit ratings.
Ratings
| Moody's | S&P | Fitch | |
| Long term debt ratings | Aaa | AAA | AAA |
| Outlook | stable | stable | stable |
| Short term debt ratings |
P-1 | A-1+ | F1+ |