Friesland Bank N.V., one of the leading Dutch regional banks, today priced its Eleven Cities No.3 transaction, a EUR 934 million RMBS transaction, through joint-lead managers ABN AMRO and Fortis Bank.
Supported by record investor attendance during a five day European road show, the transaction attracted very strong interest across the capital structure, with all tranches heavily oversubscribed and the books going subject on the day of opening.
The deal was priced as follows:
Class Size Coupon Average Life Rating
A1 EUR 230.0mln 3m Euribor + 5bps 1.4 years Aaa/AAA
A2* EUR 644.0mln 3m Euribor + 9bps 6.1 years Aaa/AAA
B EUR 18.6mln 3m Euribor + 15bps 7.0 years Aa2/AA
C EUR 18.5mln 3m Euribor + 27bps 7.0 years A1/A
D EUR 8.4mln 3m Euribor + 39bps 7.0 years Baa1/A-
E EUR 5.5mln 3m Euribor + 50bps 7.0 years Baa3/BBB+
F EUR 9.25mln 3m Euribor + 75bps 1.5 years NR/BBB-
* Partially retained by Friesland Bank for balance sheet management purposes
Demand was high across the whole capital structure, thanks to the high quality of the collateral and the solid transaction structure, offering a non-amortising cash reserve fully funded at Closing. This was also reflected in the investment grade rating from Fitch achieved on the subordinated note.
The transaction also benefited from the relative scarcity of Dutch RMBS paper, as well as the good historical performance of existing Dutch transactions, especially the strong performance of Eleven Cities No. 1 and Eleven Cities No. 2, the two previous securitisations of mortgage loans originated by Friesland Bank.
Thanks to the experience of the originator in the ABS market, and the robust transaction structure, the transaction was structured and brought to market in just eight weeks time, enabling Friesland Bank to hit the market at the right time, and making the most of the favourable price environment.
Ernst Vasbinder, Treasurer of Friesland Bank, said: "Thanks to the good cooperation between ABN AMRO and Fortis we are able to fulfil our funding requirements in a very efficient way through this successful transaction. Apart from this, Friesland Bank was able to present itself as a reliable regional bank in the North of the Netherlands to the European RMBS investment community."
Ben Metcalf, Global Head of ABS Syndicate at ABN AMRO, said: "The investor response to Friesland Bank's 3rd RMBS transaction has been very impressive, with over 40 investors from across Europe resulting in oversubscription across the capital structure. We are extremely proud of the pricing levels achieved by this transaction."
Martine Klutz, Head Syndicate ABS CDO at Fortis, said: "Such a high quality and well diversified orderbook, both in terms of the type of investors and their geography, demonstrates the strong investor appetite for prime Dutch RMBS such as in Friesland Bank's Stichting Eleven Cities No 3. A print at +9bp for the A2 tranche is a fantastic achievement as the +10bps barrier had not been crossed since 2005 for such WAL."
Fortis is an international financial services provider engaged in banking and insurance. We offer our personal, business and institutional customers a comprehensive package of products and services through our own channels, in collaboration with intermediaries and through other distribution partners.
With a market capitalisation of EUR 40.3 billion (31/05/2007), Fortis ranks among the twenty largest financial institutions in Europe. Our sound solvency position, our presence in 50 countries and our dedicated, professional workforce of 60,000 enable us to combine global strength with local flexibility and provide our clients with optimum support. More information is available on www.fortis.com
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