Dealflow | June 5, 2017

Dutch bank launches €2 billion bond to tackle affordable housing shortage

The team at


An “Affordable Housing Bond” from Dutch public bank Nederlandse Waterschapbank is the second €1 billion-plus (+$1.1 billion) social housing bond to launch in the past year (paywall).

Dutch cities, like many urban hubs worldwide, are grappling with a shortage of affordable housing; there is reportedly a 10-year wait for rent-controlled homes in Amsterdam.

Nederlandse Waterschapbank’s bond will be split between a €1.5 billion ($1.7 billion) seven-year tranche and a €500 million ($560 million) 15-year tranche. Coupons are small: 0.25 percent and 1.25 percent respectively.

So far, the bond has attracted Credit Agricole, AP2, and Robeco Investment Management. Last July, Dutch municipal bank BNG Bank issued a €1 billion bond for social housing.