By Rebecca Melvin
New York, Feb. 23 – NatWest Group plc sold €1 billion of nine-year social bonds (Baa2/BBB/A) on Tuesday, according to a market source.
The notes priced at 99.992 with an initial coupon of 0.78% and 90 basis points spread over mid-swaps.
The notes are callable after eight years at par. If the bonds are not redeemed at that time, the rate will reset to three-month Euribor plus 94.9 bps.
NatWest Markets was global coordinator, GSS structuring adviser and joint bookrunner together with ABN Amro, ING, Natixis and UniCredit also as joint bookrunners.
CaixaBank, Danske Bank, Helaba, IMI-Intesa, Sanpaolo and Rabobank were joint lead managers.
The proceeds of the bonds will be used to finance new or existing affordable housing lending as described in the issuer’s green, social and sustainability bond framework.
The majority state-owned British banking and insurance holding company is based in Edinburgh.
| Issuer: | NatWest Group plc
|
| Amount: | €1 billion
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| Maturity: | Feb. 26, 2030
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| Description: | Social bonds
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| Bookrunners: | NatWest Markets, ABN Amro, ING, Natixis and UniCredit
|
| Lead managers: | CaixaBank, Danske Bank, Helaba, IMI-Intesa, Sanpaolo and Rabobank
|
| Coupon: | 0.78% initially
|
| Rate reset: | Euribor plus 94.9 bps
|
| Price: | 99.992
|
| Spread: | Mid-swaps plus 90 bps
|
| Calls: | Yes, on Feb. 26, 2029
|
| Trade date: | Feb. 23
|
| Settlement date: | Feb. 26
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: A
|
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