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Germany
136 EuroWeek Financing supranationals and agencies
Minimum size: no outright minimum, but €10m or above preferred
Maturity: flexible
Structures: plain vanilla plus range of structures
Currencies: EUR, USD, CHF — others dependent on cross-currency swap
Private PlaCeMent PoliCy
RATING Aa1, AA-, AAA
€ bn
Debt issuance (2005-10)
* ForecastSource: NRW.Bank
2005
2006
2007
2008
2009
2010
*0
10
20
30
€ bn
Debt maturity profile
Source: NRW.Bank (approximate figures as at March 24, 2010)
2010
2011
2012
2013
2014
2015
0
4
8
12
16
20
€ bn
Total assets
Source: NRW.Bank
2004
2005
2006
2007
2008
2009
0
50
100
150
200
Issuance by currency (2009)
EUR
USD
Other
Source: NRW.Bank
19%
4%
77%
Investor base by region
Germany
Europeex-Germany
Asia
Other
Source: NRW.Bank (estimated values)
50%
25%
20%
5%
Issuance by type (2009)
Benchmark
DIP
Domestic (SSD& bearer bonds)
Source: NRW.Bank
26%
44%
30%
Debt iSSuanCe (2005-10)
Debt Maturity Profile
total aSSetS
iSSuanCe by CurrenCy (2009)
inveStor baSe by region
iSSuanCe by tyPe (2009)
NRW.Bank
Dietmar P binkowskaChairman of the managing board
Klaus rupprath Head of capital markets
risk weighting (basel ii): 0%
guarantee: Direct/explicit guarantee from owners, the state of North Rhine Westphalia.
NRW.Bank is 98.6% directly owned by the State of North Rhine-Westphalia. The remaining 1.4% is held by the two North Rhine-Westphalian municipalities of the Rhineland and Westphalia-Lippe.
Key offiCialS
riSK weighting / guarantee ownerShiP StruCture
NRW.Bank is the state development bank of North-Rhine Westphalia. In August 2002, Westdeutsche Landesbank Girozentrale was split up into West LB AG, which continues the activities of a competition-exposed bank, and Landesbank NRW, which is responsible for economic and structural development under a public mission.
overview
136-137 NRW.BANK.indd 136 06/05/2010 13:29
Germany
Financing supranationals and agencies EuroWeek 137
Standard & Poor’s
AA-, stable outlook
Strengths• Strong support mechanism from the State of North Rhine-Westphalia• Strong liquidity and low, state-supported funding costs• Limited credit risk, owing to a large proportion of public-sector lending• Strong capitalisation
weaknesses• The business model’s dependence on public policy role and state support• Increased market risks in the structured investment portfolio• Only modest profitability
The stable outlook on NRW.Bank reflects that on NRW because Standard & Poor’s believes that the guarantees and the bank’s current GRE status will be maintained in the foreseeable future. Any rating action on NRW will be reflected in a similar rating action on NRW.Bank.
Standard & Poor’s does not expect to see changes to the current support mechanism benefiting NRW.Bank, given that the bank will likely remain an integral part of the state’s economic development objectives. This expectation is consistent with the March 2002 agreement between Germany and the European Commission on future state support for German development banks.
fitch ratings
AAA, Outlook Stable, (affirmed 22 April 2009)
NRW.Bank’s ratings are based on the guarantees provided by its owners in the form of “Anstaltslast” (maintenance obligation) and “Gewaehrtraegerhaftung” (deficiency guarantee), and the explicit guarantee from the State of North Rhine-Westphalia (NRW, AAA/outlook stable), which enables it to meet its liabilities at all times. NRW.Bank is a public law institution, which is 98.6% owned by NRW and two regional associations, Landschaftsverband Rheinland and Landschaftsverband Westfalen-Lippe (0.7% each). The owners act as its joint and several liable public entities and guarantors (“Anstalts- und Gewaehrtraeger”).
Key reCent rating agenCy CoMMentary
Outstanding loan distributionPublic lending
German publicsector(Bund, states& municipals)
European publicsector(mainly centralgovernment level)
US public sector
Rest of the world(mainly centralgovernment level)
Source: NRW.Bank (as at March 24, 2010)
Total$100bn
68%
24%
4%4%
outStanDing loan DiStributionPublic lending
Source: Markit
bp
NRW Asset swap spread4.25% EUR November 2014
-20
-10
0
10
20
30
40
50
60
70
80
19 Fe
b 10
31 D
ec 0
9
31 O
ct 09
31 A
ug 0
9
30 Ju
n 09
30 A
pr 09
28 Fe
b 09
31 D
ec 0
8
31 O
ct 08
31 A
ug 0
8
30 Ju
n 08
30 A
pr 08
29 Fe
b 08
31 D
ec 07
Pos. bookrunner Parents
Deal value $ (Proceeds) (m)
no. %share
1 UniCredit Group 3,810 10 17.5
2 DZ Bank 2,643 8 12.1
3 NRW.Bank 1,924 3 8.8
4 LBBW 1,794 7 8.2
5 JPMorgan 1,766 5 8.1
6 WestLB 1,619 10 7.4
7 Morgan Stanley 1,428 13 6.6
8 HSBC 1,424 8 6.5
9 RBS 1,054 5 4.8
10 Barclays Capital 909 9 4.2Subtotal 18,370 58 84.4total 21,774 71 100.0
Source: Dealogic
toP booKrunnerS aPril 2009 – MarCh 2010
Pricing date: February 22, 2010
value: €1bn
Maturity date: March 2, 2015
offer price: 99.393
Coupon: 2.5%
Spread to benchmark: 34.4bp over Feb 2015 Bobl
bookrunners: DZ Bank, JPMorgan, NordLB,
UniCredit Group
Pricing date: January 26, 2010
value: $500m
Maturity date: February 1, 2013
Coupon: 3m Libor +25bp
bookrunners: HSBC, RBS
Pricing date: November 9, 2009
value: €2bn
Maturity date: November 16, 2011
offer price: 99.854
Coupon: 1.625%
Spread to benchmark: 45.1bp over 1.25%
Sep 2011 Schatz
bookrunners: Commerzbank, DZ Bank, HSBC,
LBBW, Natixis, RBS, UniCreditSource: Dealogic
MoSt reCent SynDiCateD DealS
equity capital 2009: €19.9bn
Core capital ratio: 11.88%
Source: NRW.Bank (as at December 31, 2009)
CaPital StruCture
Outstanding loan distributionNorth Rhine-Westphalia
Source: NRW.Bank (as at March 24, 2010)
Total $61bn
Corporates (SMEs) via housebanks
Social housing – municipal owned housing companies
Social housing – individual home owners
Loans to private individual (CO2 reduction programmes, educational financing)
Corporates (large caps)
Financial institutions (covered, senior, guaranteed bonds)
19.7%
24.6%
8.2%
18%
9.8%
19.7%
outStanDing loan DiStribution north rhine-WestPhalia
aSSet SwaP SPreaD 4.25% eu november 2014
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