Published on December 2sd 2022.
MeDirect optimises its structural funding in the new rates environment - Successful closing of Bastion 2022-1 NHG RMBS
On 29th of November, MeDirect Bank closed Bastion 2022-1 NHG, its third Dutch Residential Mortgage-Backed Securities transaction backed by a portfolio of Dutch prime NHG mortgage loans in a transaction arranged by ABN AMRO alongside joint lead manager Rabobank. €369m of the Class A1 notes were preplaced in the institutional market. The €108m A2 notes are retained, which create a contingency funding source for MeDirect. The innovative capital structure with a mix of floating and fixed notes allowed to optimise funding of MeDirect in the new interest rate environment.
This transaction proves the resilience of MeDirect’s securitisation programme and trust of the capital markets. It was the first and only Dutch Prime RMBS in the second half of 2022, placed in a difficult and uncertain market caused by the effects of the war in Ukraine.
The Class A1 notes were placed at an attractive discount margin and are rated AAA (DBRS) and AAA (Fitch).