Funding strategy

BNG has more than a century of experience as a public sector bank. BNG is a well-known name in the money and capital markets thanks to its long-standing presence in both markets and its global investor relations.   

Investing in a stable institution

Thanks to our long-term nature and excellent AAA credit ratings, we offer investors the opportunity to invest in a stable and secure institution. BNG bonds in various currencies and formats offer the opportunity to invest with us in the Dutch local public sector. Through the stable and frequent issuance of BNG bonds, we reduce the cost of social services, enabling local authorities and other public organisations to make optimal use of their budgets. Together, we tackle the biggest social challenges, such as building affordable housing and constructing sustainable infrastructure.  

Our funding strategy in short 

Annual long-term funding requirement  

  • EUR 15-20 billion

Strategic funding  

  • Maintaining benchmark curves in EUR and USD  
  • Regular issuance of liquid transactions (size 1 billion+)  

ESG bonds through our Sustainable Finance Framework

  • Sustainability bonds for Dutch municipalities
  • Social bonds for Dutch social housing associations 

 Public issues

  • Regular presence in public markets
  • AUD, GBP, CHF, CAD, CNY, HKD, among others 

Private placements

  • MTN format and loan format
  • Plain vanilla and simple structures 

Triple A-ratings 

The Netherlands is known for its excellent credit rating. 

  • BNG is wholly owned by the (local) government and, in the event of financial stress, the likelihood of support from the Dutch government is very high.  

  • More than 90% of our long-term loan portfolio is fully guaranteed. This is one of the reasons why our creditworthiness is equal to that of the Dutch State.  

  • All three major global credit rating agencies (Moody's, Fitch, S&P) have awarded BNG their highest credit ratings for both the long and short term. 

 

 
Long-term credit ratings 
Moody's
 Aaa 
S&P
AAA  
Fitch
 AAA 
 
Outlook 
Moody's
stable 
S&P
stable 
Fitch
stable 
 
Short-term credit ratings 
Moody's
P-1 
S&P
A-1+  
Fitch
 F1+ 
 Download our Investor Presentation (pdf)

From bonds to customised solutions: our impact in the public sector  

Since BNG was founded in 1914, our focus has been on providing financing to the Dutch public sector. We do so on competitive terms and for all maturities. By doing so, we enable social impact, regardless of the situation on the financial markets. With more than a century of experience, we are a reliable player on the (inter)national capital markets. Our long-term funding policy is aimed at maintaining a strong competitive position in the market. By periodically issuing bonds in various sizes, currencies and maturities, we continue to respond proactively to market needs and anticipate the wishes of investors. 

 

We are the largest Dutch public bond issuer after the Dutch government and therefore the leading issuer of bonds in the SSA sector (sub-sovereign, supranational, agency) in the Netherlands.

 

 

BNG is known worldwide as a reliable and stable issuer with a very high credit rating and a long history. This gives BNG broad and deep access to the international money and capital markets in both good and bad market conditions.

We focus on providing loans to local authorities and public sector institutions in the Netherlands. We are restricted in our lending activities by our articles of association.

We offer customised financial services. These range from loans and advances to payment services and electronic banking. We also participate in public-private partnerships.

BNG is a promotional bank, which means that at least 90% of the loans we provide are directly or indirectly guaranteed by the government. We promote public sector policy objectives by providing promotional loans on a not-for-profit basis.

BNG maintains an additional buffer because the Dutch central bank has designated BNG as a bank of national systemic importance.

Financier and knowledge partner 

The Dutch government holds half of BNG's share capital. The other half is owned by municipalities, provinces and a water authority. Our clients are local authorities, public companies, healthcare institutions, educational institutions and housing associations. As a financier and knowledge partner, we help them tackle social challenges in areas such as the energy transition, sustainable and affordable housing, and social real estate. This way, we help create a more social and greener Netherlands. 

 

Asset quality  

In the Netherlands, the credit quality of local governments is very high. This is in line with the credit quality of the central government. There are guarantee funds for loans to housing associations and healthcare institutions. These are supported by the Dutch government. As a promotional lender, more than 90% of our loans and advances have a risk weighting of 0%. 

Annual long-term funding 
Size 
EUR 15-20 bn 
Term 
1 to 30 years 
Strategic funding 
Benchmark yield curves in EUR and USD (transaction size 1 bn+) 
Public deals 
Regular presence in public markets (AUD, GBP, CHF, CAD, CNY, HKD, NOK, SEK, JPY, among others) 
Private placements 
MTN-format and loan format 
ESG issuance 
Sustainability bonds and social bonds 
Documentation 
Debt Issuance Programme EUR 110 bn. (with a passport to 15 European countries)  Kangaroo/Kauri Programme AUD 15 bn.   Namensschuldverschreibung  
Repo eligible 
 ECB, FED NY, SNB, RBA, RBNZ 
LCR HQLA 
EU level 1, Switzerland level 2a 
PSPP ECB 
Eligible 
 

Short-term funding on the money markets 

BNG is also active on the international money markets. The money markets are the part of the financial markets where financial instruments with a maturity of less than one year are traded. This type of financing is essential for ensuring liquidity and meeting daily operational needs. By using the money markets, BNG can manage its liquid assets quickly and efficiently, which contributes to financial stability and flexibility.

BNG uses two commercial paper programmes for short-term financing on the money markets. 

 
 
Size 
Euro-Commercial Paper (ECP Programme 
EUR 20 bn 
US Commercial Paper (USCP) Programme 
USD 20 bn 
 
Currency 
Euro-Commercial Paper (ECP Programme 
Multiple currencies, including EUR, USD, GBP, CHF, AUD, HKD 
US Commercial Paper (USCP) Programme 
USD 
 
Term 
Euro-Commercial Paper (ECP Programme 
Up to 1 year 
US Commercial Paper (USCP) Programme 
Up to 1 year 
 
Dealers 
Euro-Commercial Paper (ECP Programme 
Barclays, BoA ML, Citigroup, ING, NatWest, Rabobank, UBS 
US Commercial Paper (USCP) Programme 
Barclays, Goldman Sachs, JP Morgan 
 
Rating 
Euro-Commercial Paper (ECP Programme 
A-1+/P-1/F1+ 
US Commercial Paper (USCP) Programme 
A-1+/P-1 
 

In addition, we offer professional counterparties the option of placing direct deposits in various currencies with a maximum term of one year. This is subject to completion of the full CDD and onboarding process. Please contact the money market department directly for more information.  

BNG | Bank of added value - Funding strategy