Funding Programme
Stichting Trustee Achmea Hypotheekbank (Trustee) was formed on 16 December 1995. This first collateral structure set up by Achmea Hypotheekbank was defined in a trust agreement, under which Achmea Hypotheekbank periodically pledges the mortgage receivables to Stichting Trustee Achmea Hypotheekbank as security for Achmea hypotheekbank’s liabilities under financing contracts such as those relating to private loans, derivatives and the secured debt issuance programme (also referred to as the ‘European Medium Term Notes’ programme). In the event of default by Achmea Hypotheekbank, the lenders can recover the debt from the pledged mortgage receivables.
Achmea Hypotheekbank set up a EUR 10 billion covered bond financing programme in early 2007. The collateral structure of this programme is based on the issue, by a specially formed company named Achmea Covered Bond Company B.V. (‘ACBC’), of a guarantee of payment by Achmea Hypotheekbank of interest and capital on the bond loans. In exchange, Achmea Hypotheekbank transfers mortgage receivables to ACBC. The value of the transferred portfolio of mortgage receivables is proportional to the nominal value of the bond loans taken up by Achmea Hypotheekbank under the programme. If a claim is made against the guarantee, ACBC will assume the management of the transferred portfolio with a view to discharging the guaranteed liabilities out of income from interest and repayment of principal. ACBC in turn has pledged the mortgage portfolio to Stichting Trustee Achmea Covered Bond Company as security for its liabilities. ACBC's managent board is formed by ATC Management B.V.; management of the Stichting Trustee Achmea Covered Bond Company is formed by ANT Trust & Corporate Services N.V.
The programme is not registered with the Dutch Central Bank (DNB).
Achmea Hypotheekbank also uses securitisation as a funding instrument and has undertaken nine securitisation transactions since 2000. In all these securitisation transactions, Achmea Hypotheekbank has assigned a fixed portfolio of mortgage receivables to a specially formed legal entity known as a ‘special purpose vehicle’ (SPV).
The names of these SPVs are Dutch Mortgage Portfolio Loans I B.V. (DMPL I B.V.), Dutch Mortgage Portfolio Loans II B.V. (DMPL II B.V.), Dutch Mortgage Portfolio Loans III B.V. (DMPL III B.V.), Dutch Mortgage Portfolio Loans IV B.V. (DMPL IV B.V.), Dutch Mortgage Portfolio Loans V B.V. (DMPL V B.V.), Dutch Mortgage Portfolio Loans VI B.V. (DMPL VI B.V.), Dutch Mortgage Portfolio Loans VII B.V. (DMPL VII B.V.), Dutch Mortgage Portfolio Loans VIII B.V. (DMPL VIII B.V.), Securitised Guaranteed Mortgage Loans I B.V. (SGML I B.V.) and Securitised Guaranteed Mortgage Loans II B.V. (SGML II B.V.).
2010 an amount of EUR 1.0 billion has been repurchased by Achmea Hypotheekbank (2009: 1.7 billion).
The SPVs issued bonds on the international capital market. Achmea Hypotheekbank manages the assigned portfolio of mortgage receivables. The SPVs use the income from the mortgage receivables for payment of principal and interest on the bonds issued by the SPVs. Securitisation of non-guaranteed loans also reduces the capital requirement in respect of the assigned portfolio of mortgage receivables. The bonds issued by DMPL VII B.V. have been purchased by Achmea Hypotheekbank. In august 2010 DMPL VI has been restructured and the AAA notes have been placed into a selected group of investors.
The EUR 10 billion EMTN programme launched in 1996 is used to fund a substantial portion of the mortgage portfolio. No loans were taken up under the EMTN programme in 2010. As at year-end 2010, a total of EUR 0.7 billion was outstanding in public and private loans (2009: EUR 1.2 billion). One Achmea Hypotheekbank bond is quoted on EuroNext Amsterdam and four on Société de la Bourse de Luxembourg.
State Guaranteed Medium Term Note Programme
During the last quarter of 2009 Achmea Hypotheekbank entered into a EUR 5.0 billion programme under the 2008 Credit Guarantee Scheme of the State of the Netherlands. The State of the Netherlands guarantees principal and interest relating to the notes which are issued as part of this programme. To participate in this scheme Achmea Hypotheekbank has met with requirements involving strategy, liquidity profile and capitalization.
Shortly thereafter, Achmea Hypotheekbank issued USD 3.3 billion bonds under the State Guaranteed Medium Term Note Programme with a maturity of five years, for which Achmea Hypotheekbank pays a guarantee fee. The fee for the fixed part of the loan has been included in the amortised cost of the liability and the fee for the variable part will be expensed when incurred.
The currency risk on these loans is fully hedged. In order to manage the interest rate risk, several derivative positions have been entered into. Achmea Hypotheekbank has used the funds raised with this issue to refinance the mortgage portfolio. Achmea Hypotheekbank has no intention to raise additional bonds under this programme.
Savings
Via Achmea Retail Bank N.V., a wholly owned subsidiary of Achmea Bank Holding N.V., savings are taken under the Centraal Beheer Achmea, Levob and FBTO labels. Some of this savings capital is used to fund Achmea Hypotheekbank’s mortgage portfolio. As at 31 December 2010, EUR 1.4 billion was funded in this way (2009: EUR 0.6 billion).
The Bank is not financially dependent upon other entities within the Achmea Group. However, for certain strategic decisions consent from Achmea Holding N.V. may be required.
Begin 2007 heeft Achmea Hypotheekbank een covered bond financieringsprogramma met een omvang tot EUR 10 miljard opgezet. Voorts maakt Achmea Hypotheekbank gebruik van securitisaties als fundingsinstrument. Achmea Hypotheekbank heeft sinds het jaar 2000 zeven securitisatietransacties uitgevoerd.
