N.V. Bank Nederlandse Gem eenten BNG Sustainability Bond - PowerPoint PPT Presentation

N.V. Bank Nederlandse Gem eenten BNG Sustainability Bond Presentation

November 2017 Disclaim er THE SLIDES USED IN THIS PRESENTATION ARE STRICTLY CONFIDENTIAL AND HAVE BEEN PREPARED EXCLUSIVELY TO SUPPORT RELATED ORAL DISCUSSIONS. THE INFORMATION CONTAINED IN THIS PRESENTATION IS BEING FURNISHED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHER PERSON. This presentation is based on information provided by N.V. Bank Nederlandse Gemeenten (the “Company”) and other publicly available information as indicated herein. The information contained in this presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities in the United States or any other jurisdiction nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Any decision to invest in or acquire securities of the Company must be based wholly on the information contained in an offering document or prospectus (the “Offering Document”) issued or to be issued by the Company in connection with any such offer and not on the contents hereof and this presentation should not be considered as a recommendation by the Company that any recipient of this presentation should subscribe for or purchase any Securities in any jurisdiction in which such offer, sale or invitation is not authorized or to any person to whom it is unlawful to make such an offer, sale or invitation. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company, and is qualified in its entirety by reference to the detailed information which will appear in the Offering Document. No securities of the Company have been or will be registered under the US Securities Act of 1933, as amended (the “Securities Act”). Accordingly, any securities of the Company will only be issued in the United States pursuant to an exemption from or in a transaction not subject to the registration requirements of the Securities Act. This presentation contains “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995) regarding the intent, belief or current expectations of the Company's management with respect to its financial condition and future results of operations. You can identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect the Company's current views with respect to future events and by their nature are subject to risks, uncertainties and assumptions because they relate to events and depend on circumstances that may or may not occur in the future. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the actual results of the Company may vary materially from those expressed in or implied by the forward-looking statements contained or deemed to be contained herein. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this presentation. For a discussion of some of the important factors that could cause the Company’s results to differ from those expressed in or implied by the forward-looking statements contained herein, please refer to the Offering Document that will be delivered in connection with any securities offering. The Company disclaims any obligation to update, or to announce publicly any revision to, any of the forward-looking statements contained in this presentation. 2

November 2017 Table of Content • Key Fact s 4 • Dut ch Public Sect or 5 • Dut ch Housing Associat ions 6 • BNG Bank Sust ainability Bond 7 • Summary 16 • Cont act I nformat ion 17 3

November 2017 Key Facts • Founded by (local) government in 1914 • Dut ch Government owned • Dut ch St at e 50% (since 1921) • Dut ch local government s 50% • Ownership rest rict ed t o Dut ch public aut horit ies (art . 6 Art icles of Associat ion) • Regist ered shares only (not list ed) • Dut ch Promot ional Bank • Lending rest rict ed t o local aut horit ies and public sect or inst itut ions in t he Net herlands and t he E.U. (art . 2.3 Art icles of Associat ion) • BNG Bank’s rat ings: Aaa (st able) / AAA (st able) / AA+ (st able) • Long t erm funding requirement • 2017 (f): EUR 17bn • 2018 (f): EUR 18bn 4

November 2017 Dutch Public Sector Municipalit ies • credit qualit y: similar as t he St at e of t he Net herlands • Municipal Act / Financial Relat ionship Act • 0% BI S risk-weight ed by Dut ch Cent ral Bank Housing Associat ions • social housing: subsidizing rent • guarant ee fund “WSW”: rat ed Aaa(st able)/ AAA(stable) • back st op by t he St at e of t he Net herlands: irrevocable/ irreversible/ unlimit ed • 0% BI S risk-weight ed by Dut ch Cent ral Bank Healt h Care inst it ut ions • hospit als, elderly homes • guarant ee fund “WFZ”: rat ed AAA(st able) by S&P BNG Long Term Assets: • 0% BI S risk-weight ed by Dut ch Cent ral Bank Eur 79.8 bn (June 2017) Ot her • educat ion sect or (universit ies/ colleges) • Energy Transit ion Financing Facilit y (ETFF) • public ut ilit ies: net work companies / wast e management 5

November 2017 Dutch Housing Associations Social Housing Market • social housing: subsidizing rent for lower income groups (< EUR 36,165 annual income) • non-profit organisat ions / foundat ions • supervised by t he Aut horit y of Housing Associat ion (“Aut orit eit woningcorporat ies”) • t o const ruct , maint ain and rent housing space at an affordable price • number of Housing Associat ions in t he Net herlands: 350 • number of social rent al unit s approx. 2.4 mn (31,5% of t ot al number of dwellings) • average rent EUR 492 per mont h Social Housing Financing • loans t o housing associat ions as financed by BNG Bank are guarant eed • guarant ee fund “WSW”: rat ed Aaa (st able) / AAA (st able) • back st op by t he St at e of t he Net herlands: irrevocable/ irreversible/ unlimit ed • 0% BI S risk-weight ed by Dut ch Cent ral Bank 6

November 2017 BNG Bank Sustainability – I ndependent Partners • Sust ainability is an int egral part of BNG’s st rat egy • BNG Bank worked in close cooperat ion wit h TSC-Telos* , Sust ainabilit y Cent re of Tilburg Universit y, t o develop a new framework for a Sust ainable Bond linked t o t he social housing sect or in t he Net herlands • The BNG Bank Sust ainable Bond crit eria are defined in t he ‘Framework document for Dut ch Housing Associat ions’ (2017) • The proceeds of t he Sust ainabilit y Bond will be t racked by t he issuer and allocat ed t o BNG Bank’s lending and invest ment operat ions t o housing associat ions. This process will be audit ed. • Sust ainalyt ics * * has provided a second opinion for t he framework and independent ly confirmed in t heir opinion t hat it follows t he I CMA Sust ainability Bond Guidelines • I CMA Sust ainability Bond Definit ion Sust ainability Bonds are bonds where t he proceeds will be exclusively applied t o finance or re-finance a combinat ion of bot h Green and Social Proj ect s and are aligned wit h t he four core component s of bot h t he GBP and t he SBP wit h t he former being especially relevant t o underlying Green Proj ect s and t he lat t er t o underlying Social Proj ect s *TSC-Telos specializes in operationalizing sustainable development in regional and urban initiatives. TSC-Telos Research areas are Climate Action & Resource Efficiency, Corporate Social Responsibility, Social Innovation and Governance. Sustainalytics provided an external opinion on the framework. **Sustainalytics B.V. (Sustainalytics), a provider of environmental, social and governance (ESG) research and analysis, evaluated N.V. Bank Nederlandse Gemeenten’s Sustainability Bond transaction set forth in this Prospectus and the alignment thereof with industry best practice, provided views on the robustness and credibility of the Sustainability Bond within 7 the meaning of the alignment with industry best practice.

November 2017 BNG Bank Sustainability Bond Com pliance w ith I CMA Sustainability Bond Guidelines Use of proceeds Housing Associat ions investing in neighborhoods wit h a social challenge , as defined in t he ‘Framework for Housing Associat ions’ Process for project evaluation and selection The select ion is done by an independent part y: Tilburg Sust ainability Cent er of Tilburg Universit y (TSC-Telos). The crit eria are based on Goal No. 11 of t he UN Sust ainable Development Goals (2016). Addit ionally, Sust ainalyt ics provided an independent second opinion on t he framework Management of proceeds The proceeds of t he bond will be t racked by t he issuer and allocat ed t o BNG Bank’s lending and invest ment operat ions t o Housing Associat ions. This will be audit ed and report ed on. This sust ainabilit y bond will (re)finance loans t o eligible Housing Associat ions Reporting The dat a used for t he annual impact report ing by TSC-Telos come from official Dut ch public dat a sources 8