Today, Aegon Bank priced its inaugural EUR 500 million 5 year Senior Non-Preferred notes with a yield of 0.729%. The deal was 5 times oversubscribed and successfully placed with more than 180 institutional investors.
The notes are expected to be rated A and A- by S&P Global and Fitch, respectively. The proceeds of this transaction are expected to enable Aegon Bank to meet the minimum requirement for own funds and eligible liabilities (MREL), which are anticipated to be applicable as of 2020. The issuance is in line with the growth ambition of Aegon Bank and will result in a more diversified funding mix. Aegon classifies the securities as operational leverage.
Aegon Bank has appointed Credit Agricole, ING, Rabobank, Société Générale and Unicredit as the joint lead managers. ING was mandated as structuring adviser.