Obvion NV, one of the Netherlands’ leading mortgage providers, raised circa EUR 2 billion through the issuance of mortgage-backed bonds in the STORM 2016-II transaction.
As a feature thus far unseen in RMBS transactions, the most senior tranche of the bonds was issued above par, at 101.49 per cent. This premium compensates the Issuer and Obvion for the relatively high coupon of 3m Euribor +60 bps. By setting the margin at 60bps, Obvion decreases the likelihood of hitting the floor of zero of the senior bond coupon (with 3m Euribor currently around -30bps).
Since STORM 2016-II similar above par structures have emerged, following the lead of this unique structure.
Loyens & Loeff acted as legal advisor to Obvion on the deal with a team led by Mariëtte van ‘t Westeinde (picture), assisted by Marijke van der Weide and Bella Heilbron.
Law Firms: Loyens & Loeff;
Clients: Obvion N.V.;