Funding: Security

Funding via the capital markets is an important part of the NORD/LB Group's overall financing strategy. NORD/LB has therefore long been particularly connected to the capital markets, both as a permanent issuer in Germany and through a permanent presence and regular borrowing on the international financial markets.

Here you will find an overview of NORD/LB's funding instruments together with selected figures on issue volumes as well as contacts for the individual products.

Recent Benchmark-Issues of NORD/LB Group

Pfandbriefe

Pfandbriefe are covered bonds that serve to fund mortgage-backed loans (mortgage Pfandbriefe) or to fund municipal loans (public Pfandbriefe). NORD/LB issues various types of Pfandbriefe, both as a permanent issue and large-volume benchmark issues.

Bearer bonds

NORD/LB regularly issues unsecured bonds with short, medium and long maturities, with fixed or variable interest rates and without fixed interest (zero coupon). NORD/LB also offers a wide range of structured debt securities, for example callable bonds or equity-linked notes. As a rule, NORD/LB bonds are generally senior. However, they can also be equipped with subordinate clauses. NORD/LB bearer bonds are "gilt-edged" (Section 1807 of the German Civil Code (BGB)) and suitable for investment in the cover portfolio of insurance companies after initial public offering (Section 54 a (2) No. 3 b) of the German Insurance Supervision Act (VAG)). NORD/LB bearer bonds are generally issued without special collateral. Therefore, it is primarily important for investors to seek a good quality of the debtor, as offered by NORD/LB, in their investment decisions.
Prospects

Registered securities and promissory notes

Registered securities are issued in the name of the holder as covered public registered Pfandbriefs or registered Pfandbriefs, as well as unsecured registered bonds. They are therefore not exchange securities, just like promissory notes. Registered securities and promissory notes are not eligible for giro collection, cannot be traded on exchanges and are transferred by assignment. Due to the inherent characteristics described above, registered securities and promissory note loans are particularly suitable for structured transactions with derivative or share-related elements, which can be tailored to the individual requirements of predominantly institutional investors.

Eurobonds

In addition to the permanent issues, which are predominantly geared towards the domestic capital market, NORD/LB also issues debt securities specially designed for the international capital market, known as eurobonds. Eurobonds are basically issued without any special collateral, which means that the credit quality of the debtor is of paramount importance in the investment decision. The issue is usually made with the involvement of international issue consortia and according to Euromarket standards. Stand-alone documentation and the NORD/LB Debt Issuance Programme are used.

Debt Issuance Programme

NORD/LB was one of the first German issuers to launch an international debt issuance programme for the issuance of debt instruments in December 1992. The Debt Issuance Programme is a core element of NORD/LB's funding, particularly due to its flexibility. Main characteristics of the NORD/LB Debt Issuance Programme:

• Issue volume €25 billion
• Issue possible as bearer bonds or as Pfandbrief issues
• The issue can be flexibly compiled according to investor requirements in terms of currencies and other characteristics (maturity, interest rate, etc.)
• Issuance conditions according to German law
• Both senior and subordinated issues are possible
• The programme is suitable for private placements as well as for public issues via international syndicates.

Prospects

Commercial Paper Programme

NORD/LB has had a Commercial Paper Programme (CP Programme) since September 2001 – as an extension of the range of short-term funding instruments. NORD/LB offers domestic and foreign investors the opportunity to invest in short-term securities of a high quality. Main features of the CP Programme:

• Programme volume of €10 billion
• Under the CP Programme, bonds may be issued in euros and all other major currencies, such as USD, CHF, GBP, etc. with maturities of up to 364 days
• Issuance conditions according to German law.

Further information can be found in the current information memorandum:
Prospects

(in €m)
()* subordinated

(in €m) 

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