3 Issuing costs of state guaranteed bonds - Financial Risk and ...

Annex 1 Eligibility criteria for state guarantees
A1.1.8 The Netherlands 31
Implementation date of scheme
23 October 2008
End date of entry into scheme
31 December 2010 (extended from 31 st December 2009)
Fee for instrument
The fee depended on the maximum tenor and the credit rating of the bank. If longer than 1 year
the fixed (FF) and variable (VF) rate applied, whereas if shorter than 1 year just fixed rate applied.
The following lists the fee depending on the credit rating of the institution:
AAA: FF = 75, VF = 53;
AA: FF = 80, VF = 68;
A or A+: FF = 85, VF = 73;
A-: FF=90, VF = 73;
Other: FF = 110, VF = 93 (Maximum annual guarantee fee valid from 1 July 2010 onwards)
Maximum tenor
3 years
Institution criteria
1) a) Must be a bank; b) have its seat in the Netherlands; c) be authorised to perform its banking
activities pursuant to Section 2:12(1), 2:13(1) or 3:111(1) of the Financial Supervision Act; and d)
be registered in the register as referred to in Section 1:107(2)(a) of the Financial Supervision Act.
2) Must have a substantial business in the Netherlands
3) Must have a solvency ratio which is to the Guarantor's satisfaction, taking into account the
requirements of the Financial Supervision Act and any agreement of the bank with, or any
directive or request to the bank from, the Dutch Central Bank.
No more than one member of a corporate group may be eligible under the scheme, unless the
Guarantor determines otherwise.
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For details see:
http://www.linklaters.com/pdfs/publications/capitalmarkets/StateGuaranteesGuide.pdf;
http://www.dsta.nl/english/Subjects/Guarantee_scheme;
http://www.mayerbrown.com/publications/article.asp?id=7854&nid=6.
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