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 used to fund loans secured by security rights over mortgages (Hypothekenpfandbriefe) or claims against public sector entities (Öffentliche Pfandbriefe). NORD/LB issues various types like continuous issues, private placements and large-volume benchmarks.

Unsecured bearer bonds

NORD/LB issues bearer bonds (Inhaberschuldverschreibungen or IHS) with fixed interest rates or as floating rate notes with variable interest rates. IHS are issued unsecured, as senior preferred, senior non-preferred or subordinated (Tier 2) bonds. In addition to a fixed maturities, structured notes, e.g. with call or tender rights on shares, can also be issued.

These securities are issued as continuous issuances, private placemnets or public transactions (see International Funding).

NORD/LB bearer bonds are generally listed on the stock exchange.

Prospectus

Registered securities and promissory notes

NORD/LB issues registered securities both covered with public or mortgage collateral as registered Pfandbriefe and unsecured as registered bonds or as promissory notes. The issues are made out with a certificate in the name of the holder, are therefore not eligible for collective safe custody or stock exchange trading and can only be transferred by assignment.

Registered securities and promissory notes can be adapted to the individual requirements of the investor (e.g. in terms of coupon or maturity) and are thus particularly suitable for institutional investors.

In addition to a fixed maturity, structured issues, e.g. with call rights, can also be issued.

International Funding

In addition to the continuous issuances which are predominantly geared towards the domestic capital market, NORD/LB also issues debt securities specially designed for the international capital markets. These bonds are issued either as Pfandbriefe or without any special collateral as unsecured bearer bonds, so the credit quality of the issuer is of major interest in the investment decision. Issuances are usually carried out with the involvement of international syndicates and in accordance with international market standards. Both independent documentation ("stand-alone") and NORD/LB’s medium term note programme (see "Debt Issuance Programme") are used.

Debt Issuance Programme

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

Main characteristics of the NORD/LB Debt Issuance Programme:

• Programme volume up to €25 billion
• Notes can be issued as secured (Pfandbriefe) or unsecured bearer bonds
• Each issue can be flexibly compiled according to investor requirements in terms of currencies and other characteristics (maturity, interest rate, etc.)
• Conditions according to German law
• The programme is suitable for private placements as well as for public benchmark issues via international syndicates.

Prospectus

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 billionli>
• 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
Prospectus

Recognition of Bail-In

For liabilities of NORD/LB under the law of a state outside the EU entered into through the NORD/LB branches in London, New York or Singapore, such as Certificates of Deposits or deposits, the Counterparty acknowledges that the resulting liabilities of NORD/LB may be subject to write-down and conversion powers and agrees to a reduction in the nominal value or outstanding balance, a conversion into shares or other Common Equity Tier 1 instruments or a cancellation of liabilities of NORD/LB in the event that a resolution authority competent for NORD/LB, exercising appropriate powers, takes such resolution action. In addition, the business partner acknowledges that in such case there are no claims or other rights against NORD/LB and that such resolution measures in particular do not constitute grounds for termination.

(in €m)
()* subordinated

(in €m) 

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