APG, the asset management vehicle of pension fund ABP, is close to issuing its first inflation-linked bonds to Dutch housing corporations, according to a report in Dutch financial daily Het Financieele Dagblad.

APG, the asset management vehicle of pension fund ABP, is close to issuing its first inflation-linked bonds to Dutch housing corporations, according to a report in Dutch financial daily Het Financieele Dagblad.

In 2009, the Dutch housing corporations had refinancing requirements totalling EUR 10 bn. The inflation-indexed bonds would enable APG to hedge itself against the risk of Dutch inflation while the housing corporations would obtain access to long-term financing. At present, only the Bank for Dutch municipalities BNG and the bank for Dutch waterboards provide long-term loans to the corporations.

The housing corporations are able to cover the pension fund's inflation risk as rental increases are at the very least indexed to inflation.

Separately, APG is selling 4.5 million of its shares in Dutch listed retail specialist Corio, according to a report by newswire Reuters. The stake amounts to 6 of the outstanding shares in the Dutch company. APG said it had no plans to sell more shares in Corio following the profit-taking. APG will retail a 31% stake in the company.