FGH Bank to securitise EUR 3 bn property loan portfolio

Rabobank's commercial property lending arm FGH Bank said it plans to securitise EUR 3 bn worth of commercial property loans. The Skyline 2007 CMBS transaction will be the biggest in the Netherlands and one of the biggest in Europe, the company said. The company is being advised by Rabo International and law firm Loyens & Loef. The new notes have been assigned ratings by Moody’s and Fitch Ratings.

The deal will pool 1,471 loans secured on 4,590 office, residential, retail and industrial properties, Rabobank said in a statement sent to Bloomberg. Rabobank is handling the bond sale which will be completed in six parts of varying risk through the Skyline 2007 company. The largest portion of the debt, for EUR 2.55 bn, will not be offered to investors, the bank said. Rabobank will price the bonds in the week of 18 June 18. Ratings are from Moody's Investors Service and Fitch Ratings.

FGH Bank saw its total gross portfolio of loans rise to EUR 10.3 bn in 2006, from EUR 5.6 bn in 2003. In the same period the total volume of loans rose to EUR 4.1 bn, from EUR 1.3 bn.