Achmea Hypotheekbank Covered Bond programma

This notice is issued by Achmea Hypotheekbank N.V. (“Achmea” or the “Issuer”), in its capacity as Issuer under the Achmea Hypotheekbank N.V. € 10,000,000,000 Covered Bond Programme (the "Programme") in connection with the fact that Standard & Poor's Rating Services, a division of The McGraw-Hill Companies, Inc. ("S&P") is requested to act no longer as a rating agency in respect of the Programme at the request of the Issuer and no longer provide a rating on the covered bonds issued and to be issued under the Programme (the "Covered Bonds") as of 25 June 2010. The Issuer confirms that it has notified Stichting Trustee Achmea Covered Bond Company (the “Trustee”) and S&P. The Trustee has confirmed that this removal is not materially prejudicial to the Covered Bondholders. In connection with the removal of S&P, the Trustee has requested that the Covered Bonds be rated by at least two rating agencies.

Furthermore, Achmea has restructured certain aspects of the Programme. The main changes were as follows:


  • Fitch Ratings Ltd. has been appointed to act as a rating agency in respect of the Programme as of 25 June 2010 and has assigned a rating of ‘AAA’ to the current outstanding Covered Bonds;

  • The total return swap agreement supporting the Covered Bonds between the Achmea Covered Bond Company B.V.(“CBC”) and Achmea (the "Total Return Swap") has been supplemented with a Novation Agreement which provides for the Total Return Swap in respect of all series of Covered Bonds currently outstanding to be transferred to the Royal Bank of Scotland plc following an Issuer Default Time (as defined in the Total Return Swap) or a failure by Achmea to post collateral under the credit support annex forming part of the Total Return Swap;

  • Stichting Incasso Achmea Hypotheken (the "Collection Foundation") has been established to receive payments made by borrowers under mortgage loans directly and independently from Achmea and to pay the amounts received to the special purpose entities entitled to such amounts and to Achmea, which will have the effect of separating these cash flows from the estate of Achmea and may enhance the continuity of borrower payments following a Issuer Event of Default (as defined in the conditions of the Covered Bonds) (in the event that borrowers have not already been notified to make payments directly to the CBC);

  • Achmea will be replaced as "Administrator" under the Programme by ATC Financial Services B.V. (“ATC”), an experienced provider of administration services in the Dutch market. The appointment of ATC is intended to support the continuity of administration for the Programme, also in the event of an Issuer Event of Default;

  • An obligation to appoint a standby servicer upon loss of Baa2 by Moody's or BBB by Fitch has been included, and the rating for a replacement of the servicer has been lowered to loss of Baa3 by Moody's or BBB- by Fitch;

  • The minimum size of the reserve fund providing liquidity for the Covered Bonds has been increased to be equal to the next interest payment due on each series of Covered Bonds (or, if higher, the interest due in the next three months) or, if the interest on the Covered Bond is hedged, the next three months' swap payments for each such series of Covered Bonds, plus three months' senior expenses.

  • As a result of the restructuring of the Programme, Moody's Investors Service confirmed the assignment of a rating of ‘Aa2’ to the current outstanding Covered Bonds on 8 June 2010.

The Trustee and/or the Issuer, where applicable, may take any other actions and perform any other formalities as the Trustee and/or the Issuer shall consider appropriate or necessary in connection with the implementation of the above mentioned matters.

Achmea provides mortgage loans for owner-occupied residential properties in the Netherlands. Achmea funds itself in the international capital markets.

For more information, please contact:


Media:
Marco Simmers
+31 6 5343 8718
marco.simmers@achmea.nl

Investors:


Rudi Kramer
+31 30 693 7019
rudi.kramer@achmea.nl