NETHERLANDS – Dutch, German and Belgian pension schemes and asset managers were among the investors buying into the Netherlands’ re-opened 30-year bond today, according to market participants.

The Dutch State Treasury Agency (DSTA) today re-opened its DSL 15 January 2037 issue and raised €1.825bn. A DSTA spokesperson told IPE: “Of course, pension funds are interested in our paper. There’s no doubt about that.”

“In this particular instance we have seen pension funds come in to buy the 30-year from us, typically Dutch investors but also of note German and Belgian asset managers were seen on the buy side,” Padhraic Garvey, global head of developed rates and debt strategy at ING, told IPE.

He added: “There has been some interest, but suffice to say that fund managers have not been falling over themselves for the paper.”

Although the actuarial necessity to lengthen duration remained for most pension funds there was now more room for manoeuvre as solvency has improved with higher interest rates and rising equities, Garvey explained.

The DSTA could not comment on whether pension funds would be the primary investors. “That’s a very hard question, of course. We are not seeing the end investor,” said the spokesperson, explaining that investors participate through primary dealers.

“This is just guessing of course, but probably there will be some pension funds,” he said.

Apart from ING, there were 12 other primary dealers including Fortis, ABN Amro, Barclays Capital and Credit Suisse First Boston.

The objective of the bond – issued for the first time in April last year – is to raise the total amount outstanding to the target volume of “at least €10bn”, said a statement from the Dutch finance ministry.

The bond, with a 4% coupon, had a target amount of €1.5bn to €2.5bn. The total expected call on the capital market in 2006 is between €28bn and €35bn.

The average price was €95.04. The new outstanding volume is €7.835bn.

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