February 23, 2018 / 2:55 PM / 2 years ago

Exclusive: Dutch lender NIBC Bank to launch IPO next week - sources

FRANKFURT/LONDON/AMSTERDAM (Reuters) - NIBC Holding NV, the Hague-based bank, will announce as soon as Monday its intention to launch an initial public offering on Euronext in Amsterdam, banking sources said.

Morgan Stanley, Citi and Deutsche Bank would act as global coordinators, with ING and ABN Amro bookrunners on the IPO, the sources told Reuters on Friday.

NIBC was bought by U.S. private equity firm JC Flowers for 1.8 billion euros from Dutch pension funds in 2005.

The bank is known as a mortgage broker and lender to small and medium sized corporate borrowers in the Netherlands, Germany, Britain and Belgium.

Since the 2008 its retail services arm has grown rapidly, despite competition in the concentrated Dutch banking sector.

One source estimated NIBC could be valued at 1.5-1.8 billion euros in the IPO, a slight discount to its book value of 2 billion euros. NIBC reported profit of 213 million euros for 2017, with an underlying return on equity of 8.9 percent.

Plans to sell NIBC to Iceland’s Kraupthing for 3 billion euros ($3.7 billion) in 2008 were derailed by the country’s financial crisis, and NIBC booked heavy losses on its investments in U.S. subprime mortgage loans, with JC Flowers eventually injecting 400 million euros of equity into the bank.

But as the Dutch economy emerged from seven years of zero growth in 2014, NIBC’s restructuring began to bear fruit and the bank began exploring strategic options in August last year.

NIBC CEO Paulus de Wilt said at Feb. 8 earnings the company continued to weigh strategic options, with an IPO possible but “dependent on market circumstances.”

Michele Negen, a spokeswoman for NIBC, said she did not have anything to add to Wilt’s comment that IPO preparations “are progressing very well.”

Morgan Stanley, Deutsche Bank, and JC Flowers declined to comment. Citi, ING and ABN Amro could not immediately be reached for comment.

Reporting by Arno Schuetze in Frankfurt, Dasha Afanasieva in London and Toby Sterling in Amsterdam. Additional reporting by Owen Wild in London; editing by Alexander Smith

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