Transactions with the city of Amsterdam and the Dutch government

On numerous occasions during this period, the Amsterdam branch participated in loans for the city of Amsterdam. The loans were for large amounts and the branch s share was often substantial. The branch would sell on to investors a proportion of the bonds issued, retaining the rest on its own books.

For example in September 1874, the branch participated in a 17 million guilder institutional loan, providing 5,980,000 guilders. It received authorisation from Paris to retain bonds worth up to 2 million guilders on its own books.

Several deals were done with the Dutch central government. In June 1878, Paris authorised51 the branch to participate in a 43 million guilder government bond issue and to subscribe for its own account the necessary quantity in order to reach around 2.5 million guilders of nominal. In April 1883, the branch was similarly authorised to take up to 2,500,000 guil- ders for its own account as part of a Netherlands 4% bond issue. The following year the branch joined a consortium alongside the Nederlandsche Handel-Maatschappij and Amsterdamsche Bank, which was awarded the mandate for the 1884 4% issue.

The branch was also one of the underwriters for the Netherlands 3½% loan of 1892. The Board of Directors authorised this transaction for an amount which will provide the branch with capital of 1½ million francs, but the branch should not itself subscribe for an amount exceeding 4 million guilders.

In 1894, the branch helped to underwrite a bond issue for the city of Rotterdam, participating in the amount of 1,850,000 guilders. Placing of the bonds was completed within a few months, giving the branch a profit of ¾%. In May 1900, it co-underwrote a placement guarantee for a 5 million guilder, 4% issue by the city of Rotterdam. The following year, it was part of the syndicate for a 4% loan for the city of Haarlem in the amount of 150,000 guilders.

In 1898, Paris headquarters authorised the branch to participate in a 16 million guilder, 3½% bond issue for the city of Amsterdam. The authorisation given by the Board of Directors was for a quarter of the total amount. That same year, the branch was authorised to join a consortium of banks underwriting a Netherlands government 3% bond in the amount of 55 million guilders. It is interesting to note that the bank decided to underwrite 5 million guilders worth, with the intention of holding fully half of that amount on its own books.

In May 1901, the branch joined a syndicate underwriting a 10 million guilder loan at 4% for the city of Amsterdam. The branch s participation was for one million and the deal earned the bank 10,517 guilders. The same year, the branch helped to underwrite a share

51. Meeting of the Banque de Paris et des Pays-Bas Board of Directors on 18 June 1878




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