Rabobank increases capital buffers by issuing EUR 1.5 billion new Rabobank Certificates
Rabobank will issue 60 million new Rabobank Certificates. The price per newly issued Rabobank Certificate has been set at 108% of the nominal value of EUR 25. The total book of demand was 2.4 times oversubscribed on the back of demand by both institutional and retail investors.
Delivery and payment, as well as the commencement of trading of the newly issued Rabobank Certificates will take place on Tuesday 24 January 2017 at 09.00 a.m. CET. After the issuance, a total nominal amount of approximately EUR 7.4 billion in Rabobank Certificates (297,961,365 Rabobank Certificates) will be outstanding.
Rabobank Certificates are certificates of Participations which are issued by Rabobank (through Stichting AK Rabobank Certificaten). The Rabobank Certificates are perpetual instruments listed on Euronext Amsterdam.
Rabobank Certificates are the most deeply subordinated capital of Rabobank and qualify as CET1 capital. Distributions on the Rabobank Certificates are discretionary and based on the nominal value. As per the current payment policy, Rabobank intends to pay distributions equal to the yield on the most recent 10-year Dutch state loan + 1.5%-point annually with a minimum of 6.5% annually. The intended distributions are paid quarterly.
Information on the issue of Rabobank Certificates can be found at Rabobank.com/ir.
Elements of this press release are considered by Rabobank as inside information relating directly or indirectly to Rabobank within the meaning of article 7 of the Market Abuse Regulation (EU Regulation 596/2014) that is made public in accordance with article 17 Market Abuse Regulation.
This press release is not for distribution, directly or indirectly in or into the United States. This press release is not an offer to sell Rabobank Certificates or the solicitation of any offer to buy Rabobank Certificates, nor shall there be any offer of Rabobank Certificates in any jurisdiction in which such offer or sale would be unlawful.
This press release and the offering are only addressed to, and directed in Member States (other than the Netherlands) of the European Economic Area (the “EEA”) at persons who are “Qualified Investors” within the meaning of Article 2(1)(e) of the Prospectus Directive (“Qualified Investors”). For these purposes, the expression “Prospectus Directive” means Directive 2003/71/EC, as amended.
In addition, in the United Kingdom this press release is being distributed only to, and is directed only at, Qualified Investors (i) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) and qualified investors falling within Article 49(2)(a) to (d) of the Order, and (ii) to whom it may otherwise lawfully be communicated (all such persons together being referred to as “Relevant Persons”).
This press release must not be acted on or relied on (i) in the United Kingdom, by persons who are not Relevant Persons in the United Kingdom, and (ii) in any Member State of the EEA other than the Netherlands and the United Kingdom, by persons who are not Qualified Investors. Any investment or investment activity to which this press release relates is available only to (a) Relevant Persons in the United Kingdom and will be engaged in only with Relevant Persons in the United Kingdom and (b) Qualified Investors in member states of the EEA (other than the Netherlands and the United Kingdom).
Each prospective investor should proceed on the assumption that it must bear the economic risk of an investment in Rabobank Certificates. None of Rabobank or any of the banks involved with the offering make any representation as to (i) the suitability of the Rabobank Participations for any particular investor, (ii) the appropriate accounting treatment and potential tax consequences of investing in the Rabobank Participations or (iii) the future performance of the Rabobank Participations either in absolute terms or relative to competing investments.