Rabobank Launches NZ $400M Securities Offer

Rabobank Nederland launches NZ $400 million capital securities offer to New Zealand investors

Triple A rated Rabobank Nederland (Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.) today launched an offer of NZ $400 million of Capital Securities to New Zealand investors, with the right to accept unlimited oversubscriptions.

The Capital Securities – which are perpetual and non-cumulative – constitute Tier One capital for Rabobank Nederland. They will initially pay a margin above the one-year wholesale swap rate.

The Rabobank Nederland Capital Securities represent an opportunity to invest in a high-yielding security backed by a strong credit rating. Rabobank is among the world’s 25 largest financial institutions based on Tier One capital and assets (according to The Banker, July 2007), and has the highest credit ratings from Standard and Poor’s (AAA) and Moody’s (Aaa). The Capital Securities are rated AA by Standard and Poor’s and Aa2 by Moody’s.

Patrick Mitchell, Director of Long Term Funding for Rabobank Nederland, said the bank was pleased to be able to offer a Capital Security to New Zealand institutional and retail investors, complementing Rabobank’s successful New Zealand online savings and investment service RaboPlus.co.nz.

“The initial response to this public offering has been very positive. In times of uncertain returns for some investors, an issue with a strong credit rating has been welcomed by market participants” he said.

The Rabobank offer is scheduled to open on 17 September 2007 and will close on 5 October 2007, unless closed earlier by the bank. Interest will be paid quarterly, with the first Interest Payment Date scheduled to occur on 8 January.

The margin for the offering will be set on 14 September 2007 following a book-build process.

The interest rate for the first 12 months, which incorporates the margin and prevailing one year swap rate, will be set on 8 October 2007. The interest rate will be reset annually on 8 October until 2016. From 8 October 2017 onwards, the rate will be reset quarterly at the same margin over the prevailing 90-day bank bill rate.

The Capital Securities can be called from 8 October 2017 at Rabobank Nederland’s discretion and the bank has undertaken to call the securities by 8 October 2037 subject to certain conditions.

Application has been made to NZX for permission to list the Capital Securities and all the requirements of NZX relating thereto that can be complied with on or before the date of this release have been duly complied with. However, NZX accepts no responsibility for any statement in this release.

An Investment Statement dated 10 September 2007 for the offer of the Capital Securities has been prepared by Rabobank Nederland. Applications for Capital Securities can only be made using the application form included in the Investment Statement.

Interest may be suspended in certain circumstances described in the Investment Statement. The minimum holding amount of the Capital Securities is $5,000. Capital Securities must be held until the quarterly interest payment dates to receive payments of interest.

Credit Suisse is the arranger to the offer and First NZ Capital and ASB Bank have been appointed joint lead managers.

Please contact one of the joint lead managers or any NZX Firm for an Investment Statement in relation to the Capital Securities.

ENDS

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