Rabobank considering &200 million securities issue

Media Release April 9, 2009

Rabobank considering PIE capital securities issue to New Zealand investors

Rabo Capital Securities Limited (Rabo Capital), a wholly-owned subsidiary of Rabobank Nederland, is considering making an offer of up to NZ$200 million of PIE Capital Securities to the public (with the option to accept unlimited oversubscriptions) and is seeking preliminary indications of interest.

The offer would be made available to both retail and institutional investors. The securities will have a minimum dividend of 8% per annum, equivalent to 9.03% per annum on a non-PIE investment for a retail investor on a 38% income tax rate. Director of long-term funding for Rabobank Patrick Mitchell said as Rabo Capital will qualify as a Portfolio Investment Entity (PIE), investors in the securities will have their tax on dividends capped at 30 per cent.

“The resulting tax benefits are particularly appealing for investors on 33% and 38% tax rates, while investors on lower tax rates will still benefit from a very attractive return,” he said.

The PIE Capital Securities will constitute perpetual preference shares paying quarterly dividends at a fixed rate for the first five years.

The funds raised by the offer will constitute Tier I Capital for Rabobank Nederland and will be used for the general corporate purposes of the Rabobank Group. It is expected the PIE Capital Securities will be assigned a rating of AA- from Standard and Poor’s and Aa2 from Moody’s.

The offer is expected to open on April 27, 2009, with full details of the issue to be contained in an Investment Statement and the Prospectus.

Interest in the offer may be registered by contacting joint lead managers – ASB Securities on 0800 ASB OFFER (0800 272 633) or ANZ, part of ANZ National Bank Limited, on 0800 269 476 – or Forsyth Barr on 0800 367 227 or a financial adviser. Alternatively interested parties may visit www.asbsecurities.co.nz, www.anz.co.nz or www.forbar.co.nz. Once registered, parties will receive a copy of the Investment Statement when it becomes available.

No money is currently being sought and no applications for PIE Capital Securities will be accepted or money received until a subscriber has received an Investment Statement for the offer. Indications of interest will not involve an obligation or commitment of any kind.

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