Rabobank announces PIE capital securities issue

Media Release April 20, 2009 Rabobank announces PIE capital securities issue to New Zealand investors

Rabo Capital Securities Limited, a wholly-owned subsidiary of Rabobank Nederland, has announced an offer of up to NZ$200 million of PIE Capital Securities to New Zealand investors, with the right to accept unlimited oversubscriptions.

The offer – which will be open from April 27, 2009 until May 22, 2009 – will be 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 the bank was pleased to offer a PIE capital security to New Zealand investors, complementing Rabobank’s successful online savings and investment service RaboPlus.co.nz.

Mr Mitchell said initial expressions of interest in the offer had been very positive.

“The opportunity to invest in an issue with a high rating and from such a strong financial institution is particularly attractive in these times of global economic uncertainty,” he said.

The funds raised by the offer will ultimately constitute Tier 1 Capital for Rabobank Nederland and will be used for the general corporate purposes of the Rabobank Group.

Rabobank has a strong 110-year history and operates in 43 countries.

The PIE Capital Securities are expected to be rated AA- by Standard & Poor’s and Aa2 by Moody’s.

As Rabo Capital Securities Limited will qualify as a Portfolio Investment Entity (PIE), investors in the securities will have their tax on dividends capped at 30 per cent.

Mr Mitchell said the resulting tax benefits would be particularly appealing for investors on 33% and 38% tax rates, while investors on lower tax rates would still benefit from a very attractive return.

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

The minimum investment amount will be $5000 and $1000 increments thereafter.

The dividend rate for the first five years will be set on May 25, 2009 and may be higher than the minimum initial rate of 8%. The first quarterly dividend payment will be made on June 18, 2009.

1 Media Release April 20, 2009 2

Full details of the issue and an application for the capital securities* are contained in the Investment Statement and Prospectus

* The PIE Capital Securities are direct, unsecured and subordinated obligations of Rabo Capital Securities Limited and are not guaranteed by Rabobank Nederland or any other person. Applications can only be made using the application form included in the Investment Statement. No applications for preference shares in Rabo Capital Securities Limited will be accepted or money received unless the subscriber has received the Investment Statement for the offer. Application has been made to NZX for permission to list the PIE Capital Securities and all requirements of NZX relating thereto that can be complied with on or before the date of the distribution of this announcement have been duly complied with. However, NZX accepts no responsibility for any statement in this announcement.

ENDS

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