Rabo defies market rout with $2bn hybrid
In defiance of the market rout, Rabobank is set to price a $2bn Basel III and CRD IV compliant hybrid tier one security on Wednesday after drawing orders of over $3.5bn. But while the transaction breaks new ground in hybrid capital, it could be months before other issuers follow its lead.
Rabos hybrid, which will pay an 8.4% coupon, has a similar structure to its January transaction, but omits a dividend stopper now that such clauses fall foul of the CRD IV draft.
It's a show of strength for the bank, which is one of the few that can
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: firstname.lastname@example.org
To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: email@example.com or find out more online here.