‘Formidable’ Rabo to price hybrid first

Rabobank is set to price a $2bn perpetual non-call 5-1/2 year hybrid tier one deal later on Wednesday. It is the first to incorporate permanent loss-absorption and market participants hope that it heralds a new era for the hybrid market. Strong appetite for the deal flies in the face of those who were concerned that there would never be demand for instruments with permanent loss-absorption features. To find out all about the deal and whether it opens the market for other borrowers, read EuroWeek on Friday.