Rabo finds a way to reward its Certificate holders

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By Tyler Davies
22 Oct 2020

Rabobank intends to make an exceptional distribution on its equity-like Certificates and will avoid breaching the European Central Bank’s dividend ban by paying its investors in more Certificates rather than in cash.

The Dutch lender does not have shareholders because of its ownership structure as a co-operative bank. 

But it does issue equity-like investment products in the form of Certificates — a perpetual obligation that counts as common equity tier one (CET1) capital and ranks below additional tier ones (AT1s) ...

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