Rabobank Member Certificates also available to institutional investors
(Thomson Reuters ONE) -
Freely tradable and increase in planned distribution
Rabobank is to increase the liquidity of its Rabobank Member Certificates by
opening the market to all investors. This will make it possible for
institutional investors to buy certificates as well. This step is in line with
the bank's previously announced capital strategy and is being undertaken
expeditiously due in part to the recent substantial rise in the offer of
certificates. Rabobank stated earlier this year its desire to expand the
potential buyer base of its Rabobank Member Certificates to non-members.
Rabobank's strong capital position will be further strengthened as a result of
this. Raising the planned distributions will make the certificates more
attractive to all Rabobank Member Certificate holders.
Making the Rabobank Member Certificates available to all investors will enable
institutional investors to buy certificates as well. They have for some time
shown interest in this investment product, which is currently traded on an
internal market. Rabobank Member Certificates are expected to be traded from the
end of January 2014 with a listing on the securities market following approval
by the Rabobank Member Certificate holders. The minimum planned distribution for
holders of Rabobank Member Certificates will be raised from 5.2% to 6.5% from
30 December 2013, with the first payment day being 29 March 2014.
Rabobank Member Certificates were issued in 2000 in order to give Rabobank
members the opportunity to participate in the equity of Rabobank. The trading in
these certificates was limited until 2012: there was a low bid and also a low
offer. The number of Rabobank Member Certificates offered for sale rose in 2012
and the Treasury Stock was created in order to safeguard liquidity. There was a
further rise in the offering for sale of certificates in 2013 due to unrest on
the financial markets. Rabobank has recently once again drawn Rabobank Member
Certificate holders' attention to the nature of this investment product and the
importance of diversification. This initiative and the Libor case caused the
number of certificates offered for sale to rise substantially to 40 million
certificates in November 2013. As of today, due to the direct involvement of
institutional investor(s), there is an exceptionally high level of absorption
capacity, with the expectation being that at least an additional 60 million
certificates can be absorbed.
Bert Bruggink, CFO of Rabobank: 'Through making Rabobank Member Certificates
available also to institutional investors, Rabobank is ensuring that a stable
market mechanism for the certificates can be expected going forward. The
certificates will be more attractive to all holders as a result of the higher
minimum planned distribution we offer. Institutional investors have already
shown considerable interest. For Rabobank as a cooperative, the Rabobank Member
Certificates will continue to form a crucial part of our capital base. With a
total capital ratio of nearly 20%, Rabobank is one of the world's best
capitalised banks.'
The internal market will continue to exist until January 2014 and orders placed
by 9:00 a.m. on 23 December 2013 will be executed on 30 December 2013. This
means that the trading day of 2 January 2014 has been moved forward. Orders
placed after 9:00 a.m. on 23 December 2013 will be offered on the securities
market on the first day of the listing in late January 2014. The certificate
holder meeting at which a decision will be made regarding the listing of the
Rabobank Member Certificates will be held shortly.
For more information:
www.rabobank.com
For press inquiries, please contact:
Hendrik Jan Eijpe, head of Media Relations Rabobank Group, +31 30 213 0869;
h.a.j.m.eijpe(at)rn.rabobank.nl.
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Rabobank via GlobeNewswire
[HUG#1746616]
Unternehmensinformation / Kurzprofil:
Datum: 02.12.2013 - 23:25 Uhr
Sprache: Deutsch
News-ID 321950
Anzahl Zeichen: 4681
contact information:
Town:
Utrecht
Kategorie:
Business News
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