Rabo seeks hybrid capital

In New Zealand, Rabobank Nederland has flagged its intention to issue a hydrid Tier 1 capital security via a portfolio investment entity (PIE). The PIE structure confers tax advantages on retail investors on the top marginal tax rate of 38 per cent. Tax on the bond coupons is capped at 30 per cent.

Rabo is hoping to raise at least NZ$200 million with the offer expected to open on April 27. The perpetual securities will offer a fixed coupon of 8 per cent for the first five years, at which time Rabo will have the option of calling them.

Rabo is a triple-A rated bank and the securities should be rated two notches lower to reflect their deep subordination.

Reuters reported that ANZ National issued an 18-month FRN without a government guarantee. ANZ National raised NZ$65 million at 80 bps over bank bills.

Back in Australia, Reuters reported that Commonwealth Bank privately placed $100 million of three-year, government guaranteed floating rate notes at 53 basis points over bank bills and arranged an identical placement for AMP Bank, rated A, at 73 bps over.