Rabobank confirms plan to raise NZ$200 mln through PIE offer

Rabobank confirms plan to raise NZ$200 mln through PIE offer

Rabobank, which owns Raboplus in New Zealand, announced on Monday that its subsidiary Rabo Capital Securities would open an offer of PIE capital securities in a bid to raise NZ$200 million, with the ability to accept unlimited oversubscriptions. The offer of perpetual preference shares will pay a minimum dividend of 8% per annum, paid quarterly over the first five years. The securities are expected to be rated AA- by Standard and Poor's and Aa2 by Moody's. The offer will open on April 27 and close on May 22, 2009 and will be available for both retail and institutional investors, Rabobank said. The 8% dividend will be equivalent to a rate of 9.03% per annum for a non-PIE investment by an investor in the 38% tax bracket.

Rabobank said that the dividend rate for the first five years would be set on May 25, 2009 and may be higher than the minimum initial rate of 8%. The first quarterly dividend payment will be made on June 18, 2009. "The PIE Capital Securities are direct, unsecured and subordinated obligations of Rabo Capital Securities Limited and are not guaranteed by Rabobank Nederland or any other person," Rabobank said. The joint-lead managers for the offer will be ASB Securities, ANZ and Forsyth Barr.

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