Legal DealFolio - Rabobank Nederland Perpetual Non-Cumulative Capital Securities

Linklaters has advised on the very first issue of hybrid bonds eligible to be counted towards an issuer's tier one capital, following new standards published by the Basel Committee on Banking supervision last week. The new standards require all hybrid bonds to contain a mechanism which forces investors to absorb losses in the event of a stress trigger being reached, either by converting to equity or writing off the value of the deal. Just days after these new rules came into effect, Linklaters advised the joint lead managers in respect of the structuring and issue by Rabobank Nederland of US$2bn 8.375 per cent Perpetual Non-Cumulative Capital Securities. The deal, which was announced on 18 January 2011, was over-subscribed by investors in Asia and Europe (on a Reg S basis). The Linklaters team was led by capital markets partners Carson Welsh, in London and Pim Horsten, in Amsterdam, assisted by capital markets managing associate Caroline Buckridge, in London. Carson Welsh, Linklaters capital markets partner, said: "The Capital Securities contain a write-down feature which is triggered if Rabobank's consolidated equity capital ratio falls below 8 per cent. If losses cause this ratio to be breached, the principal amount of the Capital Securities will be written down by an amount necessary to absorb such losses and help restore the bank's equity capital ratio. We are delighted to have been involved in the issue of the first hybrid capital instrument of the new Basel III era."

Deal Date:	21-01-2011	Practice Area:	Debt Capital Markets
Deal Title:	Rabobank Nederland Perpetual Non-Cumulative Capital Securities	Industry:	Banks
Description:	Linklaters has advised on the very first issue of hybrid bonds eligible to be counted towards an issuer's tier one capital, following new standards published by the Basel Committee on Banking supervision last week. The new standards require all hybrid bonds to contain a mechanism which forces investors to absorb losses in the event of a stress trigger being reached, either by converting to equity or writing off the value of the deal. Just days after these new rules came into effect, Linklaters advised the joint lead managers in respect of the structuring and issue by Rabobank Nederland of US$2bn 8.375 per cent Perpetual Non-Cumulative Capital Securities. The deal, which was announced on 18 January 2011, was over-subscribed by investors in Asia and Europe (on a Reg S basis). The Linklaters team was led by capital markets partners Carson Welsh, in London and Pim Horsten, in Amsterdam, assisted by capital markets managing associate Caroline Buckridge, in London. Carson Welsh, Linklaters capital markets partner, said: "The Capital Securities contain a write-down feature which is triggered if Rabobank's consolidated equity capital ratio falls below 8 per cent. If losses cause this ratio to be breached, the principal amount of the Capital Securities will be written down by an amount necessary to absorb such losses and help restore the bank's equity capital ratio. We are delighted to have been involved in the issue of the first hybrid capital instrument of the new Basel III era."
Financial Center:	London	Value:	100.01-500.00
Advised Party:	Lead Manager	Law Firm	Linklaters
Issuer Jurisdiction:	Netherlands	Listing Jurisdiction:	United Kingdom
Classification:	Equity-Linked Securities Convertible Bonds	Lawyer	Carson Welsh

Practice Areas -

Debt Capital Markets Law Firms and Lawyers

Practice Areas - Debt Capital Markets Law Firms and Lawyers