Against all the odds: Rabobank’s perpetual bond wins award
Credit Suisse, Morgan Stanley, Nomura and Rabobank help secure a Euromoney Deals of the Year 2011 award, despite a battered European FIG market and grinding regulatory uncertainty, making it an impressive feat to execute in the first place
New parameters were not the preserve of the SSA market: European FIG was battered not only by sovereign distress but also by grinding regulatory uncertainty throughout the year. Rabobank’s $2 billion 8.4% perpetual non-call tier 1 issue in early November was an answer to both. It achieved the impressive feat of selling the most CRD4 compliant trade to date into one of the weakest market backdrops of the year.
|$2 billion PerpNC 5.5 additional tier 1 capital securities
|Credit Suisse, Morgan Stanley, Nomura, Rabobank
|return to the Global Deals of the Year index
Rabobank’s desire to lead from the front on new hybrid instruments prompted the bank to issue an innovative hybrid tier 1 deal in January last year but the November deal was not only the most CRD4-compliant trade to date but was also successfully closed as other issuers – most notably the EFSF – were forced to pull deals from the market because of relentless sovereign-induced volatility.
"We were mandated during a period of intense volatility, with an event and headline driven market, multiple EU meetings and announcements, all leading into the G20 summit on November 4," explains Sid Prasad, head of EMEA FIG global finance at Nomura in London.