Rabobank Sells Loss-Absorbing Hybrid Notes as Paschi Holds Back
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Rabobank Nederland found investors for a subordinated bond meeting regulators’ latest demands even as Monte dei Paschi di Siena SpA chose to pay up rather than risk having to replace similar securities.
Rabobank, the only privately owned European bank with top credit ratings, sold $2 billion of loss-absorbing so-called hybrid Tier 1 notes yesterday that were priced to yield 8.375 percent. Monte Paschi, the world’s oldest bank and the recipient of a government bailout, opted to leave two junior notes in the market when they reach their call date next month, citing “the utmost uncertainty” in regulation as the reason for breaking convention.