Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rabobank Sells Biggest Structured Note Since 2011 as ECB Eases

July 3 (Bloomberg) -- Rabobank Groep sold its largest structured notes in more than three years as unprecedented measures by the European Central Bank boosted bullish bets on the region’s equities.

The Utrecht, Netherlands-based lender issued Australian-dollar securities linked to the Euro Stoxx 50 Index last month, according to data compiled by Bloomberg. The notes were structured at the request of clients, said Ger Buls, head of long-term funding for the Asia-Pacific region at the bank.

Rabobank sold three separate A$100 million ($94 million) notes, with each security constituting the most for any structured product since March 2011, the data show. The bonds were sold June 13, 26 and 30, after the ECB cut its deposit rate to minus 0.1 percent and offered conditional loans to banks on June 5 to steer an economy under threat of deflation.

“With the ECB affirming commitment to support the European region through additional stimulus, along with hinting at other actions, this has given investors an opportunity to re-weight to the region,” Tim Schroeders, a portfolio manager who helps oversee $1 billion in equities at Pengana Capital Ltd. in Melbourne, said in an e-mail. “These events are occurring along with concerns easing for the global economy,” he said.

Goldman Sachs Group Inc. underwrote A$200 million of the notes and the rest were arranged by Citigroup Inc., the data show.

The Euro Stoxx 50 has gained 4.61 percent this year to close at 3,252.25 yesterday. The index’s advances in 2012 and 2013 marked the longest stretch of annual increases since 2007.

“Some investors are indeed more bullish on equities, and more specifically on European equities,” Hong Kong-based Buls said in an e-mail.

The notes pay a 9 percent annualized coupon should the benchmark stock measure rise above a certain level, and nothing otherwise, the data show. The information on the level of the index isn’t publicly available.

To contact the reporter on this story: Regina Tan in Hong Kong at rtan87@bloomberg.net

To contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net Beth Thomas, Ken McCallum

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.