Rabobank Group

15-9-2010 | Economic news

Rabobank has issued USD 350 million in bonds with the exceptional term to maturity of 100 years. Twelve investors from Asia, the US and Europe contributed funds.

Rabobank already issued bonds last summer with a 50-year term to maturity, which is also uncommon. Michael Gower, who is responsible for raising long-term funding, says it already became clear at the time of that bond issue that there was a great deal of interest on the part of institutional investors, particularly pension funds and insurance companies.

"This was an excellent opportunity to look into the possibilities of a bond issue with a longer term to maturity. The current low interest rates make it especially attractive at this time. The bonds carry an interest rate of 5.8 percent," says Gower.

This is the first time a bank has ever issued a 100-year bond. Until now only a few railroads and power stations have conducted a bond issue of this type.

“It’s a real confirmation of the strength of the credit, and obviously, it’s borrowing 100-year money at historically low levels," concludes Gower.