Rabobank adheres to ECB’s recommendation to banks not to pay dividends during the COVID-19 pandemic until at least October 2020
Following recent ECB and DNB announcements Rabobank has decided not to make distributions on the Rabobank Certificates in March, June and September 2020. Herewith Rabobank adheres to the recommendation of the ECB not to pay dividends until at least October 2020.
On Friday 27 March the ECB adopted a recommendation on dividend distributions during the COVID-19 pandemic (ECB/2020/19). The ECB considers it essential that banks conserve capital to retain their capacity to support the economy in these uncertain times. The ECB therefore expects banks to refrain from dividend distributions for the financial years 2019 and 2020 until at least 1 October 2020 to ensure that banks retain their capacity to be able to support households, small businesses and corporates.
Following recent ECB and DNB announcements, Rabobank has decided to use its discretion not to pay any distributions on its CET1 instrument, the Rabobank Certificates, on the upcoming scheduled payment dates of 29 March, 29 June and 29 September 2020.
Bas Brouwers, Chief Financial Officer Rabobank: ‘As a cooperative bank we want to maximize our support to the real economy and help our clients through this crisis. It is our priority, together with the banking sector, government, supervisory institutions and other stakeholders, to support our clients, who are being hit so severely by the corona pandemic, by offering them several possibilities for temporary financial relief. As a cooperative bank we want and can be part of the solution and help our clients through this crisis’.
Rabobank is committed to its longstanding relationship with both retail and institutional investors and understands that the decision not to pay distributions will affect the direct return for investors on the Rabobank Certificates during this period until at least 1st October 2020.
Rabobank will closely monitor further updates and recommendations from the regulators, including the ECB’s announced evaluation of the economic situation and the possibility of dividend distributions after 1 October 2020. At such time Rabobank will determine in its full discretion the payments on the Rabobank Certificates, which could result in no, lower or higher payments being made.
For more information about the cooperative Rabobank (its capital position and governance) and the payment policy of the Rabobank Certificates, we refer to www.rabobank.com/ir.
For more information:
Rabobank Press Office
+31 (0) 30 216 2758 of email@example.com
Elements of this press release are considered by Rabobank as inside information relating directly or indirectly to Rabobank within the meaning of article 7 of the Market Abuse Regulation (EU Regulation 596/2014) that is made public in accordance with article 17 Market Abuse Regulation.