Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
Issue ofNZD 280 million
Rabo Capital Securities Limited has issued capital securities, the
coupon of which equals the five-year swap interest rate plus
an annual 3.75% mark-up and was set at 8.7864% per annum
on 25 May 2009. As of the issue date (27 May 2009), the coupon
is made payable every quarter in arrears, for the first time on
18 June 2009 (short first interest period). As of 18 June 2014,
the coupon will be made payable every quarter based on the
five-year swap interest plus an annual 3.75% mark-up. As of
18 June 2019, the coupon will be made payable every quarter
based on the 90-day bank bill swap interest rate plus an annual
3.75% mark-up. The coupon is payable at the issuer's discretion.
In case Rabobank does not use its discretionary power to not
pay distributions on the Rabobank Certificates, payment on this
instrument will also apply.
Capital securities issued by Rabobank which were
redeemed during the year
Issue of USD 2,000 million
The distribution is 8.375% per year and is made payable every
six months in arrears as of the issue date (26 January 2011), for
the first time on 26 July 2011As of 26 July 2016, and subject
to Capital Securities not being redeemed early, the distribution
is set for a further five-year period, but without a step-up,
based on the USTreasury Benchmark Rate plus a 6.425%
mark-up.The coupon is payable at the issuer's discretion.
In case Rabobank does not use its discretionary power to not
pay distributions on the Rabobank Certificates, payment on
this instrument will also apply.This issue was redeemed on the
earliest redemption date of 26 July 2016.
The level of profit made by Rabobank may influence the
distribution on the Capital Securities. Should Rabobank become
insolvent, the Capital Securities are subordinate to the rights of all
other (current and future) creditors of Rabobank, unless the rights
of those other creditors are substantively determined otherwise.
in millions of euros 2016 2015
Movements were as follows:
Balance on 1 January 8,002 6,530
Issuance of Capital Securities 1,250 1,500
Costs of issuance of Capital Securities (9) (12)
Redemption of Capital Securities (1,437)
Other 15 (16)
Balance on 31 December 7,821 8,002
Revaluation reserves
in millions of euros 2016 2015
The revaluation reserves and translation differences can be specified as follows:
Cash flow hedges (70) (39)
Interest-bearing securities 316 214
Equity investments - 2
Shares and non-interest-bearing securities 185 615
Total revaluation reserves 431 792
Movements were as follows:
Balance on 1 January 792 964
Exchange rate differences (6) (1)
Revaluations (291) 607
Other (77) (1)
Transferred to profit or loss 13 (777)
Balance on 31 December 431 792
Rabobank's cash flow hedges consist mainly of cross-currency
interest rate swaps which serve to protect against a potential
change in cash flows from financial assets in foreign currencies
with floating interest rates.
Rabobank tests the hedge effectiveness on the basis of
statistical regression analysis models, both prospectively
and retrospectively. At year-end 2016 and 2015, the hedge
relations were highly effective within the range set by IAS
39. On 31 December 2016, the net fair value of the cross-
currency interest rate swaps, classified as cash flow hedges was
-594 (2015:-707).
In 2016, Rabobank accounted for an amount of-87 (2015: 659)
after taxation in other comprehensive income as effective
changes in the fair value of derivatives in cash flow hedges.
In 2016, an amount of 56 (2015: -709) after taxation of cash
flow hedge reserves was reclassified to the income statement.
On 31 December 2016, the cash flow hedge reserves as part
of equity totalled -70 (2015: -39) after taxation. This amount
fluctuates along with the fair value of the derivatives in the
cash flow hedges and is accounted for in profit over the term of
the hedged positions as trading income. The cash flow hedge
reserve relates to a large number of derivatives and hedged
positions with different terms.The maximum term is 25 years,
with the largest concentrations exceeding five years.The IFRS
ineffectiveness for the year ended 31 December 2016 was
148 (2015: 181).
Legal reserves
This concerns the reserve for retained earnings of associates,
software developed in-house and translation differences.
in millions of euros 2016 2015
The legal reserves can be specified as follows:
Retained profits of associates 166 344
Software developed in-house 383 373
Translation differences 203 (76)
Total legal reserves 752 641
287 Notes to the statement of financial position