27 Con tingen t liabilities
Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
Rabobank issued three subordinated loans in 2013: a EUR
1,000 million loan with a fixed interest rate of 3.875% and
a maturity date in 2023; a USD 1,750 million loan with a fixed
interest rate of 4.625% and a maturity date in 2023; and a USD
1,250 million loan with a fixed interest rate of 5.75% and
a maturity date in 2043.
In 2012, Rabobank issued three subordinated loans: a EUR
1,000 million loan with a fixed interest rate of 4.125% and
a maturity date in 2022; a GBP 500 million loan with a fixed
interest rate of 5.25% and a maturity date in 2027; and a USD
1,500 million loan with a fixed interest rate of 3.95% and
a maturity date in 2022. In 2010, Rabobank issued a EUR
1,000 million loan with a fixed interest rate of 3.75% and
a maturity date in 2020. In 2009, Rabobank issued a EUR
1,000 million loan with a fixed interest rate of 5.875% and
a maturity date in 2019.
Credit related contingent liabilities
Credit granting liabilities represent the unused portions of
funds authorised for the granting of credit in the form of loans,
financial guarantees, letters of credit and other lending related
financial instruments. With regard to the credit risk exposure
from credit granting liabilities, Rabobank is potentially exposed
to losses amounting to the unused portion of the authorised
funds. The total expected loss is lower than the total of the
unused funds.This is because credit granting liabilities are
subject to the clients in question continuing to meet specific
standards of creditworthiness. Financial guarantees represent
irrevocable undertakings that, provided certain conditions are
met, Rabobank will make payments on behalf of clients if they
are unable to meet their financial obligations to third parties.
Rabobank also enters into credit arrangements in the form of
credit facilities made available to safeguard clients' liquidity
requirements, but which have not yet been drawn upon.
The contingent liabilities include guarantees for providers of
collective and individual pension savings plans, as required
by government authorities. The likelihood of an outflow of
resources embodying economic benefits is very low.
in millions of euros 2015 2014
Financial guarantees 10,402 11,826
Credit granting liabilities 46,903 36,429
Letters of credit 4,980 5,392
Credit related contingent liabilities 62,285 53,647
The contractual commitments relating to the acquisition,
construction and development of work in progress and
investment properties amounts to 678 (2014: 587).
Rabobank is involved in a number of legal and arbitration
proceedings in the Netherlands and other countries, including
the United States, in connection with claims brought by
and against Rabobank Group arising from its operations.
For additional information, please refer to Paragraph 4.10, 'Legal
and arbitration proceedings'.
Liabilities relating to operating leases
Rabobank has concluded various operating lease contracts as
lessee, mainly with respect to properties, information systems
and cars. The future net minimum lease payments under non-
cancellable operating leases can be broken down as follows:
in millions of euros 2015 2014
Not later than 1 year 103 76
Later than 1 year but not later than 5 years 308 237
Later than 5 years 185 166
Total liabilities relating to operating leases 596 479
The expected future minimum lease payments receivable
from sub-leases are 3 (2014: 3).The operating lease expenses
are 73 (2014: 75). These are included in 'Other administrative
expenses' in the statement of income.
Payments receivable from operating leases
Rabobank has concluded various operating lease contracts
as lessor. The future minimum lease payments receivable
from non-cancellable operating leases can be broken down
as follows:
No contingent lease payments were recognised as assets
during the year under review.
in millions of euros 2015 2014
Not later than 1 year 1,340 1,393
Later than 1 year but not later than 5 years 2,050 2,456
Later than 5 years 38 71
Total payments receivable from operating
leases 3,428 3,920
231 Notes to the consolidated financial statements
