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33 Other non-controlling interests
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Contents Foreword Management report Corporate governance
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 2011. As 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 US Treasury 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.
Capital securities issued by subsidiaries
Issue of NZD 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.
Trust Preferred Securities III to IV
In 2004, the following tranches of non-cumulative Trust
Preferred Securities were issued.
Rabobank Capital Funding Trust III, Delaware, a group
company of Rabobank, issued 1.5 million non-cumulative
Trust Preferred Securities. The coupon is 5.254% up to and
including 21 October 2016. For the period 21 October 2016
to 31 December 2016 inclusive, the coupon is equal to the
interpolated USD Libor rate for the period, plus 1.5900%.
The coupon is payable at the issuer's discretion.Thereafter,
the distribution is equal to the three-month USD Libor rate
plus 1.5900%. The total proceeds from this issue amounted
Consolidated Financial Statements Company Financial Statements Pillar 3
to USD 1,500 million. This issue was redeemed on the earliest
redemption date of 21 October 2016.
Rabobank Capital Funding Trust IV, Delaware, a group
company of Rabobank, issued 350,000 non-cumulative
Trust Preferred Securities. The coupon is 5.556% up to and
including 31 December 2019. Thereafter, the coupon is equal
to the six-month GBP Libor rate plus 1.4600%. The coupon is
payable at the issuer's discretion.
The total proceeds from this issue amounted to GBP 350 million.
As of 31 December 2019, these Trust Preferred Securities can
be repurchased on each distribution date (which is once every
half-year).
Trust Preferred Securities
in millions of euros
2016
2015
Changes during the year:
Opening balance
1,131
1,043
Redemption
(716)
Exchange rate differences and other
(6)
88
Closing balance
409
1,131
This item relates to shares held by non-controlling interests in
Rabobank subsidiaries.
In millions of euros
2016
2015
Opening balance
492
473
Net profit
64
75
Exchange rate differences
20
(10)
Entities included in consolidation/
deconsolidated
(1)
8
Dividends
(50)
(61)
Other
7
Closing balance
525
492
The Rabobank subsidiaries with the largest non-controlling
interests are De Lage Landen Participacoes Limitada and AGCO
Finance SNC. Both entities are accounted for in the segment
Leasing.
De Lage Landen Participacoes Limitada is based in Porto Alegre,
Brazil, and Rabobank has a capital and voting right interest of
72.88%. The non-controlling interests with regard to this entity
amount to 79 (2015: 65). The following financial data apply:
230 Rabobank Annual Report 2016