-
28 Subordinated liabilities
Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
Sensitivity analysis
Rabobank is exposed to risks regarding their defined benefit
plans related to the assumptions disclosed in the table below.
The sensitivity analysis of these most significant assumptions
has been determined based on changes of the assumptions
occurring at the end of the reporting period that are deemed
reasonably possible.
Effect on defined
Effect on defined
Change in
benefit obligation of
benefit obligation of
in millions of euros
assumption
increase
decrease
2017
2016
2017
2016
Discount rate
0.25%
(25)
(25)
26
27
Salary increases
0.25%
17
18
(17)
(17)
Price inflation
0.25%
7
9
(7)
(7)
Mortality
1 year
21
21
(21)
(20)
Asset-liability matching strategy
The assets that would provide the closest match to the
cashflows of the ACC Loan management defined benefit
plan are a combination of fixed interest and index-linked
bonds. These assets are all quoted in an active market and
all categories of plan assets are disclosed below.
Asset allocation
2017
2016
Shares and alternatives
10%
Interest-bearing securities
92%
47%
Alternatives
6%
41%
Other
2%
2%
Total
100%
100%
The alternatives are investments such as commodities, absolute
return investments and hedge funds.
Estimated contribution
The estimated contributions to pension plans for 2018 are
approximately 2 (2017: 6).
Average duration
The average duration of the defined benefit plan of Friesland
Bank is 17 years (2016:17 years).The weighted average duration
of the defined benefit plan of ACC Loan Management is
disclosed in the table below.
27.2 Other employee benefits
Other employee benefits mainly comprise liabilities for future
long-service awards for an amount of 35 (2016: 35).
in millions of euros
Issued by Rabobank
Other
Total subordinated liabilities
2017
16,137
33
16,170
2016
16,847
14
16,861
In the following table details of the issues of subordinated
liabilities are shown:
Subordinated liabilities
Notional
Year of
Year of
(in millions)
Currency
Coupon
issuance
maturity
2029, early
500
USD
4.00%
2017
repayment
possible
2024
1,500
USD
3.75%
2016
2026
2025, early
225
AUD
5.00%
2015
repayment
possible
2020
2025, early
475
AUD
Variable
2015
repayment
possible
2020
1,500
USD
4.375%
2015
2025
1,250
USD
5.25%
2015
2045
1,000
GBP
4.625%
2014
2029
2026, early
2,000
EUR
2.50%
2014
repayment
possible in
2021
50,800
JPY
1.429%
2014
2024
1,000
EUR
3.875%
2013
2023
1,750
USD
4.625%
2013
2023
1,250
USD
5.75%
2013
2043
1,000
EUR
4.125%
2012
2022
500
GBP
5.25%
2012
2027
1,500
USD
3.95%
2012
2022
1,000
EUR
3.75%
2010
2020
1,000
EUR
5.875%
2009
2019
10
EUR
4.21%
2005
2025
10
EUR
5.32%
2004
2024
Active members
Deferred members
Pensioners
2017
20
25
14
2016
23
25
14
Rabobank Annual Report 2017 - Consolidated financial statements
226
