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BRIEF-Rabobank to raise 1 bln euros to meet stricter capital requirements
January 11, 2017 / 7:43 AM / 9 months ago

BRIEF-Rabobank to raise 1 bln euros to meet stricter capital requirements

Jan 11 (Reuters) - Rabobank International Holding Bv

* Says is offering new certificates to retail and institutional investors to further strengthen and optimise its capital position

* Says capital raising being carried out ahead of expected increase in capital requirements

* Says minimum expected issue size is EUR 1 billion ($1.06 billion).

* Says targets by 2020 a common equity tier 1-ratio of 14% of risk-weighted assets and a total capital ratio of at least 25%

* Rabobank says has adjusted its target Additional Tier 1 layer to roughly 2% from 3.5% of its risk-weighted assets

* Says as a result, capital ratios at 31 december 2016 will be higher than corresponding ratios as reported in 2016 H1

* 2016 H2 result will be hit by non-cash impairment of stake in achmea of approximately eur 700 million due to developments in the insurance sector

* Rabobank says impairment will be more than offset by a strong operational performance, low impairment charges and cost reduction programmes

* CFO Bas Brouwers said: “Rabobank is traditionally one of the best capitalised banks in the world. The intended issuance will enable us to prudently manage our CET1 capital base in anticipation of the expected strengthening of regulatory requirements.”

* Rabobank says will continue reducing balance sheet by selling loans to investors, develop less capital intensive lending opportunities and focus on mortgages, business loans and food & agri. Source text for Eikon: Further company coverage: ($1 = 0.9471 euros) (Reporting By Thomas Escritt)

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