Rabobank has increased the issue size of its BNG Variabele Lange Rente Obligatie 2 by €10m. According to the bank, continuing demand for the bond - which had been sold out at Euronext Amsterdam for a considerable period - led to its request for the increase.
The bond was originally issued in September last year via triple-A rated Bank Nederlandse Gemeenten (BNG), which is active in the financing of governments and government-related parties and institutions including municipalities, counties, housing associations, health care institutions and other public organisations.
Because the new tranche was not issued within 40 days of the first tranche, it has been issued with a temporary ISIN (XS0804934106). This code will become obsolete in 40 days, following the issue date of 10 July when both tranches will be consolidated under the existing tranche (XS0671689502).
Rabobank said that the majority of the new €10m bonds have already been sold, but the remainder will be offered on Euronext.
Meanwhile, two of Rabobank's maturing products have brought mixed fortunes to investors: Rabo Familiebedrijven Certificaat, which was linked to the Credit Suisse Family Index, was redeemed at 90% of the nominal value while Rabo Global Titans Obligatie 2004-2012 paid - apart from 100% of the nominal - annual income which rose only once above the minimum coupon of 2.75 pa. In July 2007, investors received a coupon of 4.54%.
Rabobank, the Dutch market leader in 2011 with a share of 35% (13 products worth €642%), has kept a low profile so far this year. To-date, it has launched only one product, BNG Valuta Obligatie, once again in collaboration with Bank Nederlandse Gemeenten.