Rabobank's successful issue of the first Basel Ⅲ-compliant Tier 2 Kangaroo bond promises to encourage other offshore lenders to target Asia-Pacific investors for bank capital. The Dutch banking and financial services group raised a chunky A$700m (US$539m) from Thursday's keenly priced dual-tranche trade, which included a rare fixed-rate Tier 2 bond. The A$225m 5.0% 10-year non-call five note priced at 99.043 for a yield of 5.22%, while the A$475m floating-rate note priced to yield three-month BBSW plus 250bp. NAB, Nomura, UBS and Westpac were joint bookrunners on the notes, which are expected to be rated A3/BBB-/A. Rabobank's senior unsecured ratings are Aa2/A+/AA-.
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