View Full Version : Rabo Captial Securities

24-06-2013, 01:39 PM
A few years ago I invested $20K in some Rabo Captial Securities (http://www.rabobank.co.nz/Investing/Pages/Rabo-capital-PIE-share-offer.aspx) without really knowing much about it. I was attracted to the high interest rate and that fact that it was a PIE fund.

Anyway, fast forward to now and I still don't know much about them! It says that the interest rate is guaranteed for the first five years. What happens after the five years is up - do I get the opportunity to withdraw or continue investing? Or is it a fixed term?

24-06-2013, 02:50 PM
I don't know much (read that as "I know next to nothing") about this type of investment but from a quick glance at the prospectus:

The dividend will be:
For the subsequent five years from 18 June 2014 until 18 June 2019 the sum of the Margin and the Benchmark Rate on 18 June 2014 (page 10)

How do I cash up:
Holders are entitled to sell their PIE Capital Securities as set out in Condition 3 of the PIE conditions and as described on page 58 under the sub-heading Transferring PIE Capital Securities (page 62)


The PIE Capital Securities are perpetual securities which have no scheduled repayment date. However, the Issuer has the option to redeem the PIE Capital Securities in certain circumstances (including from the First Call Date (18 June 2019)), and the Issuer has undertaken to exercise its option to redeem the PIE Capital Securities on the first Conditional Call Date (18 June 2039) if not already redeemed or purchased (page 63).

I see there are two Rabo issues on the NZDX, https://www.nzx.com/markets/NZDX/hybrids/RCSHA and https://www.nzx.com/markets/NZDX/hybrids/RBOHA so I am guessing it is one of them.

Sorry I don't have more definitive answers, but I am very interested in learning more about these type of products, and hope my ignorant posting is a catalyst for someone else to jump in and put it right ;).

24-06-2013, 03:39 PM
Great, thanks for that. It appears to be the RCSHA one and I've added it to my portfolio in ASB Securities. Good to know it's traded just like shares.