Rabobank co-arranges (1bn CDO for Robeco

Rabobank International has co-arranged and lead managed a (1bn CDO for Robeco Institutional Asset Management. The actively managed synthetic arbitrage collateralised debt obligation permits both capital market and retail investors alike to take advantage of Robeco’s portfolio management skills and to gain exposure to predominately European investment grade corporate and financial institution names. Ratings agencies have granted Robeco significantly more flexibility in the management of the credit exposures than is traditionally permitted. The increased flexibility offers investors greater access to Robeco’s expertise as an asset manager of investment grade corporate and financial and institutional credits. The transaction closed successfully on 17 May 2002 in the face of difficult market conditions for CDO transactions.

The issuer, Robeco CDO IV, issued four series of notes for an amount equal to EUR 250m where three of the four series were rated by Moody’s and Standard & Poor’s. To increase the appeal of the transaction to investors, the notes had a five year maturity with a bullet profile with negligible maturity extension risk. The notes were placed by rabobank International to a wide range of capital market and professional investors throughout Europe and Asia. An innovative retail product was structured using a certain proportion of the notes issued by Robeco CDO IV. The retail product was then offered through the Rabobank member bank’s retail network in the Netherlands and has been widely taken up by this group. In addition to acting as co-arranger and lead manager, Rabobank provided a guaranteed investment contract for the investment of the note proceeds, administration service for Robeco CDO IV and acted as a credit default swap counter-party to Robeco CDO IV.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Benelux
• Consumer