Rabo Capital Securities sets margin on PIE

Media Release April 29, 2009

Rabo Capital Securities sets margin on PIE Capital Securities

Rabo Capital Securities Limited (Rabo Capital) today announced the margin on its offer of PIE Capital Securities to New Zealand investors had been set at 3.75% p.a. following a very successful bookbuild process.

Rabo Capital intends to cap the offer size at NZ$330 million. NZ$295 million of PIE Capital Securities have been allocated on a firm and reserved basis through NZX participants and to institutional investors. Rabo Capital will also provide for a public pool of NZ$35 million.

The Dividend Rate for the period until June 18, 2014, incorporating this margin and the swap rate, will be set on May 25, 2009. (If the Dividend Rate had been set today it would be 8.53% per annum for the first five years. The actual Dividend Rate may differ from this indicative rate but will not be less than 8% per annum.)

The PIE Capital Securities – which are expected to be rated AA- by Standard & Poor’s and Aa2 by Moody’s – constitute perpetual preference shares paying quarterly dividends at a fixed rate for the first five years.

The Dividend Rate will be reset on June 18, 2014 at the margin over the prevailing five year swap rate and will be fixed for a further five years. After that, if the PIE Capital Securities have not been called, the Dividend Rate will be reset quarterly at the same margin over the prevailing 90-day bank bill rate.

The offer – which opened on Monday (April 27, 2009) – is available to both retail and institutional investors.

The offer will close on Friday May 22, 2009, unless closed earlier by the issuer. Dividends will be paid quarterly, with the first dividend payment date scheduled to occur on June 18, 2009.

ASB Bank is the arranger to the offer. ASB Bank, ANZ part of ANZ National Bank Limited, and Forsyth Barr Limited have been appointed joint lead managers. Applications for the PIE Capital Securities can only be made using the application form included in the Investment Statement dated April 17, 2009. Investors should contact their financial advisor, one of the joint lead managers or any NZX Primary Market Participant to request a copy of the Investment Statement or secure an allocation of the capital securities.

The PIE Capital Securities* are unsecured, subordinated obligations of Rabo Capital Securities Limited and the minimum holding amount is $5,000.

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