Robeco has closed its biggest Collateralised Debt Obligation ('CDO') transaction so far, Robeco CDO VII Limited, on April 29, 2003. The transaction is a hybrid cash/synthetic structure and includes a EUR 2.52 billion credit default swap portfolio of primarily investment grade corporate and financial credits as well as an EUR 280 million cash bond portfolio, which brings total deal size to EUR 2.8 billion
Robeco CDO VII Limited has issued a total of EUR 700 million of notes, the majority of which have been placed with retail investors throughout Europe. These notes are in the form of two so-called Combination Notes, rated A2 and Aa2 respectively by Moody's on principal only, as well as a Aaa-rated fixed rate note. The remainder of the notes has been placed with primarily Dutch institutional investors. One of the innovations in this transaction is the issuance of a class of Aaa-rated -European- inflation linked notes.
The transaction is structured to appeal to retail investors and is one in a series of transactions with which Robeco has pioneered distribution of CDOs in the retail investor market.
The transaction was co-managed by Robeco Capital Markets and Rabobank International. The portfolio of credit default swaps and cash bonds will be actively managed by Robeco Institutional Asset Management B.V.
About Robeco
Robeco provides discretionary asset management products and services, as well as a complete range of mutual funds to a large number of institutional and retail clients worldwide. Robeco's product range encompasses fixed-income and equity investments, as well as balanced accounts, money-market funds and alternative investments.
Robeco distributes its funds for the retail market directly, and through other financial institutions. Several of its mutual funds, including the flagship Robeco N.V., are listed on major European stock exchanges such as Amsterdam, Paris, Frankfurt and London.
As well as from its head office in Rotterdam, Robeco services its clients from its European offices in Belgium, France, Luxembourg, Switzerland, Germany and Spain. In the United States, Robeco has offices in New York, Chicago and San Francisco (Weiss, Peck & Greer), Boston (Boston Partners), White Plains (Sage Capital Management) and Toledo (Harbor Capital Advisors).
Robeco is the center for asset management with full operational independence within the Rabobank Group. The combination of the highest credit ratings from the major international rating agencies and the highest Sustainability Cluster Score within the banking sector reflects the high added value Rabobank has always offered its investors, members, clients and employees.