The Rabobank is putting an end to one of the main pillars of its cooperative model by launching its membership certificates on the stock exchange.

Rabobank Membership Certificates (RLC) are special bonds issued by the bank on its own capital and providing a high interest rate of 5%.

From January 2014, outside investors will be able to buy Rabobank Certificates. Financial director Bert Bruggink told the Financieele Dagblad he estimates the initial price will be around €25.

Unique

Bruggink admits the move means the Rabobank will lose a unique product which underpinned the cooperative nature of the bank, says the FD.

The bank has been forced into the move because so many members have sold their certificates over the past few months. The value of certificates held by members has fallen from €6.9bn a year ago to €5.9bn.

The unrest among members is the result of the Rabobank’s involvement in the Libor fixing scandal for which it was fined a total of €774m. Rabobank admitted 30 staff were involved in manipulating interest rates between 2005 and 2011.