IN BRIEF
band
Cooperation with
the Robeco Group
First foreign
participation for
Biotech Venture
Fund
'Export Masters'
in China
Payment
transaction
costs calculated
differently
Rabobank
strengthens ties
with Interpolis in-
surance company
'Netherlands
on top in global
agribusiness'
Issue 7/Sep. 21, 1990
The Robeco Group and the
Rabobank Group are planning
to cooperate. There will be a
joint venture in which activ-
ities in the field of investment
will be combined. The Rabo-
banks will start marketing the
Robeco investment funds in
the Netherlands exclusively as
in-house managed funds. Rabo-
bank's existing house funds
will be incorporated in the Ro
beco range. Chairmen Wijffels
(I) and Korteweg announced
this in a press conference.
With managed assets of about
Dfl. 45 billion, the Robeco Group
is the largest independent invest
ment organization outside the
USA. For sixty years now Robeco
has concentrated on offering
products for capital formation to
both individuals and institutional
investors. It is the market leader
in the Netherlands. Robeco's in
vestment funds are listed on
nineteen stock exchanges
throughout the world. The Group
has shareholders in eighty coun-
tries. In addition to the head of
fice in Rotterdam, the Nether
lands, there are branches in
Paris, Geneva, Brussels, London,
Curagao and Montevideo.
Rabobank participates in
various biotechnology pro-
jects through its own partici
pation company, Biotech Ven
ture Fund. This fund was set
up five years ago to provide
risk-bearing capital for highly
promising companies engaged
in biotechnology. A participa
tion was acquired in a foreign
company for the first time at
the start of this year.
The present participations in the
Netherlands cover virtually the
entire agricultural sector. There
are also projects in health care
and the food industry. They vary
from plant improvement to ani-
mal improvement, from human
to veterinary diagnostics and
therapeutics, and from biosen-
sors to fine chemicals. Much at-
tention is also paid to environ-
mental technology. The first foreign
participation of the Biotech
Venture Fund relates to a 10 per
cent holding - worth 10 million
French francs - in the French
company Chemunex. This busi
ness develops, produces and
sells innovative systems for pro-
cess control and quaiity monitor-
ing in the food, beverages and to-
bacco industries and the phar-
maceutical industry. Modern bio-
technological techniques are
used for this purpose. The Chem
unex quaiity control system can
detect any microbiological pollu-
tion of products and production
processes within 24 hours.
Together with a number of
companies, Rabo Financial Ser
vices in Hong Kong has devel-
oped a new product under the
name of 'Export Masters' for the
foreign trading corporations in
China.
The core of the 'Export Masters'
product is the factoring service
contract which the foreign trading
Corporation concludes with Rabo
Financial Services. Under this
contract, RFS undertakes to take
over the insolvency risk of ap-
proved buyers, the debt adminis-
tration and the collection of pay-
ments. Another important aspect
is the quaiity control, which is car-
ried out by one of the participat-
ing companies. The buyer ac-
cepts that this company will in-
spect the goods on his behalf
when they arrivé in the Chinese
port of shipment. The buyer also
accepts the fact that other par-
ticipating companies will be re-
sponsible for goods reception,
packaging, temporary storage
and shipment.
An important advantage of this
new product for the Chinese ex-
porter is that credit facilities are
offered and the exporting party is
protected from the insolvency of
the buyer or from a trade dispute.
An important advantage for the
European buyer is that he is in-
formed in good time about the
quaiity and delivery of the goods
he has ordered. In addition, for
him the payment condition used
(open account) means he has
flexibility, need nottake up ail his
credit facilities and has little pa-
perwork.
Initial reactions from China are
very positive. It is expected that
'Export Masters' will be officially
launched this autumn.
The Rabobank Group's busi
ness customers in the Nether
lands have recently started pay-
ing for the bank's services in a
different way. That particularly
applies to business payment
transactions.
Since July this year most Rabo-
banks have started charging
their business customers the
costs involved in payment trans
actions. This represents a big
change, for previously the com-
mission was calculated on the
current account turnover and the
value dating on the giro turnover.
The value date is now the same
as the date on which the banks
settle the payment orders with
Rabobank recently entered
into a cooperation agreement
with the large Dutch insurance
company Interpolis. The combi-
nation of the two organizations
is mainly aimed at achieving an
integrated supply of bank and
insurance products with the
most favourable possible rates
and conditions.
Close cooperation has long exist-
ed between Interpolis and Rabo
bank. By far the major part of
Interpolis' insurance production
was achieved through the bank.
For example, a number of Inter
polis products bear the name
'Rabo policy'. The two organiz
ations have stiil more points in
common. Their cooperative char-
acter is one of them. In addition,
there are the traditional firm ties
with the agricultural sector in the
Netherlands. The chairman of
the Interpolis Executive Board,
Jan Groninger (photo), has now
joined the Executive Board of
Rabobank Nederland.
each other. That gives the cus-
tomer an interest rate advantage
of one day.
The transaction-related rates are
based on the costs for the type
of transfer. As a result, the cus-
tomer has a better insight into
his payment transaction costs
and can influence these by using
more efficiënt and hence less
expensive forms of payment.
The simultaneous introduction
of a change in the interest rate
structure for the current account
means that from now on the in
terest paid on balances is re-
lated to the interest rate on de-
posits. The interest rate on debit
baiances will be reduced. It is ex
pected that most customers will
benefit by the measures.
Shortly before leaving the
Rabobank Group, Executive
Board member Frans Boons
gave a talk at the University of
Stuttgart, West Germany.
Boons spoke to an audience
of students, customers and
bankers on international bank
ing and agribusiness financing.
The organization of the cooper
ative Rabobank in the Nether
lands and abroad was also dis-
cussed in detail. Boons gave
his talk in German, which was
greatly appreciated by the lis-
teners.
Among other things, he told
them that the Netherlands has
a leading position in the inter
national agribusiness market,
ranking second in the world
afterthe United States in exports
of agricultural products.
