Deal of the month
First
quarter
Rabobank
scores AT
FOSFA
PERFORMANCE
TOURNAMENT
-( competition
OKN'Bl
•h'-
have ouWishtl
DM 225,000,000
Papermill Partnership
avided by tUboban1
KNPBT
Utrecht again picks up the
prize this month with an
innovative structured
5, finance deal for the
international paper
giant KNP BT. The
corporate, which has
around 150 operating
i companies and
f 28,000 staff in
i B' 1
r 30 countries, was
(r
j' looking to invest
DM 225 million in
a new paper board
production machine
for Zulpich in Germany.
'We were in competition with
two other banks,' says Tjeerd de Vries, one
of the three-person structured finance team which
includes Jos Schreurs and Wilfried Mulder. 'They
came up with traditional off-balance proposals, hut
we put together an on-halance structure which appe-
aled more to the cliënt.' According to the team, they
have never heard of this type of structure being used
before. 'There are two main advantages,' says Schreurs.
'One is low after-tax interest costs; the other is an im-
provement in balance-sheet ratios. The latter was parti-
cularly relevant for KNP BT because they didn't want
the intended investment to have an adverse effect on
their equity capital ratio.' The corporate finance team
worked closely on the deal with accounts managers
and colleagues from structured finance and the legal
and fiscal departments in Utrecht.
If you have a 'Deal of the Month' you think meets the
criteria - innovative, creative, profitable, complex,
tailored to client's specific needs, uses networking -
please send your entry to Noor Tania, Marketing Ser
vices, UCB 652. The monthly selection is made by the
CBS board of management and at year-end an overall
1995 winner will receive a Deal of the Year Award.
WHAT'S NewS Issue 3 June/July 1995
Masthead
Editorial Staff Anne Lavelle (Editor),
Stan Polman (Editor in ChiefNoor
Tania (Final Editor/Marketing
Services).
Editorial Address Rabobank
Nederland, Eva van Teeseling,
Editorial assistant, UC-R 519, P.0 Box
17100,3500 HG UTRECHT
Telephone 31 (0)30 90 2807
Telefax 31 (0)30 90 1904
E-Mail address: Raboband@rn.rabo-
bank.nl
^Designed and printed by Hoonte-
Holland, Utrecht.
Please send change of adress cards to
The Editorial Department
looking ahead
June 21
Sao Paulo's Teun de Boon addresses a
symposium on agro-economic devel-
opment in Latin America co-organiz-
ed by the Dutch ministry oftrade
and industry and the NCH Institute
for the region.The meeting will be
held in Noordwijk.the Netherlands
and other speakers include the Dutch
minister van Aartsen and agri-
attaches from Mexico and Brazil.
July 10
The bank's new operation in Kuala
Lumpur opens officially.
July 12
Taiwan becomes the latest addition
to the international network.
Although first-quarter gross re-
sults generated by CBS as a
whole are higher than those
booked in the same period last
year, they are below targets set
for 1995. The main reasons
are unexpected interest-rate
developments and exchange-
rate fluctuations in a number
of currencies. Lending in the
Netherlands slowed through
higher corporate liquidity gen
erated by better than expected
operating results last year.
This means corporates were
often able to finance invest
ment from cash flow. However,
while most lenders are feeling
the pinch, Rabobank is still
The international football
tournament organized annu-
ally by the global oil seed
federation, FOSFA, proved a
way of achieving a number of
goals for Rabobank. 'One of
our clients approached us
about sponsoring the tourna
ment that brought together
teams from oil-seed and grain
companies throughout Eu-
rope,' says the Rotterdam offi-
ce's Guus Rozendaal. 'This ye-
update
managing to expand its cliënt
base.
The international division's
first quarter figures also show
that almost all offices are be-
hind on their targets. Again,
exchange-rate fluctuations are
an important factor here. But
some offices are also behind on
their local currency targets.
The Consolidated balance sheet
total at 31 March was NLG
124.6 billion, around NLG 5
billion lower than year-end
1994. Lending feil by NLG 1.2
billion to 32.6 billion, mainly
as a result of the exchange-rate
factor and also through a dom-
estic trend towards substitut-
ing long for relatively cheaper
short-term loans. In spite of
these developments, return on
solvency rose from 6.8 at year-
end to 8 percent, thus taking
the bank further towards its
targeted goal of 10 percent.
ar's "championships" were to
be held in Holland and we
thought this would be a great
way to get to know clients on
an informal basis.' The Rabo
bank team was made up of
CBSers from Utrecht, Rotter
dam and Rabobank France.
'Although some of the account
managers jokingly said we
should be good hosts and let
the clients win, we didn't
really think there was any
chance of our team getting
past the first round. We had
never played together, so it
seemed unlikely we'd get far.
Amazingly, we came in third.'
The tournament was won by
the Nofta Team, with the
Dutch Oil Team in second
position.