Expansion IN
Poland through
Single currency
forum
ACQUISITION
WHAT'S NewS Issue 6 October 1995
The bank has made its first major invest-
ment in Central Europe. We are to acquire
a majority stake in the Polish agri-industrial
Bank Rolno-Przemyslowy (BRP). Under the
name Rabo-BRP Poland, the new operation
aims to become the leading food and agri-
bank on the domestic market and will also
focus on the international market.
BRP was established in 1993 following an
initiative by the European Fund for the De-
velopment of Polish Villages. This fund cur-
rently holds 46 percent of share capital,
with smaller stakes in the hands of the
Polish-American Enterprise Fund and a
number of domestic agencies operating in
the agri-sector. The Polish bank has assets
equivalent to around USD 30 million and
employs 60 people. Rabobank will acquire
its 51 percent majority shareholding
through a new emission with an option to
increase its share to 76 percent.BRP who
did very well in its first year of operations
has as its mission to finance the food- and
agribusiness sectors in Poland,' says War-
saw-based GM Henk Adams. 'So it was
looking for an additional internationally
established sharehold to support ongoing
growth. In view of our reputation, I'd say
we were a natural choice for them. The ac-
quisition agreement, which was signed in
September and is conditional on receiving
a foreign-exchange licence from the central
bank in Poland, means Rabobank will not
only provide new share capital hut will also
give full operational network and clients.
Pd say these were essential preconditions
for competing successfully on the Polish
market,' Adams confirmed. 'We are also
evaluating opportunities to provide tech-
nical assistance to a number of selected re-
gional and local cooperative banks through
so-called "twinning" arrangements. The
POOLSE ACQUISITIE
Rabobank staat op het punt een
meerderheidsbelang in de Poolse Bank
Rolno-Przemyslowy (agri-industriebank) te
verwerven. Om een meerderheid te kunnen
verwerven in de in 1993 opgezette BRP is
overeengekomen dat er nieuwe aandelen
zullen worden uitgegeven.
BRP is opgericht op initiatief van een Europees
fonds dat momenteel 46 procent van de
aandelen bezit. Ons aandeel zal 51 procent
gaan bedragen met een mogelijkheid tot
uitbreiding naar 76 procent. Ons aandeel
wordt van kracht zodra als een vreemde
valuta licentie is afgegeven door de Poolse
Centrale Bank.
aim here is to achieve a strategie alliance
for providing banking services at local level
to Rabobank clients active in Poland.' M
TRIPLE-A WINNER
This year's Triple-A Award for the best agri-deal goes to the team which put together
the Amylum structured finance contract (see What's NewS, issue 5). Rabobankers in
Belgium, London, France and the Netherlands worked on this ERF 350 million deal
involving a zero coupon convertible bond issue with a 4.5 year
tenor. Roger Delcroix of Rabobank Belgium accepted the
award on behalf of the team. There were two other contenders
-John Clark Sepulvéda's USD 25 million Cargill Brazil amor-
tizing loan, which had to have special authorization from both
the Dutch and Brazilian central banks. The other was the
Purina capital transaction arranged by Larry Sidwell and Brian
Klatt in Chicago with strong support from Brian James in
London.
Rabobank's Utrecht base was the venue
for a top level discussion on the advan-
tages, effects and possible scenarios for a
single European currency. The bank had
already agreed to host the EINEM annual
forum, a meeting of the financial directors
and treasures of major players in Dutch
industry, when a request to organize a
similar event came in from the European
Commission. The EINEM meeting proved
an ideal opportunity for Euro-commis-
sioner Yves-Thibault de Silguy (photo) to
get the single-currency message across.
Over 300 guests and around 50 journalists
heard De Silguy's presentation on the ad-
vantages of a single currency for Europe.
Essentially, he was speaking to the
converted. Through the relatively small
size of the Dutch market, most companies
are obliged to seek growth in cross-border
trade and currency fluctuations can play
havoc with margins. A recent survey
showed that over 60 percent of Dutch
businesses want a single currency sooner
rather than later. 'This is highly encourag-
ing,'said De Silguy, 'hut it still means al-
most 40 percent still have reservations.'
He argued that banks have a major role to
play in gaining acceptance for the concept
and particularly where the general public
is concerned. Rabobank's Herman Wijffels
also emphasized the role of banks, both
wholesale and retail, in achieving the
single currency goal. A strong supporter of
■■I EMU IN UTRECHT
De Euro-commissaris Yves-Thibault
de Silguy was te gast bij Rabobank Neder
land in Utrecht om de voordelen en moge
lijke introductie scenario's voor een Euro
pese eenheidsmunt uiteen te zetten.
Zijn 300 toehoorders waren de leden van
FINEM,de vereniging van financiële direc
teuren van grote Nederlandse bedrijven.
De Silguy was verheugd door het feit dat
een recentelijk onderzoek heeft aange
toond dat meer dan 60 procent van het
Nederlandse bedrijfsleven voor een een
heidsmunt is. Hij ziet de introductie daarvan
dan ook liever eerder dan later.
the 'Euro' as it may be known, he stressed
the need for an orderly introduction of the
single currency. 'To win public support fo^
the introduction, it is crucial that people
believe it is strong and stable and will be
supported by stability-oriented macroecon-
omic policies,' he said. 'This will lead to
more economie growth, higher incomes
and more employment in the whole EMU-
area. but achieving this awareness is a
major challenge for both national and
European authorities. They must also be
aware that the creation of EMU is a one-
shot chance. If this project slated for intro
duction on January 1, 1996, fails, there
will be no second chance.'
Wijffels presented a banker's perpective on
EMU and a single European currency.
A copy is available from Marty Braggaar,
telephone +31 (0)30 2162838.