Focussed CORPORATE
FINANCE
12 I
r i
^corporate finance^
1
QJ METAL MOVE
WHAT'S News Issue 2 February 1996
Soption of service across the
world through the network.
O But more specifically, we'11 also
be growing our own trade
finance side. We want to make
it far more profitable, but also
larger so that we can service
the needs of other
international branches.'
In commodities, Tyler and his
team are gradually moving
into a new area for the bank.
'That's right,' he confirms.
'We're looking very seriously
at metais. We are now so
mature on the soft commodity
side that we have to expand
and we'11 be doing metais in
conjunction with the New
York office. Metals is a good
market to expand into because
there are similarities to those
we know very well. The
business can be secured, there
are futures exchanges where
they are hedged, and there are
good legal titles to the
commodities. In fact, they have
some advantages over soft
commodities - they don't burn
and they're long term.'
TOP PLAYERS
Tyler is not worried about any
lack of name recognition when
getting into this new market.
'Most people in The City have
heard of the bank now,' he
says. 'There has certainly been
a marked improvement there.
But the companies we will be
targetting are top players and t
many are already customers on"
the soft side. Our approach
will be the same as with other
commodities in that we will
choose the companies we want
to deal with, then go out and
market them. Smaller
companies may be a bit more
problematic, but in the end
Triple-A still opens doors and
gets attention.'
The philosophy at London Branch appears to be that you
cannot and should not aim to be all things to all clients. At
the same time, the aim is certainly to provide everything
the Branch can offer on a very focussed basis.
Through the combination of
creative ideas, ability to use the
bank's balance sheet and
execution skills, Rabobank is
successfully winning corporate
finance mandates against
strong investment banking
competition. This applies to
each of the five corporate
finance businesses in the UK -
mergers and acquisitions,
project finance, securitization,
structured finance and
syndications.
WINNING M&A
MANDATES
Over the past year, London's
M&A team headed by John
Cripps has proved to be a real
client-relationship builder.
These relationships have been
cemented by winning key sell
mandates in the UK against
long-established competition,
as well as providing the buy
side to Rabobank network
mandates. The M&A network
is a prime example of how the
Berend du Pon
'We do this by applying real
relationship banking
principles,' says Berend du
Pon, assistant general
manager responsible for
London Branch's corporate
finance activities. 'By
approaching our clients this
way, we get closer to them and
are aware of what they need.
The result is you get better at
anticipating and providing
solutions to those needs.'
combination of local
relationship banking, sector
focus and intensive networking
can succeed.
PURSUING
OPPORTUNITIES
A refocussed sector strategy in
line with market opportunities
and the bank's corporate
objectives has positioned
London's project finance team,
led by Simon Morrison, for
progress. 'We are currently
adding telecommunications
and health-care to our existing
project finance focus on oil
and gas, energy and water
treatment,' he says. 'And in
partnership with counterparts
in Utrecht and Chicago, we
will also be pursuing
international opportunities.'
SECURITISATION
Brian James heads up London's
Securitisation team which is
positioned to repackage clients
assets into a rated public
security - which is then
financed by distribution in the
international investment
markets. Typical examples
would be trede receivables,
franchises, lease receivables,
financial portfolios and so on.
In 1995, a securitisation
vehicle was set up, called
Magenta, in a joint venture
with Chemical Bank which is a
complete off balance sheet
Simon Morrison
facility for financing any form
of receivable - principally
through the US commercial
paper market. Securitisation
through Magenta is a real
value-added product for clients
bank-wide and we will be
rolling out this product
actively in 1996 through the
network.
We are unahle to go into
securitisation in more depth
due the lack of space in the UK
special, hut we will come hack
with a fuller report in the next
issue.
FLEXIBLE APPROACH
Although London
Rabobankers talk a lot about
focus, it does not imply any
lack of flexibility. 'It actually
means the opposite,' says Du
Pon. 'We have a specific
AANPAK FOOD AND AGRIBUSINESS
In eerste instantie werden met name de grote corporates benaderd. Een aantal jaren geleden startte kantoor Londen ook met een
afdeling die zich op de middenmarkt in deze sector richtte. Door de grote overeenkomsten en de toegevoegde waarde die het biedt,
zijn de twee afdelingen nu samengevoegd. Ben Davies, hoofd van het F&A-team, verwacht met deze aanpak de goede resultaten die men nu
behaald nog verder te verhogen.
