Future flower power
Holland
Agro -1996
First VIV
América
Latina
IOLLAND AGRO 1996
NAR ON THE DAIRY INDI STRY
What'S News Issue 7 July 1996
short news
15
Planting seeds for later growth.
On today's fast-moving markets, one of the keywords of
success is specialization.That is, identifying a market niche
and exploiting it before anyone else. For example, many of
the baby-boom generation have now reached middle age.
They may well face early retirement.The more forward-
looking among them are anxious to save funds against that
day. At the same time, there are many parents who are
searching for tax-efficient ways of saving for their
children's education. Rabobank looked at these
demographic realities and has devised a unique new
financial product for both groups. It is called 'late flower'.
FISCAL ADVANTAGE
Late flower is essentially a
Eurobond in which the interest
is deferred - (hence the name
late flower) - until maturity in
the years 2014-18. An
individual who invests about
NLG 935 now will eventually
receive a total of NLG 3,750,
paid out in five annual
installments clustered at the end
of the bond's life (this makes
for an effective annual yield of
7.2 percent). The honds are
denominated in multiples of
NLG 5,000. One of the
advantages of the delayed
interest is that those who are
>iow approaching the high
wint of their earning power
(and therefore tax liability) can
defer tax payments until they
begin to actually receive interest
at a later (and therefore less
fiscally restrictive) date.
Moreover, parents are allowed
to pass these honds over to
their children as gifts totalling
NLG 7,800 annually.
SELLING THROUGH THE
COMPETITION
Launched at the start of June
in an initial tranche of NLG
500 million, the late flower
bond has proved an instant
success. Interestingly enough,
the product is so unique that
some 5 percent of the total
issue is being marketed
through the retail networks of
rival banks in the Netherlands,
such as ABN Amro and ING
(which acted as co-leads of the
Eurobond issue). It all goes to
show that it pays to be first off
the mark with a unique
product.
For the fourth consecutive
year, the Indonesian capital,
Jakarta, played host to the
so-called Holland Agro
event. Rabobank's Maaike te
Booy reports on the bank's
role in this Dutch exhibition
of advanced agribusiness
technologies.
The theme this year was dairy
and food and the program
comprised a seminar as well as
product presentations on both
production and marketing by
the 30 participating Dutch
companies at the fair. 'This is a
major event here in Indonesia,'
says Te Booy. 'It was opened
by the minister of agriculture,
Syarifudin Baharsyah, and
attended by Dutch ambassador
Maaike also reminds the
network that as newly
appointed president of IAMA,
Herman Wijffels will chair the
1997 World Congress, which
will be held in Jakarta.
Rabobank is also involved in
the organization and will keep
the network up to date on
developments.
Brouwer. The aim is to further
enhance cooperation and joint
ventures between Indonesian
and Dutch companies in food
and agribusiness.'
The bank's involvement in
Holland Agro took on various
forms. 'We not only acted as
sponsor,' Te Booy explains, 'we
were also closely involved in
the organization. As part of
the seminar program, Adrie
Zwanenberg of food and agri-
research in Utrecht gave a
dedicated presentation on the
Indonesian dairy sectors. The
whole event was a real
Dairy focus - Adrie Zwanenberg on cbanges and cballenges in the
global perspective.
After the success of VIV
Europe and VIV Asia, Latin
America is the latest venue for
an international trade fair
dedicated to intensive poultry.
The Jaarbeurs in Utrecht
which organizes the VIV
events worked closely with
Brazilian Gessulli to launch the
new event. In the past, Gessulli
had arranged national trade
fairs. But the joint venture
with the Jaarbeurs meant it
could internationalize the
event. VIV AL attracted 236
participants, including, of
course, Raibo do Brasil, which
was the only bank represented.
The number of foreign
participants was extremely
high - 147 out of 236, of
whom 37 were Dutch. The US
was second highest with 28.
Shangri La Jakarta II June 1996
