IT Update EAL OF THE MONTH y What's NewS Issue 7 July 1996 short news 19 The deal: NLG 1 billion Eurobond issue. The cliënt: Royal Netherlands PTT. The players: enough Rabobankers around the world to fill this whole page. In other words, a text-book example of international networking. On June 10, Rabobank's origination and syndication department placed a record- breaking NLG 1 billion corporate Eurobond issue for earlier, highly-publicised, and very successful two-stage privatisation. The market's enthusiastic reception for the 10-year NLG 1.3 billion senior debt issue was also gratifying because it was KPN's debut call on the capital market as a private player - such debut offerings are always delicate because their success is an absolute necessity. Among the co-leads on this bond - which matures in the year 2006 and carries a coupon of 6.5 percent, - were ABN Amro Hoare Govett, ohan Roepman Royal Netherlands PTT (KPN) which was so heavily oversubscribed that it was increased by NLG 300 million four days later. 'Of course we were delighted to bring such a successful issue for KPN,' says Johan Roepman, who managed the deal. 'This bond was four times the size of an average corporate issue, and was without a doubt the biggest corporate bond ever launched on this market.' The proceeds will help KPN finance essential investments in new technology and services. The fact that Rabobank won »ie mandate can be seen as a }nsequence of its strong performance and placement power in fixed income issues, and builds on a relationship established during KPN's ING Barings, and SBC Warburg. It was attractively- rated at Aal (by Moody's) and AA+ (by Standard Poors) on the very morning of its launch, thus confirming KPN's high creditworthiness. Roughly 60 percent of the issue was placed among institutional and some retail clients in Holland, and roughly 40 percent to European countries abroad, mainly Switzerland, Germany, Belgium, and Luxeinbourg. 'The deal was orchestrated well,' wrote the International Financial Review. 'Early in the morning, the mandate was officially awarded to Rabobank. Soon afterwards the terms were disclosed, followed by the release of the rating assignments.' One Rabobank salesman adds that: 'syndication went extremely smoothly and we even had to turn down a few banks who wanted to participate in the syndicate.' Indeed, the original NLG 1 billion issue was almost fully placed within hours of its introduction. The transaction's launch spread was 26 basis points (bp) over the curve and 27 bp over the comparable Dutch state loan. During launch day, the spread feil below the 25 bp level and by Thursday it had dropped to 23 bp. The NLG 300 million increase on Friday was welcomed at a 23.5 bp spread. According to one competitor quoted by Euroweek's International Bond Issues Reviewthis was 'the first 10- year plain vanilla we have seen for a long time and a very interesting transaction. It has been a great success and the spread has already come in on the back of very strong demand from a range of investors.' Another added that it was 'a very nice deal. It is great to have a rated corporate on the spectrum of potential Dutch issuers in this market.' DEAL OF THE MONTH De Rabobank kreeg het mandaat voor KPN's eerste Eurobond issue. Deze obligatielening van in totaal NLG 3 mrd. is vier keer zo groot als wat gemiddeld voor bedrijven gedaan wordt. Na vier dagen werd het oorspronkelijke bedrag van NLG 1 mrd.al verhoogd. De International Finance Review alsook collega banken hadden niets dan lovende woorden. Succes door partnership. Ook intern, want het aantal collega's dat hieraan meewerkte beslaat ongeveer een hele bladzijde. Rabobank International's recently-approved long-term information technology (IT) plan has now swung into a new phase:the definition and implementation of common standards of operational excellence - to apply throughout the entire International branch network - in pursuit of shared business goals. The program man agement team is now in place - under the direction of the Program Steering Committee - and project teams are also taking shape. User committees will soon be established in order to represent the interests of the branches.This reflects a conviction that their active participation in the IT program is a prerequisite to its successful implementation. Once mobilisation is complete, the immediate focus of the program will be to conduct a number of business reviews.These will assess the needs and priorities of the branches. Meanwhile, work will continue on the planned implementation of Devon and Eximbills.together with work to deliver an operational branch in Budapest.

Rabobank Bronnenarchief

blad 'What's news' (EN) | 1996 | | pagina 19