c
1997 - our vision
Rabobank
in brief ƒ-
International
What's NewS
Monthi.y internal newsletter for Rabobank International
Issue 1 January 1997
'Rabobank sticks its neck out' is how one authoritative
daily headlined its coverage of the now annual Vision
statement from the bank. While successive Vision
documents focus strongly on the Netherlands and its
economie development - we are, after all, a Dutch bank
with a huge market share in this country - a single
economy can never be viewed in isolation. Referring to
the present low interest rates in the Netherlands, bank
chairman Herman Wijffels predicted ongoing low rates
for the coming years. 'It would seem,' he said to a
capacity audience in Utrecht last December, 'that the
1990s will be the decade of moderate growth and low
interest rates - and that does not only apply to the
Netherlands. We forecast that we will also see moderate
growth this coming year in the US and in Germany.
There is no real danger of inflation and that will keep
rates down.'
Herman Wijffels, Artbur Arnold and Wim Dik (KPN) present their
vision on 1997 to some 500 representatives of major corporates.
more on page 14)
contents
SPREADING THE RISK
Though the signing ceremony
was in Utrecht, and this latest
scoop was very much an
international co-production,
Raibo do Brasil can add
•nother first to its list since
ecoming a full branch. This
most recent 'first' was the
agreement between Rabobank
Nederland and the Bank of
America on a so-called
'emerging market linked note
insurance program'. A wordy
title, hut the name says it all.
'These notes are like any
other,' says Raibo's Willem
Cramer, 'with one major
difference. They are issued by
us and agented by Bank of
America to investors who will
not only take on Rabobank
Nederland's risk, but also
Brazil's country risk. Hence
the name 'emerging market
linked'.' The funds generated
•ill be used by Raibo to
nance its lending and treasury
activities.
There are a number of
advantages - the primary
benefit to the bank is that the
funds brought in by these
programs are exempt from
Dutch Central Bank country
risk provisioning requirements.
'The beauty of this program is
that the investor and not the
bank takes the risk. There are,
of course, also benefits for the
investor buying the paper. He
receives a higher return due to
the premium paid for the
Brazilian country risk.'
This is the first time the bank
has issued debt to fund its
activities in emerging markets
- because the structure is so
innovative, we'11 refrain from
going into detail. But if you
would like to know more,
contact either Haijo Dijkstra in
Utrecht (+31 30 216 9495) or
Dirceu de Miranda in Sao
Paolo (+55 11 5505 2700).
WHAT'S NEW IN THE
NEW YEAR - FIND OUT
IN THIS INFO-PACKED
ISSUE OF WHAT'S
NEWS
Making a bank - the Budapest
experience 4
Who's who - in network,
development and support 6
Luxembourg special - private
banking with a difference 7
Creative issues - placement
power 11
AGCO - leasing for the US 13
Agri deal of the year - group
effort 15
Talking heads - whatTeun de
Boon Can Do... 16
Celebrating tbe success of the first emerging market linked note
insurance program. F.l.t.r. Willem Nijboer, Boris van Been, Haijo
Dijkstra, Daniël McQuoid, Freek Hoek, Teun de Boon, Rob
Wiesman and Rens Dinkhuijsen.
