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Cross-border
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CONSTRUCTION
8
special
What's NewS Issue 10. November 1997
to pursue effectively a policy of
serving food and agribusiness
and health care clients only.
Two years ago, the commercial
people were still structured
according to F&A, non-F&A
and some private banking. The
latter portfolios were quite
considerable. The shift to
exclusive F&A and health care
niches meant a further shake
up. 'Clients had to be passed
on to other financial
institutions or our relationship
with them slowly wound up,'
says Ottfried Koschorreck of
customer services. 'That was,
and still is, a time-consuming
sophisticated, structured
products, and they are very
interested in one of our major
selling points: the international
network.' But this will not
make life as easy as it sounds.
GETTING OUTTHERE
Even though Rabobank is
increasing its name
recognition, the new branch
has its work cut out to impress
upon the market the kind of
service it would like to be
recognized for. How are they
doing that? 'We communicate
with the market much more
now,' Schneider says. 'In the
business because we want to
do it very elegantly. We do not
want to get a bad name in the
market because customers feel
rejected or dismissed.'
NETWORK SELLING
POINT
Rabobank's name is
increasingly better known.
And from the enthusiastic
descriptions of the potential in
our niches, it sounds a lot like
a relationship manager's
dream. The country has a
strong food and agri-sector. In
the past, the F&A environment
was rather conservative. Many
of the corporates had been
built up by single
entrepreneurs who had long-
standing relationships with
long-time banks. 'It was often
historically and nationality
linked,' confirms Schneider.
'Now, the new generation of
management is much more
internationally oriented. They
are more European, more
willing to look at more
past, we followed a rather
closed policy in that we didn't
get out there and say: "We
have real expertise in very
important sectors.'" The
reception area shows some of
the tangible results of this new
approach. A range of German-
language publications, varying
from summarized sector
studies to IRIS reports and
listings for the branch's very
interesting warrant business,
vies for visitors' attention. 'We
send out our publications to
the media, we speak at
seminars, we show we have the
sector know-how they need.'
SURGICAL PRECISION
The same strategy is applied to
the other area of focus - health
care. A new team has taken up
residence very recently in the
branch: two sector specialists
direct from KPMG's own
health care unit supported by a
banker. Rolf-Rainer Riedel is a
physician by training but also
has a financial background. He
is convinced that indepth
know-how is crucial in this
very research-dependent sector.
'What we are trying to do at
present is to kick-start
Rabobank's position as a
health care player,' he says.
'What we have to do is spin a
web over the market and you
can do that by being very
present in related activities
where you can build
reputation.' Unsurprisingly,
Riedel and colleagues Björn
Gross and Oliver Wolter are
out a lot, calling on prospects
in a number of specific
subsectors which have been
defined with surgical precision.
Medical technology, hospitals,
biotechnology, these are
currently the main targets.
'And pharmaceuticals,' says
Riedel. 'We're waiting for a
decision on a very interesting
project where we would be
deal arranger. If we get it, we'11
be very happy indeed.'
KNOW-HOW TRANSFER
Pursuing prospects and putting
together possible projects is an
ongoing activity which cannot
be put on hold even when
there is a chance of closure.
Riedel, Gross and Wolter were
instrumental in organizing a
diploma course for a regional
medical association and are
busy preparing for the start.
'Although this is a project we
began with KPMG,' Riedel
says, 'we will obviously
continue our participation
under the Rabobank banner
now. The seminars are pure
Concerned with
customer service
Ottfried Koschorreck
left and
Klaus Schlosser.
For structured finance'sThomas Berner and his team, beauty
contests are a regular event,especially in the leasing
business. 'It is such a competitive and sophisticated
business here that all the arrangers are expected to go in for
this contest,' he says, 'and the more sophisticated the
operator, the more banks in the bidding.'In this sense.the
German banks appear to have the advantage in that they
have domestic distribution networks.'We have to be even
more "beautifuf'than the domestic competition because
although we take participations, of course, what we really
want is the mandate as arranger.'A recent product that
greatly pleases Frankfurt's team and shows the market
exactly what they can do, is the creation of funds in the 1
Netherlands sold to German individuals. 'A real estate
broker, usually in the Netherlands, will contact us, saying
there is a building available as an investment opportunity.
Because there is a doublé tax treaty between the two
countries,you can construct a neat structure in that rental
income from property is taxed in the country where the
building is located. What we have to do is ensure our
investor's income from rental remains below the Dutch
threshold. It's a very straightforward but also very attractive
structure for customers,' says Stephan Noltzen, who is
responsible for this product.
Thomas Berner
establishing a
track record in
real estate deals.
