deals
Connecting interests
Successful securitization
Achmea
Healthy mandate
11YPOTHEEKBANK N.V.
What'sNewS Issue 6 October 2000 I I
While our office in Mumbai is attract-
ing attention for its F&A initiatives,
it's also working hard in IT - in a recent
involvement in the strategie alliance be-
tween Wipro Technologies and SEAG-
ULL. Rabo India acted as advisor in the
joining of Wipro, a full service provider of
e-business systems integration and imple-
mentation services, and SEAGULL, a lead-
ing provider of e-business enabling soft
ware technology. The agreement aims to
link SEAGULL's rapid delivery of soft
ware solutions with Wipro's target market
of enterging, high-growth and established
«obal corporations and their suppliers,
rimarily in the EJS, Europe and India.
Rabo India providcd advisory services to
Wipro during the transaction - facilitating
an agreement that is set to offer significant
gains for both partners. The Wipro-
SEAGULL alliance is an important step in
establishing the Benelux-India IT corridor,
and demonstrates Rabo India's growing
TMT (Technology, Media, Telecom) prac-
tice in India. Says Ronil Sujan, director,
Rabobank India, 'The Benelux IT markets
are the least fragmented in Europe and
have the highest margins. This alliance is
an excellent example of the India-Benelux
IT potential that lies ahead for both these
dynamic IT markets.' Rabo India's role in
the transaction also contributes to a grow
ing relationship with the cliënt -
Rabobank has previously advised Wipro
in the Benelux markets.
RI's London and Utrecht offices, to-
gether with Rabohypotheekbank,
have been key in assisting a EUR 1 billion
residential mortgage securitization for a
core cliënt, Achmea
Hypotheekbank
N.V. A large in-
crease in business
caused Achmea to
seek a broadening
of its financing base
- securitization was
the solution. Work
ing with the arranger, CIBC, the
Rabobank Group played several key roles
co-lead manager on the distribution of
Cooperation between
Utrecht's F&A and
London's loan syndica-
tion team has won Rl a
syndicated loan man
date for the Nether-
lands-based Royal Nu-
niico NV. Numico
develops, manufactures
and markets specialized
nutritional products for
hospital, nursing home,
and home care use, and
leads the infant milk
formula and medical nu
trition markets in Eu
rope. In May 2000, Nu
mico agreed to buy Rexall Sundown Ine, a
fading manufacturer and marketer of
consumer health products for USD 1.8 bil
lion. RI successfully bid against other
close relationship hanks for the syndicated
loan mandate to arrange the financing for
the acquisition and refinancing of existing
debt. Our Utrecht-Lon-
don alliance, cooperat-
ing with five other banks
as joint arrangers, se-
cured this transaction
with syndicated loan fa-
cilities totaling approxi-
mately EUR 2.5 billion.
Apart from the substan-
tial arranging and un-
derwriting fees gener
aled (some EUR 1.75
million) this mandate
further strengthens RI's
relationship with Nu
mico and confirms our
position as one of the
leading arrangers of syndicated loans for
F&A companies. Key contributors in-
clude: Rik van Slingelandt (Managing
Board, RI); Thos Gieskes, Joost Verheijen
(F&A Utrecht); Robert Halcrow, Julian
Lewry (loan syndication, London); and
Caroline Spreksel (legal, Utrecht).
NIJMICO
bonds, put option provider, swap guaran-
tor, GIC provider, and liquidity facility
provider. RI's team arranged for
Rabohypotheekbank N.V., the specialized
group entity for
mortgages, to write
a put option at 10
years on the portfo
lio of first-lien resi
dential mortgage
loans originated by
Achmea Group.
This put option
gave the bonds generated in the transac
tion an effective 10-year hullet maturity -
allowing them to be sold at a tighter
spread. RI London has also providcd
credit enhancement through the provision
of a swap guarantee, allowing Achmea to
continue to receive the flows from the
mortgages, while Rl ensured that the
flows received by DMPL1 (the securitiza
tion vehicle) were of AAA quality.
Through reductions in both the regulatory
capital requirement and credit exposure,
the cost of the structure was minimized.
RI Utrecht arranged other supportive fa-
cilities including the GIC and the liquidity
facility, and sales placed a significant por-
tion of the oversubscribed bonds. Achmea
is the largest mutual insurer in the
Benelux countries, offering a range of fi-
nancial services including insurance, bank
ing, and asset management. Total assets
are EUR 36.8 billion, and profits in 1999
were EUR 295 million.
With this transaction, RI continues to in-
crease its profile in the European securiti
zation and structuring businesses going
forward. Key players include: Rabohy
potheekbank; London's structured credit
trading, syndication, legal, middlc and
back office; Utrecht's capital markets mar
keting, legal and credit; and many others.
For inquiries contact: Mark Lauber and
Charles Gundy in London and Carolien
van Fggermond and Mirelle Pennings in
Utrecht
