Money in the bank Funding Policy for the Group The world's safest bank FUNDING LIQUIDITY There was a time when requests for long-term funding and capital from around the organization were modest. But as the Group has grown, so have our requirements. How does Group Treasury - Global Liability Management (GT-GLM) raise the money we need? The Word reports on how we are getting into debt. Creative sourcing Our Funding Policy is based on a number of key drivers: to keep average funding costs as low as possible transparency of funding costs diversification of funding sources flexibility of funding instruments marketing of Rabobank debt and Investor Relations prudent liquidity ratios prudent liquidity mismatch positions Rating agency Rating Since Moody's Aaa/P-1 1986 Standard Poors AAA/A-1+ 1994 Dominion Bond AAA 1999 Fitch-IBCA AA+ N/A Micha Klein (1964), Get the Goodies 1993-1998, C-print mounted on plexiglass and dibond, wooden frame, 35x45x3 cm (Art offer for staff members of the Rabobank Group,! 998) for Mandate must meet all points of policy, not least because the risk involved and the transparency of the debt has direct consequences for the top rating Rabobank enjoys from all agencies. The Funding Mandate covers both sen ior and subordinated (Tiers 1, 2 and 3) issuances of debt securities in various currencies and maturities. Says David Vander, Head of Group Treasury, 'We raise this funding and capital through various programs and instruments issued or guaranteed by Rabobank Nederland. These activities involve a wide range of instruments, including the Member Certificate program (see sidebar, page 15). As a co-operative Within the Rabobank Group, there is keen competition for access to long-term funding. All units, including Rabobank International (RI), are vying for the money needed to expand busi ness and meet the growing needs of cus- tomers. Raising and supplying this flow of funding is the responsibility of Group Treasury in co-operation with Capital Markets. But it is a true team effort in that many disciplines within the Group are involved in the process. Every year, the Funding Policy and Liquidity Risk Committee, comprising professionals from a wide range of departments, requests a so-called Funding Mandate from the Executive and Supervisory Boards. This request is underpinned by the Group's Funding Policy (see sidebar, right). The request 14 I Rl The Word I

Rabobank Bronnenarchief

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