CORPORATE FINANCE
Sweet deal
Purchasing power
Sustainable energy
Inventive leasing
Windy business
In 2003, Rabobank Internationale (RI) Structured Finance
team arranged a €275 million deal with Cosun, one of the
Netherlands major sugar producing companies. Continues
Jansen Schoonhoven: 'Because of the bank's in-depth knowl-
edge of and experience in this industry, when the Furopean
Sugar Regime announced an amendment regarding subsidies on
stock in 2001, we were able to suggest adopting a favorable
financial structure to Cosun.' A deal was structured to ensure
that the finance costs to the cliënt were lowered. Because of the
low risk, there was a low solvency rating which meant the
Return on Solvency was attractive for Rabobank.
The I.everaged Finance teams focus on clients who wish to
make acquisitions and management buy-ins and buy-outs. Says
Jansen Schoonhoven, 'These clients are typically those who are
making purchases of over €50 million and we focus primarily -
hut not exclusively - on the Food and Agribusiness (F&A) sec
tor. We support the bidding party and arrange the financing for
the deal.' In Australia, Rabobank was one of the leading banks
involved in a Leveraged Finance deal for Burns Philp, a cliënt
and one of the world's largest bakery product manufacturers,
who executed an AUS$ I billion takeover of Goodman Fielder.
Cash flow solutions for 'limited recourse' projects which, true
to the Rabobank philosophy, have an environmental element,
Machiel Jansen Schoonhoven - cash flow solutions
such as finance for water purification plants and wind farms,
fall into the realm of Project Finance. Rabobank operates as
advisor, arranger or agent and provides funds to start up proj
ects based on the cash flow expected to be generated. In 2003,
Rabobank International's Project Finance team arranged a sale
and lease structure for Windpark De Plaet, one of the largest
wind farms in the Netherlands. This was in co-operation with
local member banks, Rabobank Middelharnis and Rabo
Groenbank, which attracts green deposits and invests in green
projects. Windpark De Plaet opened in 2003 and produces over
44 million kilowatts annually.
Another project recently completed was an innovative lease
structure for a large greenhouse cliënt of Rabobank Midden-
Westland and this received wide press coverage in the
Netherlands. The Carbon Procurement Department (CPD),
which started in 2003, acts as agent for the Dutch
Environmental Ministry. It sources, analyzes and selects
projects to create and buy Carbon Emission Rights. These
are often wind-related projects in emerging markets such as
India, China and Brazil.
Together with ANZ bank, Rabobank also received a mandate
from Shell Renewables and Scottish Power to arrange a US$140
million deal to finance the construction and operation of a US
wind farm. 'The sustainable energy market is one that is grow-
8 I The Word I
