L
t:
The recent merger of Rabo AgServices and Rabo AgriFinance
is a significant step toward Rabobank's goal to become the
'lender of choice' to United States agricultural producers
in the 21 st century.
Combining for strength
cc
RAF's explosive growth
Rabo AgriFinance's (RAF) growth has been
highly impressive and is made even stronger
through cooperation with other Rabobank
entities, particularly Rabobank, N.A. (RNA),
and Rabobank International's Global Financial
Markets (GFM).
Rabobank entered the agricultural
production lending sector at the beginning
of 2003 with lessthan US$ 100 million in
loans, acquired through the purchase of Valley
Independent Bank (VIB), now RNA. After
Rick Henderson
the 2003 purchases of both Lend Lease
Agribusiness, Inc., which was renamed
Rabo AgriFinance, and AgServices of America,
renamed Rabo AgServices (RAS), 'it became
obvious that we'd have multiple Rabo
entities originating loans in the same
geographic area,' says Rick Flenderson,
President and Chief Executive Officer of RAF.
The combined success of these groups made
joining togetherthe next logical step.
Consolidation began when VIB's agricultural
division was merged into RAF in mid-2004.
Then, in 2005, RAS and RAF were both
merged together under the banner of
Rabo AgriFinance.
The growth of RAF's portfolio has been
good,' Flenderson continues. 'We began with
approximately US$ 350 million in January
2003, including the former RAS portfolio, and
we expect to end 2005 with over US$ 1.4
billion of funded loan assets booked.' In total,
RAF manages over 3.7 billion in loan assets,
of which US$ 1.15 billion will be booked at
