Biggerclients
GFM products
JeffWright
RNA. Over the next ten years, growth and
strengthening of the portfolio is expected
to continue.
The new combined RAF 'aims to provide
a one-stop shop for the American farmer,'
explains Henderson. This means securing
their short-term operating capital needs
as well as long-term real-estate loans.'
The merger has enabled RAF to now offer
a comprehensive line of financing
products, including erop insurance. 'Since
RAS only had the capacity to provide
short-term erop operating loans, they
were often unable to serve customers'
long-term needs without involving RAF
personnel,' Flenderson explains.
'And, as RAF historically had a large
customer base of farmers with real estate
loans in RAS's primary operating area,
combining it with RAS also presented a
good opportunity to market operating
loans to those customers/ he says.
Long-term real estate loans available
include 10- to 15-year fixed rate loans and
10- to 15-year loans with variable rate
components. RAF also offers an interest-
only loan, used as a revolving credit line
that can have up to a 15-year maturity,
with periodic loan reviews.
The great support we receive from senior
management, credit administration, and
other Rabobank groups has allowed us to
pursue larger, more complex clients,' says
RAF Executive Director JeffWright. 'A
great example of our expanding
capabilities has been our relationship
with Silverado Premium Properties (SPP),
California's largest non-winery owner of
premium vineyards.'
'We started in 2003 as a participant in
SPP's existing credit facility, which was
agented by another bank,' explains
Wright. 'In January of 2005, through
Rabobank's GFM loan syndications team
in New York, we agented a new US$ 170
million credit facility to refinance SPP's
existing vineyard portfolio and finance
new vineyard acquisitions.'
'In September 2005, SPP purchased a
US$ 100 million interest-rate swap from
Rabobank's GFM derivatives group,'
Wright says. The company is also looking
at the possibility of using Rabobank
weather derivatives to insure the risk of
rain-related erop damage during harvest
time. Rabobank's GFM products have
become a key part of the integrated
solutions we offer clients like SPP,' says
Wright. 'Being part of the Rabobank
family has greatly expanded our array of
products. Having these tools at our
disposal Iets our clients and prospects
know we're capable of meeting their
needs now and in future.'
Ongoing growth
RAF has its headquarters in St. Louis,
Missouri, with regional offices in St. Louis,
lowa (Cedar Falls) and California
(Stockton and Fresno). Between 2004 and
2005,12 new support offices opened:
one each in the states of California, Idaho,
lowa, Kansas, Montana, Nebraska,
Oregon, South Dakota, Texas and
Washington; and two offices in Indiana.
In addition, seven joint offices were
established in California with RNA.
RAF plans to open five new offices in
2006: two each in California and
Minnesota, and one in Colorado. RAF will
also continue to invest in personnel and
infrastructure. Staff count currently
exceeds 275 - an increase of 40 on the
previous combined staff numbers of RAF,
RAS and RNA's agricultural division. At the
end of 2005, RAF had 75 Relationship
Managers across the United States, with
ten to 12 more to be added in 2006.
The Word 13
