Rl shrugs off credit crunch uncertainty REGION SPECIAL EUROPE KNOW YOUR CUSTOMER further. To do that we would have to provide more services, includ- ing cash management. But setting up the infrastructure would require considerable investment, with no guarantee of the required returns." This is why right now, Rl is concentrating on carving out a niche in Europe, with a strong focus on F&A and a secondary focus on TMI and renewable energy. However, both men still see a lot of growth poten- tial in Europe, as the bank increases the cross-selling of M&A, financial markets, structured fïnance and other services. "We've already increased cross-selling a lot and we fully expect this to continue. Let's face it, you will never build a profitable relationship with a dient based on lending alone. So we have to cross-sell", says Ten Heggeler. However, he adds, Rl has to be careful not to overstretch. Fur ther growth will require focus, focus and more focus. "We have to focus on F&A, focus on cross-sell and focus on our chosen clients. Basically, we have to focus on what we do best." about the project, fully in line with the development strategy of their recently set-up subsidiary for premium wines, called Underdog. After the initial contacts, the M&A team, which also included Rodney Hureau in New York, actually kicked off the project in December 2007 and the alliance was already a fact by early April of this year. "It's a perfect match", says Armando, "combining Osborne's wine-making skills with TWG's unparalleled route-to-market in the US.The cliënt was extremely pleased with the partnership structure forged by Rabobank, which maximises Osborne's profitability and ensures the parties' long term commit- ment." Just as important, the deal further confirms the business potential of the co-operation between Rl Europe and AmericaSj.with 2007 cross border M&A transactions being four times more numerous than in 2006. Armando believes the deal will create opportunities for more M&A mandates in the future. "It has certainly further strengthened our relationship with TWG, enhancing Rabobank's strategie dialogue with the CEO. Furthermore, this transac tion is a terrific marketing tooi to show existing and potential clients just how much we can do for them." "Fernando Garcia, who originated the deal in Spain together with Sergio Diaz de Rabago, RM to Osborne in Spain, concludes: 'This is the second time we act as M&A advisor to Osborne, and we are already in conversations for new M&A engage- ments, which clearly shows how strong our relationship is, based on Rabobank's ability to deliver strategie solutions to Osborne". Rabobank's dealing room in Utrecht the Netherlands. Despite extremely challenging market conditions, acting as sole co-ordinating mandated lead arranger, in February 2008 Ra bobank International successfully placed 275 million of senior and mezzanine debt for the acquisition of Dutch coffee compa- ny Drie Mollen, by private UK equity firm CapVest Equity Part ners. The deal was striking as the very fïrst post-credit crunch European buy-out deal and a testament to the hard work and incredible co-operation across numerous Rl departments, says Björn Stibbe of RI's Utrecht-based Leveraged Finance team. It was also a perfect example of multi-product delivery. Not only did Rabo Securities act as sole sell-side advisor, Rl Leveraged Finance and Loan Syndication originated the financing and Rl was the only party prepared to solely underwrite the transac tion. Due to post credit crunch uncertainty, a number of other banks initially involved in the transaction, pulled out hoping for calmer waters, but Rl decided to go ahead, believing there was little chance of any imminent improvement to the market. Both the buyer and the seller wanted certainty of financing and that is exactly what Rl provided, says Marin Boon of Leveraged Finance. "We structured the deal and then the syndication group sold down our exposure. In fact we did such a good job the under- written exposure was oversubscribed." The co-operation was phenomenal, Stibbe adds, as the trans action involved relationship managers, the research team, loan syndication and others. "Just about the only people we didn't work with was M&A and they were working on the deal for the counterparty. So it was win-win all round." Of course, it helped that the bank had such a close relationship with Drie Mollen and the vendors, a relationship Rl has certainly deepened following the successful execution of the transaction. 'The buy-out market is always event-driven and it's difficult to create events that make full use of all our capabilities. But what this proves is that we are creative and proactive enough to take these events and put together a transaction that does just that to our clients' benefit. And we can only do that by calling on the expertise of our colleagues right across the bank. And given that this deal was being watched with a great deal of interest, due to the market conditions, I believe we've shown a lot of people just how good we can be", Stibbe says. issue 16 THE WORD

Rabobank Bronnenarchief

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