Sucden "unding deal aased on <now edge and trust market. We have a fantastic portfolio of customers with commodities-related risks. Now it's a matter of leveraging that position and using the opportunities to help our customers and make money for Rabobank," Hungate says. Another change Rabobank could make to improve collaboration across the bank is to change the review and reward system, so that it reflects the roles various people play in deals, Bottenbruch says. To make this work, we all have to look beyond our own products and geography. We have to think about our clients as a whole, what affects them - like the sugar market - and what Rabobank can do to help them. If we can do this, we will do more business, bigger deals and forge even better relationships with our clients. The road ahead is pretty clear, we have to focus on our clients and leverage our existing strengths. It's all there already. We just have to use it more effectively." The volatility on the world's sugar markets has had a big impact on the financing needs of sugar producers and traders. For French sugar trader Sucres et Denrees (Sucden), the sharp fluctuations in sugar prices have led to a big increase in the company's short-term financing needs. In October, Rabobank Trade& Commodity Finance agreed to commit USD 30 million in a USD 150 million 2-year hedge financing facility, which secures liquidity for margin call exposure on the price risk hedges on Sucden's purchase contracts with raw sugar processor Cosan. The deal is a win-win situation for both Rabobank and Sucden, enabling Rabobank to get closer to Sucden while meeting the sugar trader's immediate financing needs. CFO Thierry Bourvis welcomed the deal, at a difficult time in the sugar industry. "The availability of credit had become a lot tighter, too. And when that situation was starting to improve in the second quarter of 2009, sugar prices started to rise very quickly." Sucdens's policy has always been to develop long-term relationships with core partners, both commercial and financial, Mr Bourvis added. "On the financial side, we need banks with real expertise in soft commodities and Rabobank has that. Their teams know our business, which means we can demonstrate the logic and rationale of our credit requirements. The bank's network in the key countries in which we operate, like Brazil, also means Rabobank knows the sugar business in those specific markets, so they can make an accurate assessment of any risks." Given the fluctuations in sugar prices, the biggest increase in demand from both producers and traders has been for hedging products, plus additional funding loans to cover higher prices. The ongoing wave of consolidation in the global sugar industry has also led to a sharp rise in the demand for M&A advisory services. Rabobank's knowledge of these developments, and Sucden's business, means that the bank can offer Sucden solutions adapted to specific situations. 'It is essential that we can rely on financial institutions like Rabobank, especially in difficult market conditions." WORD

Rabobank Bronnenarchief

blad 'RI The Word / The Word' (EN) | 2010 | | pagina 23