'The secret
of our success'
Relentless progress
Map of Rabobank North America
as of April 2011
Rl Wholesale
Rabobank, N.A.
Rabo AgriFinance
transactions done. We recently did another very large deal - more
than USD 1 billion - for Mars Incorporated, and our competition
were impressed that it was done without their knowledge, because
Mars wanted to do it quickly and with one bank. Our clients and our
competition look to us to be a partner in financing deals because
they know we are a big player and we can deliver."
RI-NAW has come a long way in a short time. André Blom, Chief
Credit Risk Officer at RI-NAW, puts it into perspective. 'When, in 1981
you come to America and you're a Dutch F&A bank, it isn't every
company who lines up and says, 'that's fantastic - we've been
waiting centuries for that.' To grow that market and reputation
is a tough process." RI-NAW's credit function has been a strong
foundation for that effort - today, the region's credit risk
management remains the highest rated in the Rl network.
Internal programmes have also helped. In 1998, the organisation
- then comprising just the US and Canada - implemented an
initiative called 'Organising for Success'.Through the programme,
the business increased cross-sell of products from 9 percent of
revenues in 1998 to 30 percent or higher from 2003 onwards.
RI-NAW also rationalised its cliënt base to focus more on larger
F&A companies. In 2002, a 'Good to Great' programme was
introduced under the leadership of Bob Bucklin and General
Manager Cor Broekhuyse. The main goal was to become the
leading F&A bank in the US by 2006 - so the survey that year
indicating a 63 percent approval rating feit especially rewarding.
Access to clients at the CEO and CFO level is extremely strong, not
least because of initiatives such as the North American Agribusiness
Advisory Board - 22 CEOs of key RI-NAW clients who meet annually -
and the Annual North American F&A Client Appreciation Dinner.
Jim Kenwood,
RI-NAW Relationship
Manager
Proofof Rabobank'sstrength in the UScan be seen in the tremen-
dous success achieved with Smithfield Foods, a leading
global pork company. Building on a 20-year relationship and
a plan developed in 2007, RI-NAW closed a USD 200 million
unsecured bilateral term note with Smithfield in 2008 to
refinance Smithfield's subordinated debt. Then, in July 2009,
RI-NAW played a top-tier role in Smithfield's debt refinancing
and recapitalisation plans. RI-NAW Relationship Manager Jim
Kenwood explains: "Rabobank was mandated as sole lead
arranger and holder of the USD 200 million multi-year senior
secured term note financing. We were then mandated to be
the USD 100 million joint book runner and co-lead arranger
and syndication agent for the USD 1 billion senior secured
asset-backed loan multi-year revolver that was closed in July
2009. Rabobank Securities was also mandated as lead and
senior co-manager for public debt and equity issues. All of
these factors contributed to a credit and cross-sell revenue
stream for Rabobank of over USD 10 million per year. This
compares to the less than USD 1 million that existed in 2007."
And, in early 2011, Rabobank won the mandate to replace
JPMorgan Chase as Smithfield's lead bank - a milestone
event. Synchronised planning and effort across the whole
team was vital to identify Smithfield's needs and win the
business. "That's our secret of success," says Kenwood.
"Top-rate people working hard as a team. You're only as
good as your individual team members."
ISSUE 27 MAY ."lil Rl WORLD
