Rabobank International posts
strong results in 2010
RABO INDIA CONCLUDES
REFINANCING DEAL
FOR TATA STEEL
rlobal
Asia
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Rabobank released its 2010 annual results
in March, which showed a strong perfor
mance by Rabobank International (Rl) over
the year. Rl returned a net profït of EUR 797
million, up 37 percent on 2009. This strong
result was a combined effect of solid opera-
tional performance and one-off items. The
sale of RI's stake in YES Bank in India (from
15.9 percent to 4.9 percent), generated a
profït of EUR 152 million. Meanwhile, the
acquisition of a stake in ABC Bank in China
in the second half of 2010 generated a
EUR 32 million revaluation result.
Wholesale Banking saw a stable income
stream at EUR 1,155 million, up 10 percent
on budget, mainly driven by
Global Financial Markets (GFM)
and Professional Products (PP).
PP performed well due to
strong results in TCF, Corporate
Finance and Private Equity,
while GFM ended the year
above budget due to higher trading in
come and positions taken in Client Trad
ing Money Markets, as well as fee income
in Capital Markets. Rural and Retail Banking
(R&R) generated a total income of EUR
1,025 million (4 percent up on 2009) with
a gross result of EUR 355 million, 7 percent
up on 2009. Although loan growth was less
than budgeted, margins improved both
compared to 2009 and budget. Costs were
managed well, leading to a slight improve-
ment in the cost/income ratio.
Realising the 2011 budget may not be all
that easy, but based on the 2010 perfor
mance, there is a strong belief Rl will be
ableto deliveron it.
Tata Steel Works in Jamshedpur, India
Rabo India successfully completed a refïnancing deal forTata
Steel, one of India's largest conglomerates and the world's
lowest cost steel producers. The deal, which involved Tata
Steel refïnancing debt taken on to purchase Anglo-Dutch
steel company Corus in 2007, saw Rabobank's Corporate
Lending and Debt Capital Markets departments acting
as bookrunner and mandated lead arranger for a refïnance
facility of GBP 2.5 billion. Rabo India led the transaction discus-
sions and negotiations with the Tata Steel and Corus teams.
Tata Steel approached a number of relationship banks for the
refïnancing of the GBP 2.5 billion facility, and Rabobank, along
with BNP Paribas, Credit Agricole, Citi and Standard Chartered,
provided the highest underwriting limits of GBP 250 million
each. The underwriting group was closed with the inclusion
of seven other banks. Given the high degree of interest from
relationship banks, the underwriting amount of Rabobank,
BNP Paribas, Credit Agricole, Citi and Standard Chartered was
reduced to GBP 225 million per bank.
The Tata Group is one of the most important conglomerates
for Rabo in India. Rabobank has a relationship with a number
of F&A-focused businesses within the Group, including Tata
Beverages and Tata's fertiliser/agrochemicals operations.
Additionally, the bank has a mandate from Tata-Corus to
advise them on their power project in the Netherlands.
ISSUE 27 MAY 21 Rl WORLD