A banking beauty contest
SPECIAL REPORT IA TERM ITIONAL DESKS
At the end of last year, Dutch company Plasticum
Group - a leading European designer and manufacturer
of innovative plastic packaging with production
facilities in the Netherlands, Germany and the UK
- invited Rabobank, ABN AMRO, and Van Lanschot
to come up with suggestions to improve financial
resources. After mutual deliberation, Rabobank came
up with the idea to refinance shareholder loans,
improve working capital, refinance mid-term loans and
find extra means for further international expansion.
This banking beauty contest resulted in a dear win
for Rabobank and a deal with a total debt package of
roughly EUR 25 million.
Rabobank Tilburg was assisted by Rabobank's regional
Corporate Clients team and International Services,
whose International Finance Manager and relevant
International Desks supplied advice on structurirtg,
country risk and legal issues regarding the foreign
activities in the UK and Germany. The International
Desks in London and Dusseldorf were involved
in remortgaging local plants and supplying local
working capital. Lending on the basis of collateral of
local assets gives Rabobank's clients more financial
flexibility. "Rabobank's team of professional advisors
is supporting us to achieve our international growth
plans by facilitating tailor-made credit lines and
implementing an international electronic banking
system against competitive conditions," according
to the CFO of Plasticum, Cees van der Meer. As a result
of this successful international deal, Rabobank Tilburg
is nowthe preferred bank for Plasticum.
Dave van Slijpe, Senior Relationship manager, and
Tessa Kits, Director, International Desk Manager UK
Ireland: 'The successful refinancing of Plasticum is an
important milestone in our relationship with this key
cliënt of Rabobank Tilburg and demonstrates that we
are able to service our Dutch clients not only in The
Netherlands but also internationally."
abroad can be seen as a satellite network around Rabobank.
They can provide Rabobank clients with services locally
and we can give their larger customers access to Rabobank
services abroad."
A number of international wholesale customers are already
using the services of Rabo Development's partner banks, says
Van Empel. "Examples include our activities for the Zambian
sugar trade of lllovo, together with Rabobank International
in London, and our loans to cotton farmers in Africa that
are suppliers to Louis Dreyfus. Another example is our agri
department that does supply chain finance restructuring. That
activity brings us to countries where we have no presence
through partner banks. For instance, in West Africa, where we
are involved in the cacao industry, and in Vietnam and China
in the coffee industry, among others, with Nestlé. Supporting
international wholesale customers is not our main objective
though. It is an attractive side effect of our local presence. There
are also certainly opportunities for other entities within the
group. In China, we are working together with Sarasin and
De Lage Landen, for instance."
There will be many opportunities for Rabobank over time
in developing countries, believes Van Empel, although
currently the demand for wholesale services is still limited.
"European and American companies are just starting to
discover Africa. That continent is now economically rising,
and Asian companies are moving in first. Chinese, Indian
and even Indonesian companies are getting on board.
This is also why relationship managers within Rabobank
Netherlands and Rabobank International should be aware
that Rabo Development has an excellent footprint in some
of these countries. A real strategie opportunity is to return
thefavour in the future. Instead ofassisting Dutch or Western
companies in emerging markets, we might be assisting
emerging companies from Asia, Latin America and even Africa
in their international expansion towards Europe and North
and South America. This requires a more holistic approach in
relationship management than currently practised."»
RI WORLD
