Corporate Finance
Participations
Private sector lending up 38%
with intermediaries and financial institutions.
Increasingly, bonds and other Rabobank
International products are offered to private
clients of local Rabobanks. There is great
interest in these products among clients.
An important growth market for Global Financial
Markets is the development and management
of structures and investment vehicles. In the
year under review, another broad range of
guarantee products was launched, including
the Rabo Europe Double Tracker, the Rabo
Japan Double Tracker and the Rabo AEX High
Yield Note III.
By structuring tailor-made products, Corporate
Finance supports the operations of businesses
and financial institutions. These products are
aimed, for instance, at balance sheet optimi
sation and cash flow management and are
supplemental to standard lending. In doing so,
Corporate Finance works closely with the local
Rabobanks and with other subsidiaries. Clients
are served from the Structured Finance and
Leveraged Finance product groups.
Structured Finance offers client-tailored products
aimed at both the asset and the liability side of
the balance sheet. In 2006, there was great
demand among clients for Rabobank's sale-
and-leaseback product for Green-labeled
greenhouses. With this product, Rabobank
gives more horticultural entrepreneurs access
to these greenhouses. In 2006, Rabobank
played a part in financing the construction and
operation of the 120 MW Q7 offshore wind
farm off the Dutch coast at IJmuiden.
Leveraged Finance is internationally involved in
financing private equity companies' acquisitions
that involve acquisition prices exceeding
EUR 50 million. On a global level, it is a major
player in the agricultural market, but it operates
in other sectors as well. Leveraged Finance
acted as a Mandated Lead Arranger in a large
number of transactions. In 2006, its portfolio
grew as a result of transactions with Heiploeg
and MW Brands, among others.
The activities of Participations comprise Rabo
Innovatiekapitaalfonds, Rabo Participaties and
Rabo Capital. Rabo Innovatiekapitaalfonds
invests in start-up enterprises that supply
innovative and sustainable products. Here,
amounts invested vary between EUR 125,000
and EUR 1.5 million. Rabo Participaties focuses
on growing enterprises in the middle segment
and invests between EUR 2 million and EUR 10
million per enterprise. In 2006, acquisitions by
Rabo Participaties included a participating
interest in the Luzac Holding training company.
Rabo Capital focuses on acquiring minority
interests in larger enterprises, investing between
EUR 10 million and EUR 100 million per trans
action. Besides these activities, Rabobank
International has a number of participations
in Gilde funds.
Lending to the private sector increased by 38%
in 2006 to EUR 74.7 (54.2) billion, despite the
weakening of the US dollar, which fell by 10%.
Lending to the food agri sector increased by
15% to EUR 26.5 (23.1) billion and this sector
now accounts for 36% of private sector lending.
Loans to the trade, industry and services sector
(TIS) increased by 57% to EUR 44.9 (28.5) billion.
The increase in private sector lending was
EUR 0.7 billion, with the total amounting to
EUR 3.3 (2.6) billion. The greater part of lending
was in America, at 35%. Of total lending, 13%
was in the Netherlands, with Europe excluding
the Netherlands accounting for 33%, Australia
New Zealand for 14% and Asia for 5%.
The international retail banking business
accounted for 24% of lending, with a 16%
increase to EUR 18.2 (15.7) billion in 2006.
Lending by the US retail activities grew by 85%
to EUR 4.2 (2.3) billion. The loan portfolio
contributed by Community Bank of Central
California amounted to EUR 0.8 billion.
Following three years of strong growth, lending
by ACCBank declined by 4% to EUR 6.2 (6.5)
billion in 2006.
Lending by sector, at year-end 2006
in EUR billions
2004 2005 2006
Food agri
TIS
Private individuals
Lending by region,
at year-end 2006
^^America 35%
Europe excluding
the Netherlands 33%
Australia and
New Zealand 14%
Netherlands 13%
Asia 5%
Wholesale banking and international retail banking 43
