Global client sectors and product groups
Global Financial Markets
Participations
CSR testing
Global Financial Markets operates in the international financial markets. Besides
customer-focused activities, this department handles the trade in money market products
for the day-to-day management of the liquidity position, the credit risk and the market risk
of Rabobank Group and its clients. Examples include currency and money market products,
bonds and derivative products. In addition, Global Financial Markets offers capital market
solutions by securitising or restructuring specific risks or cash flows of enterprises or
financial institutions.
In 2007, income for Global Financial Markets lagged behind that in previous years. Due to
the turmoil in the financial markets, the credit exposure related activities particularly were
under pressure. At the same time, the money market departments performed well. Global
Financial Markets benefited from the strong economic growth and the development of
capital markets in the Emerging Markets, Asia in particular.
In 2007, Rabobank International introduced a large number of investment products for
private clients of local Rabobanks, including the Rabo Familiebedrijven Certificaat for family
businesses, the Brazil High Yield Note and the Rabo Afrika Note.
Structured Finance
Structured Finance offers client-tailored products aimed at both the asset and liability sides
of the balance sheet. Even more than in 2006, clients were interested in Rabobank's sale-
and-lease-back product for Groen Label Kassen. With this product, Rabobank Group makes
these green-label greenhouses accessible to a broader group of horticulturalists.
In 2007, Rabobank Group was involved in the financing of several wind parks in the
Netherlands. Abroad too, Rabobank Group is involved in financing renewable energy, such
as a wind park in Belgium and a hydropower station in China.
Leveraged Finance
Leveraged Finance is 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. In 2007, its portfolio grew as a
result of transactions with Hendrix Genetics and Heiploeg, among others.
Rabo Private Equity, investments in Langholm and participations in Gilde funds
Rabo Private Equity invests in unlisted Dutch enterprises. Clients can turn to Rabo
Participaties or to Rabo Capital. Rabo Participaties focuses on growing enterprises in the
middle segment, participating for an amount between EUR 2 million and EUR 10 million per
enterprise. In 2007, acquisitions by Rabo Participaties included a participating interest in
Itho. Itho is a developer and producer of comfort enhancing and energy-saving climate
systems. Together, they will be working on energy-saving houses. Rabo Capital focuses on
acquiring minority interests in larger enterprises, investing between EUR 10 million and
EUR 100 million per transaction. In 2007, Rabo Capital's acquisitions included a participating
interest in Favory Convenience Food Group, a company established together with Wessanen
and comprising the production activities of Habek Snacks and Wessanen in food products
such as hamburgers, and deep-fried and halal snacks.
In 2007, Rabobank Group invested EUR 25 million in the Clean Tech fund of Emerald
Technology Ventures. The transaction is part of Rabobank Group's strategy to expand its
Clean Tech activities. Besides this investment, Rabo Private Equity is planning to collaborate
with Emerald Technology Ventures in the area of individual investment transactions.
Rabobank Group is one of the investors in Langholm, a private equity enterprise with
independent operations. Besides these activities, Rabobank International has a number of
participations in Gilde funds.
In 2007, Rabobank International introduced a corporate social responsibility testing system
for credit applications from clients and investment proposals made to Rabo Private Equity.
The chief aim is to prevent undesirable practices such as child labour, poor working
