affinity to the food agri sector and offering complex financial products and services to large cooperatives
and enterprises in the food agri industry.
In Asia, a great deal of effort was spent on the integration of the Indonesian Hagabank and Bank
Hagakita in 2008. Both banks have extensive networks with around 120 branches in Bali, Java and
South Sumatra.
Strong performance by Rabobank's foreign Internet banks
The Direct Banking activities in Belgium, Australia, Ireland and New Zealand delivered a strong
performance despite the turbulence in the market. In these uncertain times, many Belgian savings
clients decided to open an account at Rabobank. Client numbers grew also in Ireland, Australia and
New Zealand, albeit on a more limited scale. At year-end 2008, 293,000 (197,000) clients availed
themselves of the services provided by the four foreign Internet banks. As a result of these activities,
savings increased by 30% to EUR 6.6 (5.1) billion.
Corporate banking: services to internationally active clients expanded
In the Netherlands, Rabobank International serves large enterprises through Corporate Banking, while
supporting the local Rabobanks in their services to the corporate market. In order to improve its services
to internationally active Dutch SME clients, a project was started with the aim of expanding the services
and making them more easily accessible. This involves collaboration with third parties. For example,
Rabobank International started partnerships with Deutsche Bank and with the Raiffeisen Zentralbank,
in Austria, in 2008. Deutsche Bank fulfils the role of processor in cash management and has opened
its network to internationally active Rabobank clients. Raiffeisen Zentralbank is to ensure improved
facilitation of the total international service provision by local Rabobanks in Central and Eastern European
countries. Services to the internationally active Dutch SME clients has since shown strong growth that is
expected to continue in coming years.
Abroad, the primary focus of the Corporate Banking activities is on the food agri sector. In addition,
Rabobank International has invested in specific knowledge in the area of Trade Commodity Finance.
Its Trade Commodity Finance department has a global reach and serves clients that operate the market
for agricultural products and, on a limited scale, other commodities as well. This department also offers
a large number of export finance products. This resulted in substantial growth of these activities in 2008.
Professional products
Global Financial Markets operates in the international financial markets. Besides customer-focused
activities, this business entity 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. Besides currency and money market products, bonds and energy products, Global Financial
Markets offers capital market solutions by securitising or restructuring specific risks or cash flows of
enterprises or financial institutions.
Leveraged Finance is involved in financing acquisitions by private equity companies. On a global level,
it is a major player in the agricultural market but it operates in other sectors as well. Its portfolio grew,
although the number of transactions declined in the second half of 2008 as a result of the financial crisis.
Structured Finance offers client-tailored products aimed at both the asset and liability sides of the
balance sheet. The Renewable Energy Infrastructure Finance department operates in the sustainable
sectors wind, solar, biofuels and biomass.
Participations
Under the Rabo Participaties and Rabo Capital labels, Rabobank Group's investment unit Rabo Private
Equity focuses on medium-sized Dutch enterprises. Its Rabo Ventures label is focused on young
enterprises operating in the area of clean technology.
Rabo Participaties focuses on growing enterprises in the middle segment, contributing amounts
between EUR 2 million and EUR 10 million per enterprise. In 2008, acquisitions by Rabo Participaties
included a participating interest in Oskomera Group, a Dutch company that supplies and installs
complex facade and steel structure projects and also specialises in solar power systems.
Rabo Capital acquires interests in larger enterprises, investing between EUR 20 million and EUR 50
million per transaction. In 2008, it acquires an equity interest in Iddink, a leading Dutch distributor of
school books, with offices in Ede, the Netherlands.
Rabo Ventures is a venture capital fund with international operations that supplies risk-bearing capital
to fast-growing enterprises in the clean technology sector. Clean technology is the collective term for
36
Rabobank Group Annual Report 2008
