2. Leading role in global food and agribusiness
International wholesale banking
clusters of customers operating in the same sector, the advantage being that the specialists
of the Client Service Teams are quicker to share sector-specific knowledge, thereby creating
more focus on the provision of customer services at strategic level. The goal is to achieve
excellence in customer solutions created in unison with all divisions of Rabobank Group.
Important deals in the top segment in 2012 included the financing of, and advice provided in,
the acquisition of CI 000 by Jumbo supermarkets and the restructuring of Stork/Fokker.
In addition, Rabobank International helped Ziggoand DE Master Blenders 1753 prepare for
their respective IPOs. Total income from Large Corporate clients was as expected in 2012.
The loan portfolio continued to show sustained growth, which makes it a key driver of income.
There are fewer strategic transactions, including mergers and acquisitions, and capital market
transactions, and this market is characterised by harsh competition. Commission income on
these products lagged behind as a result despite a further improvement in market position.
Rabobank also wants to be the go-to bank for wholesale clients of the local Rabobanks.
Some of the products and services that these customers purchase are offered locally and
others, including risk management products (such as currency derivatives) and capital market
products (such as share and bond issues), are offered by Rabobank International. Rembrandt
Fusies Overnames is there to help customers of local Rabobanks in their mergers and
acquisitions. Mergers and acquisitions that are of greater scale and complexity are handled
by a centrally operating team within Rabobank International.
Rabobank International also offers a broad range of research services as well as assistance to
Rabobank customers in their transnational operations via International Services. These services
are available in an increasing number of countries, including Brazil, India and the United States.
These services will again be stepped up in 2013. International Services also focuses specifically
on foreign businesses that want to create a presence in the Netherlands.
Rabobank has been active in the food and agribusiness for many years. The knowledge of this
sector is more or less engrained in our DNA. On an international level, Rabobank utilises its
specialist knowledge of the food and agribusiness to create value for the customer and the
bank. Rabobank shares its in-depth knowledge of the supply chain with customers by having
account managers and Food and Agri Research (FAR) engage in close cooperation. Combined
with an extensive network and a broad banking service offering, this makes Rabobank the
global leader in financial services for businesses in the food and agri sector.
Rabobank facilitates the strategic dialogue with the top segment of the global food and
agribusiness by actively utilising knowledge of food and agri for the benefit of customers.
The strategic dialogue is fed by sharing the latest developments in the market and the
presence of a clear vision of the future of the industry. Seven specific food and agri sectors
have been defined to channel this knowledge and vision. Each of these sectors is managed by
a Global Sector Head who works in close collaboration with representatives of Mergers
Acquisitions and Food and Agri Research. The sectors encompass different product groups.
Client Service Teams, which operate at customer level, are made up of an account manager,
product specialists, a FAR specialist and, where appropriate, an M&A expert. This is how the
knowledge of the market, sector, products and customer is brought together to create service
excellence. The focus on food and agri sectors and customers has led to a better strategic
dialogue with customers, culminating in an increase in the number of large customers, more
than 40 new customers and further growth of the food and agri portfolio.
In order to provide the best possible service to customers, Rabobank International has forged
partnerships with Rothschild for mergers and acquisitions, and with Jefferies for the issue of
bonds. An important transaction in 2012 was the cross-border merger between Milklink and
Aria Foods, two dairy cooperatives. Rabobank was a valued advisor in this merger between
the UK's leading dairy company and one of the largest dairy companies in Denmark.
Rabobank also played a prominent role in the refinancing of Burger King. Another special
transaction in 2012 was the just-in-time facility and a structured inventory product (SIP), an
innovative solution for optimising working capital, for Barry Callebaut.
Brazil is one of the large, fast-growing food and agri markets where Rabobank is seeking
expansion. An agency desk for syndicated loans will be opened in Sao Paulo to make sure that
growth is sustainable. The agency desk will serve to further structure solutions for the growing
demand for these types of loans while centralising the related administrative duties.
44 Annual Report 2012 Rabobank Group
