Milestones in the history of Rentenbank
May 11, 1949
Landwirtschaftliche Rentenbank is established as a public law institution, with its registered office in Frankfurt am Main
1949 to 1958
The German agricultural and forestry sectors provides the bank’s capital stock
The 1950s and 1960s
Rentenbank grants farm loans and offers financing for the improvement of the agricultural system
The Bank’s promotional activities are funded primarily through public funds
from 1952
The Federal Republic’s Special Purpose Fund is set up. Rentenbank administers the fund as a trustee
1953
The first Landwirtschaftsbriefe (covered fixed-income bearer bonds) are issued to fund promotional loans
1972
‘Rural Infrastructure’ - Rentenbank’s first low-interest promotional line is launched
from 1973
The Federal Government introduces the ‘Joint Task for the Improvement of Agricultural Structures and Coastal Protection’ (Gemeinschaftsaufgabe Agrarstruktur und Küstenschutz (GAK)), which ushers in the end of the Bank’s funding through federal funds. Rentenbank then moves to rely on capital markets as its main source of funding
1975
The ‘Agriculture’ promotional line is launched
1985
As part of its ‘Agriculture’ promotional line, Rentenbank introduces particularly low interest rates for young farmers
from 1987
Rentenbank’s funding becomes increasingly more international
1991
In post-unification Germany, Rentenbank debuts a special promotional line geared toward the five new federal states (Länder)
from 1991
Rentenbank’s first unsecured debt securities are issued
1994
Rentenbank is awarded its first triple-A rating by Standard & Poor’s, followed by Moody’s and Fitch in 1995 and 1996 respectively
The Euro Medium Term Note Programme (EMTN) is launched
from 1994
Rentenbank starts awarding loans to banks with agribusiness in other EU member states at standard market terms
2000
The Euro Commercial Paper Programme (ECP) is launched
Rentenbank introduces a Medium Term Note Programme for the issuance of AUD-denominated bonds (Kangaroo bonds, AUD MTN)
2001
Rentenbank issues its first USD-denominated global bond, registered with the SEC under a special regulation of the Securities Act of 1933 (known as Schedule B) that can only be taken up by governments and their own issuers
2002
An amendment to Rentenbank’s Governing Law enhances the Federal Government’s supervisory role over Rentenbank
Rentenbank’s institutional liability (Anstaltslast) is affirmed by an understanding between the European Commission and the Federal Government, known as ‘Understanding II’
from 2005
Rentenbank expands its promotional offering to include environmental and consumer protection as well as renewable energy
Rentenbank provides funding for public-sector investments through the promotional banks of the Länder (federal states)
The Federal Republic’s Special Purpose Fund focuses on promoting agricultural innovations
from 2007
Zero-risk weighting: Under the Credit Risk Standardized
Approach, banks in Germany and other EU member states are not required to hold capital against receivables from Rentenbank
2008
Rentenbank updates its promotional programmes, and introduces a risk-appropriate interest system
2009 to 2010
Rentenbank launches a stimulus package for agribusiness to stabilise agricultural enterprises’ liquidity situation during the economic and financial crisis
from 2010
Support is initiated for aquaculture and fisheries in one integrated promotional line
from 2011
Funding of public-sector investments through the promotional banks of the Länder (federal states) is used to expand broadband coverage
from 2013
Rentenbank supports community wind farm projects
Rentenbank furthers its commitment to agricultural innovation by introducing a programme which offers grants
from 2014
An amendment to Rentenbank’s Governing Law states that the Federal Government guarantees Rentenbank’s obligations, thereby complementing the existing institutional liability (Anstaltslast)
Rentenbank debuts promotional loans for rural tourism
2015
Rentenbank’s Governing Law is amended to explicitly state that insolvency proceedings with respect to the Bank’s assets are inadmissible
2016
A framework agreement is reached with the Institute for Federal Real Estate (Bundesanstalt für Immobilienaufgaben (BImA)) about the ecological use of 550 ha of forest in the Wetterau region of central Hesse
2018
Rentenbank supports agribusiness startups as part of an entrepreneurial accelerator initiative
2019
The standalone ‘Forestry’ promotional line is launched
2020
First public Green bond
Implementation of the ‘Digitalisation and Technology for the Sustainable Forestry Management’ programme on behalf of the German Federal Ministry of Food and Agriculture (BMEL)
from 2021
Implementation of the ‘Agriculture Investment Programme’ on behalf of the German Federal Ministry of Food and Agriculture (BMEL)
Promotion of agriculture related startups in the early funding stage by subordinated loans combined with grants. The funds come from the Special Purpose Fund which Rentenbank manages, serving as a trustee of the German Government
References
Manfred Pohl and Andrea H. Schneider: Die Rentenbank. Von der Rentenmark zur Förderung der Landwirtschaft, Munich 1999
Christiane Gothe (Ed.): An der Seite der Bauern. Die Geschichte der Rentenbank, Munich 2014