Focus on benchmark bonds in euros and US dollars
The German development agency for agribusiness and rural areas intends to raise up to 50% of its medium-term and long-term funding volume by issuing benchmark bonds denominated in euros and US dollars. Additional liquid issuances and private placements in various currencies will complement the strategic benchmark transactions.
The euro was the most important issuance currency in 2025
This year, Rentenbank has raised approximately EUR 10.8 billion in the capital markets so far, including a Rentenbank euro benchmark bond with a volume of EUR 1.25 billion and a term of 7 ¼ years as well as a green bond of EUR 1 billion with a 7-year term. In addition, Rentenbank issued two US dollar benchmark bonds with a volume of USD 1.5 billion with a five-year term each. The average term of the bank’s issues remained unchanged from the previous year at 6.4 years.
Stability and success in challenging times
Despite challenging conditions, including geopolitical tensions, the impact of US tariff policy and the resulting market volatility, Rentenbank has managed its treasury activities highly successfully. In particular during periods of market uncertainty, investors value Rentenbank as a reliable safe haven, as reflected in the consistently strong demand for its bonds.
A highlight was the successful placement of the USD 1.5 billion Global Benchmark in May 2025. Nikola Steinbock, Rentenbank Chairwoman, emphasises: “In a year marked by challenging conditions, we successfully executed our funding programme. With our USD 1.5 billion Global Benchmark, we achieved a record order book of more than USD 10 billion – the largest in Rentenbank’s history and a true milestone.”
Further diversification of issuance currencies
In 2025, Rentenbank raised funds in seven currencies (2024: four currencies). The share of euro-denominated issuance amounted to 48% (2024: 55%), below the previous year’s level. The share of US-dollar issuance decreased slightly to 29% (2024: 32%), while the share of Australian-dollar issuance declined to 6% (2024: 8%). The share of pound-sterling issuance increased to 8% (2024: 5%). In addition, Rentenbank raised EUR 750 million via euro floaters. In 2025, the bank also issued bonds in Swiss francs for the first time since 2011, with CHF issuance accounting for 6% of its funding volume.
Nikola Steinbock notes: “The broad diversification of our issuance currencies provides Rentenbank with a very stable and resilient foundation and sustainably strengthens the flexibility and security of our funding. The successful reintroduction of the Swiss franc as an issuance currency this year underscores our ability to respond flexibly to investor needs and to strategically expand our refinancing portfolio. After more than a decade, we have once again been able to place CHF transactions in the market. This is a strong signal of our international presence.”
Euro is the dominant currency in the ECP Programme
Under its Euro Commercial Paper Programme (ECP Programme), Rentenbank issued bonds with terms of up to 364 days in eight different currencies. The most important issue currency in the ECP Programme was the euro, which accounted for 70% of the total issue volume. The average utilisation of the ECP Programme was EUR 8.8 billion (2024: EUR 11 billion).
Background
Landwirtschaftliche Rentenbank is Germany’s development agency for agribusiness and rural areas. Its promotional mandate covers not only agriculture and forestry, but also the entire food value chain, the increased use of energy from renewable sources, and the promotion of bio-economy solutions. Rentenbank attaches particular importance to the promotion of innovation, including research and development in universities, the early-stage financing of agriculture-related start-ups, and the market introduction and practical use of new technologies and products. Rentenbank’s promotional instruments are subsidies and special promotional loans. The special promotional loans are granted via the local banks of the ultimate borrowers on a competitively neutral basis. Rentenbank provides funding to banks, savings banks, and local authorities operating in rural areas. The Bank is a federal institution under public law whose capital stock was formed by contributions from the German agriculture and forestry sectors. It is subject to the German Banking Act (KWG) and is regulated by the Federal Financial Supervisory Authority (BaFin) and the Bundesbank. As one of the few triple-A rated institutions in Germany, Rentenbank raises funds in the capital markets.
This press release contains certain forward-looking statements that are based on current expectations, estimates, assumptions and projections of the Management Board and on the information currently available to it. These statements particularly include statements about our plans, strategies and prospects. Such forward-looking statements are identified by words such as ‘expects’, ‘anticipates’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’ and similar expressions. These statements are not to be understood as guarantees of future performance; instead, they are dependent on factors that involve risks and uncertainties and are based on assumptions that may prove to be incorrect. Except where required by law, we assume no obligation to update forward-looking statements after the publication of the present press release.
