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Rentenbank plans to raise approximately EUR 10bn in 2009

18 December 2008

Landwirtschaftliche Rentenbank plans to raise the equivalent of approximately EUR 10bn of medium and long-term funding in 2009. This figure includes all transactions in the capital markets with maturities of more than two years. The promotional bank will issue up to four benchmark bonds in the coming year in medium-term maturities with a minimum volume of EUR/USD 1bn. In addition, Rentenbank plans to issue liquid transactions in other currencies. These transactions will be complemented by smaller public issues and private placements in various currencies and different structures. Moreover, there will be a special focus on stronger domestic placement. According to Dr. Horst Reinhardt, the member of Rentenbank's Board of Management responsible for the capital markets, domestic investors are particularly gaining importance in a market environment characterised by high uncertainty.

In the year to date, Rentenbank has raised roughly EUR 11bn with maturities of more than two years from the capital markets. The cost of funding improved particularly in the first nine months in most currencies and maturities, in some cases significantly. Hence, cost of funding will decline slightly for the full year compared to 2007 despite more challenging issuing conditions in the 4th quarter. "In turbulent times investors even more appreciate our strategic funding approach as well as our stable and sustainable business model", stated Dr. Horst Reinhardt. The share of US dollar issuance in the medium and long-term funding markedly increased to around 56% (34) while euro-denominated issues dropped to 17% (34). Sterling issues accounted for 11% (14). The share of Australian dollar issues remained stable at around 7%. The remaining 16% of funding were raised in eight different currencies, in particular Norwegian krone, Swedish krona and New Zealand dollar.

In addition to its medium und long-term funding, the promotional bank issued notes off its EMTN (European Medium Term Note) Programme for short-term funding maturing or callable within two years for an amount of EUR 0.9bn (4.0). The average outstanding volume of the ECP (Euro Commercial Paper) Programme sharply increased to EUR 13.7bn (8.7).

 

Forward-Looking Statements:

This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of Rentenbank's management and currently available information. Such statements include, in particular, statements about our plans, strategies and prospects. Words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", variations of such words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. Except as required by law, Rentenbank does not have any intention or obligation to update publicly any forward-looking statements after they are made, whether as a result of new information, future events or otherwise.

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