We use cookies on our website. Some of them are necessary for the website to function, while others are not necessary and help us to improve and analyze our online offering. To the extent necessary for these purposes, we pass on your data (e.g. your IP address, your usage behavior on our website) to our partners. Some partners reserve the right to further process your transmitted information for their own purposes (e.g. to display personalized advertising, to improve their own services). Our partners may combine the information with other data that you otherwise provide to our partners (e.g. on other websites, in apps). Your information can also be linked across devices. We would like to point out that our partners' servers may be located in third countries where an equivalent level of data protection may not be guaranteed.
You can activate the functions of the website for all of the above purposes ("Accept Cookies") or only for the purposes you clicked on ("Allow selection"). You can also refuse all cookies (“Reject Cookies”). Once you have given your consent, you can freely revoke it at any time and with effect for the future using this cookie banner.
Further information about the processing of your data can be found in our data protection information. You can find our imprint here.
Manage cookie settings
You can read how we process this data in our Data protection
To view this content, please activate the respective setting in the Consent Banner.
Landwirtschaftliche Rentenbank plans to raise approximately EUR 10bn of medium and long-term funding in 2011, slightly less than in 2010. This figure includes all transactions in the capital markets with maturities of more than two years. The development agency will issue up to four benchmark bonds in the coming year in medium-term maturities with a minimum volume of EUR/USD 1bn each. New issues and taps of AUD Kangaroo bonds are also of particular importance as part of the long-term funding strategy. Tailor-made syndicated issues and private placements in various currencies will complement the strategic transactions. The share of funds raised in foreign currency is likely to exceed the current year's level of 65%. According to Dr. Horst Reinhardt, the board member at Rentenbank responsible for capital markets, the market backdrop for euro issuance could become a bit more challenging in 2011. "However, due to our strong and still growing global investor base we expect that the over-all funding cost will remain stable", he explains.
In the year to date, Rentenbank has raised roughly EUR 10.6bn with maturities of more than two years from the capital markets. Average cost of funding for 2010 are significantly lower than in the previous year, lying close to the attractive level that was established prior to the Lehman insolvency. "Investors appreciate our limited and stable funding needs as well as our strategic market approach. As a development agency of the Federal Republic of Germany with a sustainable business model, investors also acknowledge that we are a safe haven regarding solvency", stated Dr. Reinhardt. The share of US dollar issuance in the medium and long-term funding markedly grew to around 42% (21%) while the share of euro-denominated issues dropped to 35% (65%). With 16% (7%) the share of Australian dollar issuance reached a record level. Other curren-cies accounted for 7% (7%) in total.
Via its ECP (Euro Commercial Paper) Programme, Rentenbank issues bearer notes with maturities up to 364 days. The average outstanding volume reached EUR 10.3bn (8.9bn) in 2010.
Service: Landwirtschaftliche Rentenbank is Germany's development agency for agribusiness. Within the framework of its legal promotional mandate, the direct federal institution under public law provides low-interest loans for agriculture-related investments via other banks in line with its competitive neutrality. The appropriation of profits is subject to the promotional mandate as well. The bank mainly raises funds in international capital markets and is Triple A rated by the three major rating agencies.
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.