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Rentenbank plans to raise around EUR 10bn in 2011

16 December 2010

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.

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