Significant growth across all promotional lines
“Following a mixed year for promotional activities in 2024, we are very pleased that in 2025 we set exactly the right course to further strengthen our promotional impact,” said Nikola Steinbock, Chairwomen of Rentenbank’s Management Board. “The strongest growth in new promotional loan business was recorded in the ‘Renewable Energy’ promotional line. In 2024 lending practically came to a standstill due to the high EU reference rate. Last year, however, we were once again able to refinance significantly higher levels of investment in renewable energy in rural areas, amounting to EUR 1.8 billion. We also achieved a major success in the ‘Agribusiness’ promotional line, where new business grew by 144.9% to EUR 844.4 million,” Nikola Steinbock continued.
Promotional business in the “Rural Development” promotional line increased to EUR 2.0 billion (2024: EUR 1.7 billion). In the “Agriculture” promotional line, loan commitments totalled EUR 1.9 billion, representing an increase of around 33% year on year. In this promotional line, the positive trend in the financing of livestock housing continued. Committed volumes rose to EUR 351.1 million (2024: EUR 291.6 million). The promotional programme “Conversion of livestock housing to improve animal welfare”, launched in 2024 within the “Future fields” promotional line, proved to be an important building block, with approximately EUR 57 million committed under the programme during the reporting year.
New business with banks via registered bonds, promissory notes and securities also increased significantly, reaching EUR 5.2 billion (2024: EUR 4.3 billion). In addition, investments in venture capital funds amounted to EUR 21.4 million (2024: EUR 48.5 million). “2025 was an intensive and successful year for us, our distribution partners and our end borrowers,” Nikola Steinbock concluded.
Promotional portfolio expanded with a clear focus on target groups
“But it is not only our special promotional loans that are being used intensively. Our new instruments aimed at reducing greenhouse gas emissions, such as the ‘Climate footprint interest bonus’ and the ‘Climate footprint grant’, have also met strong demand. This demonstrates the importance of creating incentives for key economic and societal issues in order to translate existing motivation into concrete action. With these two products, we make a significant contribution to achieving climate, environmental and resource protection objectives. By the end of the year, we had approved more than 800 applications for grants totalling EUR 0.8 million for the preparation of climate footprints and disbursed loans amounting to EUR 92.5 million with an additional interest bonus,” said Nikola Steinbock.
Expanded support for innovation
Rentenbank is consistently continuing its support for innovation along the entire value chain – from the initial idea and development through to market entry and practical implementation of new processes and products. In cooperation with the Federal Ministry of Agriculture, Food and Regional Identity (BMLEH), it continues to provide subordinated loans and innovation vouchers to early-stage agri-related start-ups from a Special Purpose Fund of the Federal Government. This programme is of particular importance for Germany’s start-up ecosystem as attracting investors is often especially challenging at this early stage.
At the end of 2025 a new set of guidelines under the federal Special Purpose Fund was announced to support the market launch of innovative drive systems for agricultural machinery. The promotional programme is scheduled to start in the first quarter of 2026. Loans offered on highly favourable terms, provided via local banks, will make investments in the use of electromobility on farms particularly attractive.
The ‘Growth Alliance’ AgTech & FoodTech start-up programme saw even greater demand in 2025 and was further expanded. Launched in cooperation with the BMLEH and Frankfurt-based TechQuartier, the Growth Alliance supports new ideas and business models through a range of modules, from the initial concept stage through to the accelerator phase. In addition, Rentenbank is actively involved as a partner in numerous initiatives aimed at promoting innovation and networking within the sector, such as the Future Forest Initiative in Blankenburg in the Harz region.
Euro remains most important issuance currency
To refinance its promotional business through special promotional loans and grants to end borrowers, as well as to refinance debt securities purchased from banks and local authorities, Rentenbank raised medium- and long-term funding totalling EUR 10.9 billion on the international capital markets in 2025 (2024: EUR 8.2 billion). This exceeded the expected issuance volume of EUR 10 billion and came very close to the planned issuance volume of EUR 11 billion. The most important issuance currency was the euro, accounting for 49% (2024: 55%). The share of US dollar issuance declined to 29% (2024: 32%). This included the issuance of a five-year USD global bond with a volume of USD 1.5 billion. With demand exceeding USD 10 billion and a spread of 7 basis points over US Treasuries, this was the most successful bond issuance in Rentenbank’s history to date. A total of 77% of the issuances were placed with international investors (2024: 79%). As in previous years, the largest investor groups were commercial banks, accounting for 49% (2024: 55%), and central banks, with a share of 31% (2024: 35%) of total medium- and long-term issuance volume.
Operating result below the previous year’s level
Operating profit before provision for loan losses and valuation amounted to EUR 86.6 million in 2025, below the previous year’s level (2024: EUR 161.6 million), primarily because of the significantly increased promotional activity. Net interest income declined accordingly, and due to higher refinancing costs overall, to EUR 228.8 million (2024: EUR 287.5 million). A second key factor was the planned increase in administrative expenses to EUR 146.2 million (2024: EUR 130.8 million). These higher administrative expenses are attributable, among other things, to the continued implementation of the IT roadmap and targeted investments in the Bank’s IT infrastructure. In addition, further staff are also required to implement the projects and initiatives aimed at the Bank’s continued development. Part of the planned increase in administrative expenses is therefore attributable to a larger workforce.
Capital ratio and leverage ratio remain at high levels
The total capital ratio (which is equivalent to the Common Equity Tier One (CET 1) capital ratio) declined to 32.5% as a result of higher own funds requirements following the initial application of CRR III, compared with the previous year (2024: 38.3%). However, the ratio remains well above the regulatory minimum requirement applicable to Rentenbank. The leverage ratio improved to 11.5% (2024: 10.2%).
Dr Marc Kaninke, CFO and CIO of Rentenbank, drew the following conclusion: “2025 was the year in which we made major progress in replacing our core banking system. Three quarters of the IT roadmap have now been implemented – a major joint effort that proved highly successful. The operating result highlights two key aspects. First, it reflects the strong demand from companies for our attractive special promotional loans, accompanied by a significant expansion of our grant activities. Second, it shows that we are investing responsibly ourselves, thereby further strengthening our resilience. This is not an end in itself but serves to safeguard the organisational and financial foundations of our promotional mandate – which is all the more important at a time when food security is once again becoming a topic of discussion. With our excellent financial ratios, we therefore see ourselves as very well positioned.”
Key Figures 2025 (PDF)
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 grants, subordinated loans and special promotional loans. The special promotional loans are granted via the lending 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.
