Germany's development agency for agribusiness and rural areas Landwirtschaftliche Rentenbank
We provide funding to banks involved in financing agriculture, its upstream and downstream sectors and rural areas. These ‘promotional loans’ are offered at particularly favorable interest rates.
We raise funds for promotional lending through borrowings or the issuance of securities on domestic and international capital markets. The EUR 60 billion Euro Medium Term Note (EMTN) programme, launched in 1994, and the EUR 20 billion Euro Commercial Paper (ECP) programme, launched in 2000 are of equal importance within the bank's international funding activities.
In 2001, Rentenbank started issuing global bonds registered with the U.S. Securities and Exchange Commission (SEC). The SEC registration was achieved under "Schedule B", Section 7 of the 1933 Securities Act, which is only available to sovereign and sub-divisions thereof. Domestic bond issuance documentation in several countries such as Australia, Canada, Japan, New Zealand and Norway is a further indication of how diversified our international funding sources are. In addition, we have excellent access to the domestic investor base with registered bonds (Namensschuldverschreibungen) and promissory notes (Schuldscheindarlehen).
Rentenbank's long-term obligations are triple A-rated by Moody's Investors Service, Standard and Poor's and Fitch Ratings. The ratings reflect the Federal Republic of Germany’s institutional liability (Anstaltslast) which ensures full payments on all obligations. In addition to the Anstaltslast, the bank benefits from the guarantee of the Federal Republic of Germany, which came into force on January 1, 2014 and covers all Rentenbank’s existing and future liabilities. The guarantee was added to Rentenbank's governing law in response to the stricter requirements of Basel III rules for obtaining a zero percent risk weighting. The ratings also take into account the low risk of the bank's loan portfolio, its stable profits and strong capitalization.
Rentenbank is a public law institution which was set up by statute in 1949. The German federal government exercises legal supervision through the Federal Ministry of Food and Agriculture which takes decisions in concert with the Federal Ministry of Finance.
Since mid-2019, the financial supervision of Rentenbank and other legally independent promotional banks in Germany has moved back to the Federal Financial Supervisory Authority (BaFin) and Deutsche Bundesbank (in the interim this responsibility had lain with the European Central Bank with the supported of BaFin and the Bundesbank.
The bank's capital base was amassed from contributions made by the German agricultural and forestry sectors between 1949 and 1958. Therefore, any unappropriated profits, which remain after allocations to reserves, may only be used to promote agriculture and rural areas. This is done through a variety of measures e.g. Edmund Rehwinkel Foundation and sustainability projects for example.
The three major rating agencies have assigned their highest ratings (AAA and Aaa) to Rentenbank’s long-term obligations.
Our loans can be used for agriculture-related projects of all kinds, and for providing finance in rural areas. The scope of our lending activity ranges from agriculture, forestry, wine-growing, horticulture and fisheries through to the manufacturing of agricultural supplies along with commercial and service businesses closely linked to agriculture and forestry. In addition to financing businesses involved in the food industry, we also fund other businesses and institutions operating upstream and downstream from agriculture.
In addition, Rentenbank awards grants for innovations and applied research projects, as well as for projects and institutions that are of particular importance to agribusiness and rural areas. Rentenbank’s Rehwinkel Foundation supports scientific research, promotes events that foster collaboration between agricultural science and industry, and awards scholarships to students on relevant Master’s programmes. Rentenbank focuses its efforts on promoting innovation, in particular startups that are developing new, tech-based business ideas that can play a vital role in driving innovation in agribusiness.