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History of Rentenbank



May 11, 1949    
Rentenbank is established as a public law institution


1949 to 1958    
The bank’s capital stock is contributed by the agricultural and forestry sector of West Germany


The 1950s and 1960s
Rentenbank extends farm loans and offers financing for the improvement of agricultural structures

The promotional activities are financed primarily by public funds


From 1952
Acting as a trustee of the Federal Government, Rentenbank is mandated to manage the newly established Special Purpose Fund of the Federal Republic. The fund provides financial resources to promote innovations in agriculture, forestry, horticulture, and the fishing sector


1953
The first Landwirtschaftsbriefe (covered fixed-rate bearer bonds) are issued to fund promotional loans


1972
The bank’s first low-interest promotional loan programme, Rural Infrastructure, is launched


From 1973
The Federal Government introduces the Joint Task for the Improvement of Agricultural Structures and Coastal Protection (GAK), marking the end of the bank’s public funding. Rentenbank moves to rely on the capital market as its main source of funding


1975
Rentenbank’s second promotional loan programme 'Agriculture' is established


1985
The Agriculture promotional loan programme allows young farmers to obtain loans at particularly low interest rates


From 1987
Rentenbank’s funding activities become increasingly international


1991
Rentenbank debuts a special promotional programme for the new federal states (Länder)

The bank’s first unsecured debt securities are issued


1994
Rentenbank is awarded its first triple-A rating by Standard & Poor’s, followed by Moody’s in 1995 and Fitch in 1996

The Euro Medium Term Note Program (EMTN) is established


From 1994
Granted on market terms, promotional loans become available to banks in other EU countries


1999
Rentenbank celebrates its 50th anniversary


2000
The Euro Commercial Paper Program (ECP) is launched

Rentenbank introduces a Medium Term Note Program (AUD MTN) for the issuance of AUD-denominated bonds (Kangaroo bonds)


2001
Rentenbank issues its first USD-denominated global bond, registered with the SEC under Schedule B of the Securities Act of 1933 applicable to foreign governments and their political subdivisions


2002
An amendment to Rentenbank’s Governing Law strengthens the Federal Government’s supervisory role over Rentenbank

The legality of institutional liability (Anstaltslast) of Rentenbank is confirmed by an understanding between the European Commission and the Federal Government, known as Understanding II


From 2005
Rentenbank expands its promotional offerings to include environmental and consumer protection as well as renewable energy

Funds are provided for municipal investments through the promotional institutions situated in the Länder

The Special Purpose Fund of the Federal Republic focuses on promoting agricultural innovations


2005 to 2007
The Federal Government introduces a federal programme for improving the welfare of laying hens


From 2007
Zero-risk weighting: under the Credit Risk Standardized Approach, banks in Germany and other EU countries are not required to hold capital against claims on Rentenbank


2008
A new structure of the promotional programmes as well as a risk-adjusted interest system are introduced


2009 to 2010
Rentenbank launches a stimulus package to secure the liquidity of agricultural enterprises during the economic and financial crisis


2010
Rentenbank introduces its Aquaculture and Fisheries promotional line


From 2011
Rentenbank provides funds for the expansion of broadband coverage in rural areas through the promotional institutions of the federal states


From 2013
Community wind farm projects are included in the bank’s promotional offering

Rentenbank furthers its commitment to agricultural innovation by introducing a grant programme


From 2014
An explicit guarantee from the Federal Republic of Germany for the bank’s obligations is included in Rentenbank’s Governing Law. The guarantee complements the existing institutional liability

Rentenbank debuts promotional loans for rural tourism


2015
Rentenbank’s Governing Law is amended to explicitly state that insolvency proceedings with respect to the bank’s assets are inadmissible

References

Manfred Pohl and Andrea H. Schneider: Die Rentenbank. Von der Rentenmark zur Förderung der Landwirtschaft, Munich 1999

Christiane Gothe (Ed.): An der Seite der Bauern. Die Geschichte der Rentenbank, Munich 2014

History of Rentenbank as PDF