Rentenbank plans to raise approximately EUR 10bn of medium and long-term funding in 2010. This figure includes all transactions in the capital markets with maturities of more than two years. The promotional bank will issue up to four benchmark bonds in the coming year in medium-term maturities with a minimum volume of EUR/USD 1bn each. In addition, Rentenbank plans liquid issues in other currencies. These transactions will be complemented by smaller public issues and private placements in various currencies and different structures. While domestic placement dominated the funding this year with a share of more than 50%, the share of funds raised in foreign currency is likely to go up again next year. According to Dr. Horst Reinhardt, the board member at Rentenbank responsible for capital markets, the second half of 2009 was already characterized by a normalisation in the markets for best credits. He expects that trend to continue into 2010.
In the year to date, Rentenbank has raised roughly EUR 10bn with maturities of more than two years from the capital markets. Due to the crisis in the financial markets, funding spreads were highly volatile. Average cost of funding, in line with Rentenbank's peer group, will be markedly higher than in the previous year. However, spreads in recent months have again approached the lower levels that prevailed prior to the Lehman insolvency. "Our strong position as a development agency of the Federal Republic of Germany with a strategic and sustainable market approach does ensure our unrestrained access to the markets even in a challenging environment", stated Dr. Reinhardt. The share of US dollar issuance in the medium and long-term funding markedly decreased to around 22% (54) while the share of euro-denominated issues more than tripled to 63% (20). The share of Australian dollar issues again remained stable at around 7%. With another 7%, issuance in Swiss francs played a relatively important role for the first time in several years. Small amounts (around 1%) were also raised in New Zealand dollar. As a result of market volatility, issuance was limited to significantly fewer currencies than in previous years.
In addition to its medium und long-term funding, the promotional bank issued notes off its EMTN (European Medium Term Note) Programme for short-term funding maturing or callable within two years for an amount of EUR 0.1bn (0.9). The average outstanding volume of the ECP (Euro Commercial Paper) Programme decreased to EUR 8.9bn (13.6).
Service: Rentenbank is Germany's agency for agribusiness. As partner to an important growth sector with global responsibility, the bank promotes this sector with various programmes. The bank is Triple A rated by the three major rating agencies and raises funds in domestic and international capital markets. With total assets of EUR 78.6 billion (as of June 30, 2009), Rentenbank is among the 20 largest German banks.
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.