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Rentenbank Fiscal Year 2020

Rentenbank - scheduled funding volume 2021

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Germany's development agency for agribusiness and rural areas

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We provide funding to banks involved in financing agriculture, its upstream and downstream sectors and rural areas.

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Rentenbank and TechQuartier launch fourth bootcamp for startups in agribusiness

13 April 2021

Frankfurt. Rentenbank, Germany’s development agency for agribusiness and rural areas, and the Frankfurt-based innovation center TechQuartier are again hosting a 3-day bootcamp for startups. Applications can be submitted until 3 May 2021 at https://techquartier.com/rentenbank-bootcamp

Bootcamp der Rentenbank und des TechQuartier

The bootcamp is being held both online and on site in Frankfurt from 12 to 14 July 2021. The focus will be on sustainable innovations along the entire agribusiness value chain and is being expanded this year to include bio economy.

Workshops and one-on-one coaching sessions with experts from the fields of business, science and politics are all on the agenda. The workshop’s topics include growth strategies, teambuilding, data protection issues as well as techniques for negotiation, pitching and storytelling.

Applicants should meet the following criteria:

  • The business model contains innovative problem-solving techniques for AgTech, FoodTech or agricultural bioeconomy.
  • The business model is geared to providing products and services for other companies (i.e. B2B or B2B2C).
  • The commercial enterprise is located in Germany.

‘Promoting startups is a core element of our innovation strategy. The creativity behind new products and services allows agribusiness to be a troubleshooter for the important economic, social and ecological challenges we face. Our bootcamp offers technology-oriented startups an excellent platform from which to expand their business expertise and network,’ said Horst Reinhardt, Chairman of the Management Board at Rentenbank.

At the end of the bootcamp, the entrepreneurs will pitch their ideas to a live audience at an official ‘Demo Day’. The best pitches will win a cash prize. Previous years’ winners include:

  • Spoontainable makes edible dessert spoons from residual material from the food industry which replace disposable ones (first place in 2020).
  • Corvitac developed a camera system using AI technology to count pigs, for solving the problem of doing it manually and therefore inaccurately (second place in 2020).
  • Circular Carbon develops vegetable charcoal from recycled materials. They are a leading producer and supplier of biochar (third place in 2020)
  • BEEsharing is an online platform to help both beekeepers and farmers to arrange pollination by bees (winner in 2019).
  • Monitorfish works on real-time and early detection of fish diseases using artificial intelligence in aquaculture (winner in 2018).

Since 2018, 36 companies have taken part in the programme.  

‘We gained a great deal from the Bootcamp. We networked with startups from the agricultural sector, exchanged important personal experiences with other founders and mentors and presented our products to a wide specialist audience, which would otherwise never have become aware of us,’ said Markus Huhn, Managing Director of CORAmaps and participant on 2020’s bootcamp.

 


About:

Rentenbank
Landwirtschaftliche Rentenbank is Germany’s development agency for agribusiness and rural areas. Under its statutory promotional mandate, Rentenbank provides loans at favourable interest rates for agriculture-related investments via other banks on a competitively neutral basis. Rentenbank provides funding for banks, savings banks, and local authorities with regard to rural areas. The appropriation of profits is also subject to the promotional mandate. The Bank is a federal public law institution whose capital stock was formed by contributions paid by the German agricultural 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. The bank is one of the few triple-A rated institutions in Germany and raises funds primarily in the international capital markets. www.rentenbank.com Press Contact: Christof Altmann, Tel.: +49 (0) 69 2107393, altmann@rentenbank.de

TechQuartier
FFounded in 2016 in Frankfurt, Europe’s financial center, TechQuartier is a cross-industry innovation platform created to bring startups, corporates and up-and-coming talent together to work, meet, learn and collaborate on new technologies and digital business models. Our member-based community numbers more than 370 startups, 50 academic and corporate innovators and hundreds of potential founders. With international educational programs in technology, artificial intelligence and entrepreneurship, we are teaching young minds to discover how they can shape their economic future. We are also paving the way towards a European-centric data-ecosystem, both as one of Germany’s largest innovation hubs and as a leader of the Financial Big Data Cluster. www.techquartier.com Press Contact: Marie Landenfeld, Tel: +49 (0) 69 90016050, landenfeld@techquartier.com

 

 

Fiscal Year 2020 – Strong promotional business for Rentenbank, fresh impetus for sustainable growth, enhanced resilience in the face of the COVID-19 pandemic

29 January 2021

Frankfurt. Rentenbank can look back at 2020 as a year of strong promotional business. Germany’s development agency for agribusiness and rural areas has increased its new promotional business to EUR 11.2 billion. Its new business in low interest special promotional loans achieved EUR 6 billion. Business in the Rural Development promotional line increased most markedly. Rentenbank created fresh impetus for sustainable growth through two programmes initiated by the Federal Ministry of Food and Agriculture for the agricultural and forestry sectors. Even during COVID-19 pandemic, exceptionally high capital and collateralisation ratios underline the Bank’s resilience.

Rentenbank Schriftzug

‘The pandemic has shown that a secure food supply is vital and that agriculture is key to safeguarding it,’ stressed Horst Reinhardt, Chairman of Rentenbank’s Management Board. He went on to say that agricultural and forestry sectors could, at the same time, make a crucial contribution to protecting the climate and environment with modern, innovative technology. ‘Businesses are ready to invest if the underlying conditions are right,’ he added. This was reflected in the huge demand for funds from the two promotional programmes initiated by the Federal Ministry of Food and Agriculture, according to Reinhardt.


New promotional business is growing

Rentenbank increased its overall new promotional business by 3.5% to EUR 11.2 billion (EUR 10.8 billion in 2019; hereinafter, figures in brackets refer to the respective prior-year period or date). Funding of local authorities and banks operating in rural areas through registered bonds, promissory notes and securities grew from EUR 4.8 billion to EUR 5.2 billion. New business in special promotional loans achieved EUR 6.0 billion as in 2019.


Farmers are buying more machinery

2020 saw the lion’s share of new business in special promotional loans go to the Agriculture line with EUR 2.1 billion (EUR 2.2 billion). Farmers called for more funding for machinery. By contrast, the demand for funding for buildings and land purchases slumped.


Increased demand for Liquidity Assistance, albeit at a moderate level

In March 2020, Rentenbank opened its Liquidity Assistance Programme to enterprises operating within agribusiness which had been adversely affected by the COVID-19 pandemic. From April 2020, Rentenbank has additionally been providing liquidity assistance loans guaranteed by the Federal Ministry of Food and Agriculture. In total, at EUR 55.2 million, Rentenbank provided significantly more Liquidity Assistance loans in 2020 than in 2019 (EUR 10.2 million). Nevertheless, the comparatively moderate level has also shown that broad sections of the agricultural and forestry sectors have coped better with the economic implications of the pandemic than initially feared.


Funding for infrastructure in rural areas has increased significantly

Rentenbank saw particularly strong growth in its Rural Development promotional line. New promotional business rose by well over 7% to EUR 1.9 billion. The federal states’ development banks called for more global loans from Rentenbank. They use these loans mainly for financing infrastructure projects in rural areas.

In the Agribusiness promotional line, Rentenbank targets enterprises operating upstream and downstream from agriculture. New promotional business amounted to EUR 1.1 billion (EUR 1.2 billion). There was an increased demand for funding for machinery whereas the demand for loans for buildings and operational equipment lessened.

New business in the Renewable Energy promotional line was steady at EUR 0.9 billion (EUR 0.9 billion). A greater demand for wind power financing contrasted with a decline in demand for photovoltaic and biogas power plants.

In the Forestry promotional line, which was set up in May 2019, new business amounted to EUR 76.5 million (EUR 25.0 million). EUR 52.3 million of this was allotted to loans as part of the Federal Ministry of Food and Agriculture’s Forest Management promotional programme.


US Dollar becomes most important currency of issuance

In the 2020 financial year, Rentenbank raised EUR 11.4 billion in funds on the capital market, an increase of 11% compared to the previous year (EUR 10.3 billion). The Bank agilely sought funding in various currencies in order to acquire the funds for its Promotional Business at as favourable a price as possible. This rendered the US dollar the most important currency of issuance at 47% (16%), followed by the euro at 41% (59%). The share of pound sterling (GBP) sank back to 5% (17%). Commercial banks and central banks jointly made up the most important group of  investors with 79% (82%) of the volume placed.


Stable operating profit, IT upgrade fast-tracked

Operating profit before provision for loan losses and valuation reached EUR 208.9 million, about the level of the previous year (EUR 210.1 million). Net interest income dropped slightly by 1.2% to EUR 296.9 million (EUR 300.6 million), mainly due to DZ Bank withholding its dividend. DZ Bank has fallen in line with the ECB’s urgent recommendation to banks to refrain from distributing dividends in light of the Covid-19 pandemic. Administrative expenses increased by 4.1% to EUR 75.9 million (EUR 72.9 million), primarily due to major IT projects being expedited and increased personnel costs.


Capital ratios increased, resilience enhanced

At the end of the 2020 financial year, Rentenbank increased its Common Equity Tier 1 capital ratio in accordance with CRR to 31.0% (30.1%).

‘With our reinforced capital base, a loan portfolio collateralisation ratio of over 90% and a cost/income ratio of under 30%, we kept our banking operations running highly efficiently while at the same time further increasing our resilience in defiance of the pandemic. This makes Rentenbank more crisis-proof than ever before,’ said Reinhardt in closing.

 

Key figures 2020 (PDF)

 

Background information:
Landwirtschaftliche Rentenbank is Germany’s development agency for agribusiness and rural areas. Under its statutory promotional mandate, Rentenbank provides loans at favourable interest rates for agriculture-related investments via other banks on a competitively neutral basis. Rentenbank provides funding for banks, savings banks and local authorities operating in rural areas. The appropriation of profits is also subject to the promotional mandate. The Bank is a federal public law institution whose capital stock was formed by contributions paid by the German agricultural 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. The bank is one of the few triple-A rated institutions in Germany and raises funds primarily in the international capital markets.

This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of the Management Board and information currently available to it. These statements include, in particular, statements about our plans, strategies and prospects. Words such as ‘expects’, ‘anticipates’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’ and similar expressions are intended to identify such forward-looking statements. These statements are not to be understood as guarantees of future performance, but rather as being dependent on factors that involve risks and uncertainties and are based on assumptions that may prove to be incorrect. Unless required by law, we shall not be required to update forward-looking statements after their publication.

 

This press release as PDF

Rentenbank schedules total funding volume of up to EUR 11 billion in 2021.

18 December 2020

Frankfurt. After a very successful 2020, Rentenbank anticipates its total funding volume for 2021 to be up to EUR 11 billion with maturities of more than two years.

© Romolo Tavani / Fotolia

Focus is on Benchmark Bonds in EUR and USD

Germany’s development agency for agribusiness and rural areas intends to raise up to 50% of its medium and long-term funding via benchmark bonds in euros and US dollars. These strategic issuances are to be complemented by additional liquid issuances and private placements in various currencies, especially in euros, US dollars, pound sterling and Australian dollars.


Green Bond Curve in EUR in the planning

In September 2020, Rentenbank successfully issued its first benchmark Green Bond in euros and more are due to follow in 2021.

“This market segment is currently extremely bullish. In 2021, we will be focusing on establishing a Green Bond curve in euros,” said Horst Reinhardt, Chairman of the Management Board at Rentenbank.


USD most important currency of issuance in 2020

In the current year, Rentenbank has raised around EUR 11.4 billion in the capital markets, including two USD global benchmarks with maturities of 5 and 10 years. The average maturity of the issuances increased to 7.3 years (7.1 years in 2019; hereinafter, figures in brackets refer to the respective prior-year period or date).

Rentenbank raised funding in seven different currencies. The share of USD-denominated issuances increased sharply to 47% (16%), while the share in euros and pound sterling decreased to 42% (59%) and 5% (17%) respectively.


USD also dominant in the Euro Commercial Paper Programme

Under its Euro Commercial Paper Programme (ECP programme), Rentenbank issued bonds with maturities of up to 364 days in six different currencies. With a share of 93%, the US dollar remained the programme’s most important currency of issuance. The average utilisation of the ECP programme was EUR 7.3 billion (EUR 5.8 billion).

 

Background information:
Landwirtschaftliche Rentenbank is Germany’s development agency for agribusiness and rural areas. Under its statutory promotional mandate, Rentenbank provides loans at favourable interest rates for agriculture-related investments via other banks on a competitively neutral basis. Rentenbank provides funding for banks, savings banks and local authorities operating in rural areas. The appropriation of profits is also subject to the promotional mandate. The bank is a public law institution whose capital stock was formed by contributions paid by the German agricultural and forestry sectors. It is subject to the German Banking Act (KWG) and is regulated by the Federal Financial Supervisory Authority (BaFin). The bank is one of the few triple-A rated institutions in Germany and raises funds primarily in the international capital markets.

 

This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of the Management Board and information currently available to it. These statements include, in particular, statements about our plans, business strategies and prospects. Words such as ‘expects’, ‘anticipates’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’ and similar expressions are intended to identify such forward-looking statements. These statements are not to be understood as guarantees of future performance, but rather as being dependent on factors that involve risks and uncertainties and are based on assumptions that may prove to be incorrect. Unless required by law, we shall not be obliged to update forward-looking statements after their publication.

 

This press release as PDF

News

Bootcamp der Rentenbank und des TechQuartier

13 April 2021

Rentenbank and TechQuartier launch fourth bootcamp for startups in agribusiness

Rentenbank Schriftzug

29 January 2021

Fiscal Year 2020 – Strong promotional business for Rentenbank, fresh impetus for sustainable growth, enhanced resilience in the face of the COVID-19 pandemic

© Romolo Tavani / Fotolia

18 December 2020

Rentenbank schedules total funding volume of up to EUR 11 billion in 2021.

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