Navigation and service of the Landwirtschaftlichen Rentenbank

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Milestones in the history of Rentenbank

May 11, 1949 

Landwirtschaftliche Rentenbank is established as a public law institution, with its registered office in Frankfurt am Main

1949 to 1958

The German agricultural and forestry sectors provides the bank’s capital stock

The 1950s and 1960s

Rentenbank grants farm loans and offers financing for the improvement of the agricultural system

The Bank’s promotional activities are funded primarily through public funds

from 1952

The Federal Republic’s Special Purpose Fund is set up. Rentenbank administers the fund as a trustee

1953

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

1972

‘Rural Infrastructure’ - Rentenbank’s first low-interest promotional line is launched

from 1973

The Federal Government introduces the ‘Joint Task for the Improvement of Agricultural Structures and Coastal Protection’ (Gemeinschaftsaufgabe Agrarstruktur und Küstenschutz (GAK)), which ushers in the end of the Bank’s funding through federal funds. Rentenbank then moves to rely on capital markets as its main source of funding

1975

The ‘Agriculture’ promotional line is launched

1985

As part of its ‘Agriculture’ promotional line, Rentenbank introduces particularly low interest rates for young farmers

from 1987

Rentenbank’s funding becomes increasingly more international

1991

In post-unification Germany, Rentenbank debuts a special promotional line geared toward the five new federal states (Länder)

from 1991

Rentenbank’s first unsecured debt securities are issued

1994

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

The Euro Medium Term Note Programme (EMTN) is launched

from 1994

Rentenbank starts awarding loans to banks with agribusiness in other EU member states at standard market terms

2000

The Euro Commercial Paper Programme (ECP) is launched

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

2001

Rentenbank issues its first USD-denominated global bond, registered with the SEC under a special regulation of the Securities Act of 1933 (known as Schedule B) that can only be taken up by governments and their own issuers

2002

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

Rentenbank’s institutional liability (Anstaltslast) is affirmed by an understanding between the European Commission and the Federal Government, known as ‘Understanding II’

from 2005

Rentenbank expands its promotional offering to include environmental and consumer protection as well as renewable energy

Rentenbank provides funding for public-sector investments through the promotional banks of the Länder (federal states)

The Federal Republic’s Special Purpose Fund focuses on promoting agricultural innovations

from 2007

Zero-risk weighting: Under the Credit Risk Standardized

Approach, banks in Germany and other EU member states are not required to hold capital against receivables from Rentenbank

2008

Rentenbank updates its promotional programmes, and introduces a risk-appropriate interest system

2009 to 2010

Rentenbank launches a stimulus package for agribusiness to stabilise agricultural enterprises’ liquidity situation during the economic and financial crisis

from 2010

Support is initiated for aquaculture and fisheries in one integrated promotional line

from 2011

Funding of public-sector investments through the promotional banks of the Länder (federal states) is used to expand broadband coverage

from 2013

Rentenbank supports community wind farm projects

Rentenbank furthers its commitment to agricultural innovation by introducing a programme which offers grants

from 2014

An amendment to Rentenbank’s Governing Law states that the Federal Government guarantees Rentenbank’s obligations, thereby complementing the existing institutional liability (Anstaltslast)

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

2016

A framework agreement is reached with the Institute for Federal Real Estate (Bundesanstalt für Immobilienaufgaben (BImA)) about the ecological use of 550 ha of forest in the Wetterau region of central Hesse

2018

Rentenbank supports agribusiness startups as part of an entrepreneurial accelerator initiative

2019

Rentenbank celebrates 70 years of successfully promoting agriculture and rural areas

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