Landwirtschaftliche Rentenbank

Landwirtschaftliche Rentenbank
Institute under Public Law
Industry Finance and Insurance
Founded 1949
Headquarters Frankfurt am Main, Germany
Key people
 board of managing directors: Dr. Horst Reinhardt (Speaker), Hans Bernhardt, Dietmar Ilg
Products Financial Services
Total assets 90.8 billion EUR (2017 YE)
Number of employees
 285 (2017)
Website www.rentenbank.de
Frankfurt, Rentenbank, Seitenflügel

Landwirtschaftliche Rentenbank is Germany's development agency for agribusiness and rural areas.[1] The bank has its registered office in Frankfurt am Main. With its low-interest loans, Rentenbank promotes a wide range of investments in agriculture and the associated upstream and downstream industries as well as in rural areas. The funds are raised in the international capital markets. Rentenbank was established in 1949 as a central refinancing institution with a statutory promotional mandate. The Federal Republic of Germany has an institutional liability (Anstaltslast) and has issued a guarantee for the liabilities of Rentenbank.[2] Rentenbank is a successor to Deutsche Rentenbank, established as the currency issuer of the Rentenmark in 1923 to combat hyperinflation, and Deutsche Rentenbank Kreditanstalt (RKA), a major lender in the agricultural sector formed in 1925.[3]

Promoting agribusiness and rural areas

Rentenbank’s special promotional loans are geared towards businesses in the agricultural, horticultural, viticultural and forestry sectors, including manufacturers of agricultural inputs as well as agriculture-related trade and service companies. The bank also finances projects in the food industry and the associated upstream and downstream industries. Further, Rentenbank promotes civic engagement and public investments in rural areas. The bank’s statutory promotional mandate explicitly includes promoting renewable energy, renewable agricultural resources, organic farming, agriculture-related environmental and consumer protection, as well as animal welfare. The loans are extended via other banks on a competitively neutral basis.[4]

Funding

Rentenbank funds its promotional business primarily in the international capital markets through loans and the issuance of securities. The bank’s most important funding instruments comprise the Euro Medium Term Note (EMTN) program, the Euro Commercial Paper (ECP) program, as well as global bonds that are registered with the US stock market regulator SEC. The bank’s issues are mostly denominated in US dollars and euros. The three major rating agencies have assigned their highest ratings (AAA and Aaa) to Rentenbank’s long-term obligations.[5]

References


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