Landwirtschaftliche Rentenbank, Germany's agency for agriculture and rural areas, plans to raise the equivalent of approximately EUR 11bn in medium and long-term funding in 2007. The figure includes all transactions in the capital markets with maturities and non-call periods of more than two years. Funding will most likely include EUR benchmarks and USD global bonds again, in total four transactions. They will be issued in intermediate maturities with a minimum size of EUR / USD 1bn. Furthermore, it is planned to issue liquid transactions in AUD and other currencies. Benchmark funding will be complemented by private placements and public transactions in various currencies using different structures. As in 2006, short-term funding is likely to include liquid USD and EUR notes.
Year to date Rentenbank has raised roughly EUR 10bn with maturities of more than two years. The cost of funding improved slightly in most foreign currencies and maturities. EUR denominated transactions experienced an above-average improvement. Cost remained stable for USD denominated short-term funding but decreased for longer maturities. USD issuance decreased slightly to 48 % (50) of the medium and long-term volume while the share of the EUR increased to 23 % (20). The share of the AUD declined to approx. 8 % (14), as Japanese retail investors' demand shifted to other currencies and structured issues. The remaining 21 % were raised in eight different currencies, mainly GBP, JPY and CAD.
In addition to its medium und long-term funding Rentenbank issued MTNs maturing or callable within two years and commercial papers for an aggregate volume of approx. EUR 28bn.
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