Presentation to Rural Development Conference

Peter Faulkner.

Presentation Outline

• ACCBank / Rabobank• Loan assessment criteria.• Repayment Capacity• Equity Release• Quality of Security• What to do with the money?• Level of Risk• Your views

ACCBank Current Position.

• 40 Branchs and 5 Business Banking units.

• 600 staff of which 35 are Agr.graduates.

• Change of strategy in 2000.

• Focus on SME and Agri sectors.

• Wholly owned subsidiary of RaboBank since March 2002.

RaboBank

• RaboBank is the Worlds only non-government backed bank with AAA rating from all the major rating agencies.

• World leader in many food and agribusiness markets.

• Ranked among the world’s top 30 banks.• RaboBank was voted the worlds safest bank in

2001 and 2002.

Mission Statement‘To be clearly identified as

the market leader in delivering

customer value

to the Business & Agri Sectors’

Equity Release

• Loan to Value eg. 80%• 100 acres valued at €1m• €200k existing secured debt• €600k equity• Must show repayment capacity• Discount Factor • Principal+Interest• Interest Only( 5 years)

Repayment Capacity

• Good Banking Discipline.

• Evidence of good planning and budgeting.

• Security available to cover significant exposures.

• RCR

Loan Assessement Criteria

Proposition

3 C’s

Credit Grading

Credit Bureau

3 C’s

•Character

•Collateral

•Capacity

Investing Off Farm

• Get professional advice.• Residential Property.• Commercial Property (Home and abroad).• Yields + Capital Appreciation• Stamp duty, legal costs, planning regulations etc.• Syndicated Investments• Stock Market .

Key Messages.• Research your Investment fully

• Be aware of the risks

• Longer term, higher reward

• Know what you can afford

• There is always another project

• Talk to ACCBank