Rabobank acquires Farmer Mac portfolio
May 28, 2009 3:19 PM
Rabobank has purchased a $354 million portfolio of agricultural loans from the Federal Agricultural Mortgage Corporation (Farmer Mac).
The acquisition was conducted by two of Rabobank Group’s U.S. subsidiaries: Rabo AgriFinance, the U.S. agricultural finance arm, and Rabobank, N.A., the California community bank.
“Rabobank’s purchase of this portfolio from Farmer Mac is a clear demonstration of our continued commitment to invest in American agriculture and expand our business,” said John Ryan, president and CEO for Rabo AgriFinance.
“As a part of the Rabobank Group, we have the resources and flexibility to complete this acquisition, while providing Farmer Mac with added liquidity. This transaction further advances our mission to be a premier agricultural lender in America.”
The portfolio purchased by Rabobank includes approximately 1,000 agricultural loans of various sizes and terms, originated by many different lenders, including Rabobank. The borrowers operate in all major sectors of agriculture and are located throughout the entire United States.
“We’re excited about this opportunity to continue building our agriculture client base in California, especially amongst medium and small sized farmers,” stated Aitor Ezcurra, chief commercial officer and head of agricultural banking for Rabobank N.A.
“Rabobank, N.A offers a full range of financial services to help farmers grow their business and this acquisition is a perfect fit for us.”
