‘Sentiment in the green sector is improving, and with it the willingness to invest. That’s evident from both our current Rentenbank Agribusiness Barometer survey and the figures for our promotional business for the first half of 2025. The reduced EU reference interest rate is also having a noticeable impact, particularly in the field of renewable energy,’ said Nikola Steinbock, Chairwoman of Rentenbank’s Management Board. ‘If we now succeed in setting the right incentives and continue to adjust the framework conditions in such a way that willingness to adapt and modernise increases, we will be taking a major step forward.’ Steinbock added: ‘Investments are made where they secure the future of a business – in other words, where they are viable from an entrepreneurial perspective. Rentenbank supports farms in investing to boost productivity and thereby competitiveness – as well as in activities aimed at reducing greenhouse gas emissions. Since 1 July, we have also been providing support for advisory services related to creating a farm-level carbon footprint. These services can help collect key data and develop economically viable measures to reduce emissions. In addition, farms can use the carbon footprint to better meet the growing expectations of retailers and consumers.’
Growth across almost all special promotional lines
In the first half of 2025, Rentenbank recorded a significant increase in new business with special promotional loans. The volume rose from EUR 1.6 billion in the prior-year period to EUR 2.8 billion – an increase of 77.3%.
In the Agricultural promotional line, new business grew by 48.4%, from EUR 663.4 million to EUR 984.2 million. The positive trend observed in the previous year in investment in livestock housing continued, with the future-oriented area of modifications to existing stalls to enhance animal welfare making a particularly strong contribution. The Agribusiness promotional line also saw substantial growth, with new business increasing by 151.0% to EUR 442.8 million (H1 2024: EUR 176.4 million). The Renewable energy promotional line developed especially dynamically: New business surged to EUR 636.6 million, up from EUR 40.7 million in the first half of 2024. This growth was driven by the lower EU reference interest rate, which had a clearly positive impact.
Ongoing commitment to innovation funding
Rentenbank is continuing to promote innovation along the entire value chain – from initial development and pilot projects to the broader adoption of new processes and products. In cooperation with the Federal Ministry of Agriculture, Food and Regional Identity (BMLEH), Rentenbank provides subordinated loans and innovation vouchers from the Federal Government’s Special-Purpose Fund to agri-related start-ups in their early stages.
Through the AgTech & FoodTech start-up programme ‘Growth Alliance’, which has been further expanded in collaboration with BMLEH and Frankfurt-based TechQuartier, Rentenbank specifically addresses the various challenges faced by start-ups. Rentenbank is also involved as a partner in numerous initiatives to foster innovation and networking within the sector.
Euro remains most important issuance currency
To refinance its promotional business, Rentenbank raised EUR 6.5 billion in medium- and long-term funding on the international capital markets in the first half of 2025 (H1 2024: EUR 4.9 billion). This means that more than half of the planned annual issuance volume of EUR 10 billion for 2025 had already been achieved by mid-year. The most important issuance currency was the euro, accounting for 48% (H1 2024: 27%). The share of US dollar issuance declined to 27% (H1 2024: 53%). This included a 5-year USD global bond of USD 1.5 billion. With investor demand exceeding USD 10 billion and a spread of 7 basis points over US Treasuries, it was the most successful bond issue in Rentenbank’s history to date.
Commercial banks accounted for 50% of medium- and long-term funding in the first half of 2025, down from 53% in the same period of the previous year. Central banks made up 30%, compared to 35% in H1 2024.
Operating result below prior-year level
The operating profit before provision for loan losses and valuation totalled EUR 57.9 million in the first half of 2025 (H1 2024: EUR 97.5 million). This was mainly due to a lower net interest income, largely as a result of higher subsidies, as well as to planned increases in administrative expenses. These additional expenses reflect necessary investments in a modern, flexible IT infrastructure and enhanced IT security. Additional personnel are also required to implement Rentenbank’s various projects and development initiatives. Part of the planned increase in administrative expenses is therefore attributable to a larger workforce.
Capital ratio and leverage ratio remain at high levels
At the end of the first half of 2025 and including for the first time the application of CRR III, Rentenbank reported a high Common Equity Tier One Capital (CET 1) ratio of 32.7% (31 December 2024: 38.3%). The leverage ratio stood at 11.3% (31 December 2024: 10.2%).
To the key figures first half of 2025
Background
Landwirtschaftliche Rentenbank is Germany’s development agency for agribusiness and rural areas. Its promotional mandate covers not only agriculture and forestry, but also the entire food value chain, the increased use of energy from renewable sources, and the promotion of bio-economy solutions. Rentenbank attaches particular importance to the promotion of innovation, including research and development in universities, the early-stage financing of agriculture-related start-ups, and the market introduction and practical use of new technologies and products. Rentenbank’s promotional instruments are subsidies and special promotional loans. The special promotional loans are granted via the lending banks of the ultimate borrowers on a competitively neutral basis. Rentenbank provides funding to banks, savings banks, and local authorities operating in rural areas. The Bank is a federal institution under public law whose capital stock was formed by contributions from the German agriculture and forestry sectors. It is subject to the German Banking Act (KWG) and is regulated by the Federal Financial Supervisory Authority (BaFin) and the Bundesbank. As one of the few triple-A rated institutions in Germany, Rentenbank raises funds in the capital markets.
This press release contains certain forward-looking statements that are based on current expectations, estimates, assumptions and projections of the Management Board and on the information currently available to it. These statements particularly include statements about our plans, strategies and prospects. Such forward-looking statements are identified by words such as ‘expects’, ‘anticipates’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’ and similar expressions. These statements are not to be understood as guarantees of future performance; instead, they are dependent on factors that involve risks and uncertainties and are based on assumptions that may prove to be incorrect. Except where required by law, we assume no obligation to update forward-looking statements after the publication of the present press release.
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