RBS 2005 Annual Report Download - page 21

Divisional review
19
2005
 A controlled expansion of our franchise over
the last five years across France, Germany, Spain,
Italy and the Nordic region has enabled us to
capture and develop major client relationships in
continental Europe. We now provide a full range
of products to customers in these countries.
 In the Asia Pacific region we have selectively
built up our presence, particularly where we have
identified opportunities to leverage our expertise in
delivering financial markets products to financial
institutions. We continue to achieve impressive
results from the region, where we now employ
500 people. In Australia our wide range of products
has been particularly successful with both corporate
and institutional customers.
 Our worldwide team of structured finance
professionals provides specialised financing solutions
for acquisitions, property, projects, infrastructure
and commercial equipment including aircraft, ships
and trains. In Europe we have a long-standing
market-leading position in leveraged finance as
a preferred partner to financial sponsors. Globally
we are the No.1 project finance bank and No.3
commercial aircraft financier.
 Our financial markets activities benefit from
our established platform and the real scale that we
have developed. We are able to provide a full range
of solutions that deliver against different customer
requirements, from rapid access to electronic
platforms, to high quality advice and excellent
execution by highly skilled sales people.
2005 successes include:
 RBS arranged and underwrote £1.7 billion
of debt facilities to finance Gala Group’s
acquisition of Coral Eurobet in the UK. This
transaction was one of the largest-ever sterling
leveraged transactions (awarded Domestic Deal
of the Year by Acquisitions Monthly).
 We were awarded the role of Sole Lead
Arranger on the 470 million debt refinancing of
the api Energia Power Project in Italy due to our
long-term relationship, structuring expertise and
market-leading position. api Energia is one of three
integrated gasification combined cycle plants in
Europe showcasing an environmentally friendly
gasification process which converts refinery residue
to electrical power. This transaction and our ongoing
support have enabled the api Group to continue
with its development plans and long-term growth
objectives.
 RBS was instrumental in the largest Public
Tender Offer ever made by a privately owned
company in Germany, when it served as the exclusive
financial arranger to Spohn Cement GmbH in its
acquisition of Heidelberg Cement AG. RBS was
mandated as Sole Bookrunner to underwrite and
arrange the financing needs of the bid, including the
provision of acquisition facilities totalling 3.1 billion.
 When RBS co-arranged the US$1.2 billion
private placement for Wolseley, the world’s largest
distributor of heating and plumbing products, it set
a market record for private placements.
 RBS jointly led the £18 billion acquisition of
UK mobile operator 02by Telefónica, underwriting
£6.1 billion. This was one of the largest acquisitions
in the telecom sector and the largest ever single
acquisition made by a Spanish company (awarded
Most Impressive Loan and Best Western European
Loan by Euroweek).
 The UK Debt Management Office and Her
Majesty’s Treasury mandated RBS to act as one of
four Bookrunners in the UK Government’s first ever
syndicated offering in sterling bonds and the first
50 year inflation bond in the world.
 Through long-standing relationships with both
of the UK’s leading cable companies, deep sector
knowledge and tactical use of our balance sheet we
helped to pave the way for the merger between NTL
and Telewest, thereby consolidating our position as a
top-tier partner bank to this customer.