Annual Report 2016
Welcome to the NIBC Annual Report 2016 website, where you will find out more about our operations, performance and client-focused strategy.
The year has been momentous for our business, as we extended our offering to mid-sized corporates in select sectors and entrepreneurial retail customers. We have moved steadily forward in our ambitions by significantly transforming our culture, structure and infrastructure. In doing so, we are guaranteeing our capacity to help clients navigate the challenges and opportunties they will face for years to come.
We are also proud to be living our values - professional, entrepreneurial and inventive, and applying them to everything we do, including the way we measure and manage our performance. As we look to 2017, we are optmisitic and more confident than ever before in our ability to serve clients at their most decisive moments in business and life.
Paulus de Wilt
CEO and Chairman of the Managing Board
Van Dijck Groenteproducties
The Netherland’s leading leaf vegetable cultivator, Van Dijck Groenteproducties (VDG) is best known as the main supplier to supermarket chain Lidl, delivering award-winning local produce for five years running. The company runs 1,000 hectares of agricultural fields and five hectares of greenhouses, and operates its own washing, sorting, packaging and transportation facilities. Since 2015, VDG has turned to NIBC among other banks to help it finance new greenhouses to meet growing demand.
NIBC supported and refinanced VDG in late 2015 for the construction of high-tech greenhouses for the cultivation of leaf vegetables across five hectares. The greenhouse was financed with a combination of mezzanine financing provided by NIBC, and a senior facility offered jointly by NIBC and another bank. In 2016, NIBC provided an additional senior facility for VDG to expand its greenhouse by 3.5 hectares, one year ahead of its original growth plan.
We are supporting the rapid acceleration of VDG’s growth ambitions, and enabling it to continue moving forward and meet its long-term supply agreement with main customer Lidl.
The new greenhouse became fully operational in early 2016 and was completed on time and within budget. The greenhouse is performing well due to increased demand for high quality leaf vegetables produced locally and year-round, ensuring complete traceability, which is becoming increasingly important for supermarkets.
Founded in 1994, Fletcher Hotels is the largest and most popular hotel chain in the Netherlands, with 73 hotels, almost 4,000 rooms and more than 2,700 employees. After considering a range of options to support the next stage in its growth journey, the company was recently sold in a management buy-out led by CEO Rob Hermans and CFO Edwin van Heteren.
NIBC was invited to team up with the senior managers and with Luxembourg-based hotel investors Xead Group Sarl, to buy out the business for an undisclosed amount from original founder Chris Luken.
By supporting Fletcher’s acquisition, we have helped this hugely successful and entrepreneurial company to move forward and realise its long-term ambitions, while maintaining its proud Dutch roots.
Fletcher Hotels is well positioned to continue its expansion at home and internationally, growing its portfolio to 100 hotels and further strengthening its brand.
BillFront uses its unique data-driven risk management technology to provide invoice-financing to fast growing digital advertising companies, app developers and publishers. Its innovative platform connects directly to its customers’ invoicing systems and offers flexible credit lines against future receivables, thereby freeing up large chunks of working capital.
In doing so, BillFront renders a vital service for the digital media economy, enabling its underbanked clients to accelerate their growth
More recently, the London and Berlin-based firm has looked to secure new funding to meet fast-growing demand and continue investing in the development of its proprietary technology.
NIBC acted as lead arranger and lender for a tailor-made structured financing solution in US$ 35 million financing round in November, 2016 to support BillFront at this decisive moment in its development.
We are proud to have supported a start-up company with this complex and innovative transaction. The deal structure allows BillFront to continue moving forward by receiving debt funding to fuel its growth in a scalable way and in line with its operational needs.
The funding has enabled BillFront to execute its vision of becoming the leading alternative finance platform for digital media businesses, particularly those impacted by the long payment terms offered by many large media buyers.
Rotterdam-based Anthony Veder is an integrated shipping company that specialises in shipping liquefied gas products for its long-standing clients in the, chemicals, oil and gas industries. Over the past ten years, the company has expanded by investing in innovative small and medium-sized gas carriers. Today, its fleet consists of 31 vessels, which are contracted through cargo contracts and long-term charters to major European cargo traders.
The company has turned to NIBC to finance two of its existing carriers, as well as the pre-delivery of an innovative new LNG bunkering vessel named ‘Energice’. The revolutionary new tanker, which was recently commissioned for construction in Germany, will use the boil-off from its own cargo to fuel its propulsion system, thereby significantly reducing its emissions.
We closed a US$ 25 million plus EUR 8 million bilateral financing facility with the ship owner and operator in 2016.
Anthony Veder was satisfied with NIBC’s quick and pragmatic approach to the deal, which has allowed it to continue moving forward. The transaction was further supported by our longstanding relationship with this important client.
NIBC is a first mover in the introduction of so-called ‘Green Scrapping’ language into its loan agreements, which ensures that ships are environmentally and socially responsible recycled at the end of their economic lifetime. NIBC is proud to be a frontrunner in supporting green shipping standards, which have now been endorsed by a major ship operator like Anthony Veder.
Once delivered, the Energice will be chartered out to integrated gas company Gasum in Finland, to secure LNG needs in the northern region of that country. By eliminating the use of heavy fuel oils, the vessel will generate much lower carbon and nitrogen oxide emissions and a near 100% reduction in sulphur emissions.
Personal & Informatik
Founded in 1968 and headquartered in Wiesbaden, Germany, Personal & Informatik (P&I) is a leading provider of integrated HR software solutions. The business focuses on the core aspects of business critical HR processes such as payroll accounting, time & workforce management, recruiting, incentive management and performance management.
With 15,000 customers ranging from small and medium-sized private businesses to large public sector organizations across Germany, Switzerland and Austria, P&I has a long track record of delivering consistent growth due to its resilient business model, low customer churn, and high levels of customer satisfaction.
In late 2016, Permira, the global private equity firm, announced its intention to acquire P&I and support the business through the next phase of its growth via an investment strategy. This includes the strengthening of its sales force to capitalise on growing market potential, and expanding into new customer segments and complementary acquisitions where there are a number of smaller competitors.
Building on its longstanding relationship with P&I, NIBC’s Leveraged Finance team acted as Bookrunner, Underwriter and Mandated Lead Arranger, in consortium of lenders, in Permira’s EUR 465 million buy-out financing.
NIBC has had a relationship with the company since 2010 when it supported the public-to-private buyout by Carlyle as well as the subsequent acquisition and refinancing by HgCapital.
The transaction supports P&I’s future growth potential, while also building our relationship with Permira, one of the world’s largest private equity groups. Permira is well placed to support P&I and help it move forward, with a long and successful track record of investing in technology and software providers.
La Cantina Beach Club
NIBC treats collateral differently to offer its retail customers inventive and tailor-made products that fit their unique circumstances.
When The Hague-based entrepreneur Mr. Arnold was looking for ways to buy-out his restaurant business partner and fellow shareholder, he turned to NIBC to devise the most creative solution. Each partner owned 50% of La Cantina, a popular beach club restaurant located on the widest beach area between the bustle of Scheveningen and Kijkduin outside The Hague.
We took a creative approach to Arnold’s needs to arrange a mortgage loan that enabled him to buy his partner’s 50% stake.
Due to the difficulties associated with using beach-based properties as collateral, NIBC arranged a buy-to-let mortgage based on a second property the customer owned in the centre of The Hague, which he rented out. Comprising both long and short-term tranches, the mortgage used both the value of the second property and its rental income as collateral.
By structuring the solution this way, NIBC was also able to offer considerably lower interest rates than the business loans that Mr. Arnold had been offered by other banks.
Through this inventive and sustainable solution, Mr. Arnold is now the proud 100% owner of La Cantina beach club and can continue moving forward on his plans.