AMRO SUCCESSFULLY
ENTERS U.S. COMMERCIAL
PAPER MARKET
STAFF
BUUtTW
amro scope
APPOINTED MEMBER OF THE BOARD
OF MANAGING DIRECTORS
AUSTRALIAN
COMMERCIAL
DELEGATION
RECEIVED DY AMRO
INTERNATIONAL
Dr H. Ruding:
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AMSTERDAM - Amro's
commercial paper business in
the United States is going very
favourably, according to Baron
R. van der Borch tot Verwolde.
Amro is one of the first large
European banks to have
become active on the U.S.
commercial paper market,
which is used exclusively by
large business corporations,
banks, and institutional
investors for the purposes of
attracting and investing funds.
With a current turnover of about
$125 billion, this market is used to
trade short-term business debt
maturing within nine months;
placing paper with a longer term
requires registration with the
Securities and Exchange
Commission, a procedure which
can be both complex and
time-consuming. Interest rates are
competitive, and businesses in a
position to do so often prefer to
borrow on this market than, for
instance, in the form of relatively
more expensive bank loans. The
interest rates for commercial paper
are also often lower than those on
the Eurodollar market, thus
enabling Amro to profitably
re-invest funds attracted in this
way.
INTFRNATtOrtAL
Amroscope International
is produced specially for
the personnel of
Amro branches and offices abroad.
Plublished every two months
Editorial address:
Bureau for Public Relations
Herengracht 597
1017 CE Amsterdam-C.
The Netherlands.
Telephone: 283656
Telex: 11006 amro nl
Editorial Staff: Johan B de
Lange and Tonnie Marrée
Editor: Joop C Twift.
Articles published in
Amroscope International may
be reprinted with permission
Amro is currently only permitted
to hold a net outstanding balance
of placements and redemptions
totalling $300 million. The actual
placement is handled by the First
Boston Corporation in New York,
which keeps in touch daily with the
Foreign Exchange department at
head office in Amsterdam.
This project took considerable
effort to set up, as was confirmed
by Baron van der Borch, who. as
assistant to Mr F. Hoogendijk
(Member of the Board of
Managing Directors), was
responsible for the coordination. In
view of the fact that this activity is
in many ways comparable to bond
issues, the International Division
requested the New Issue and
Syndicates department to take the
preparatory steps. Permission from
the SEC was required to gain
access to this market.
Potential buyers have to be able
to satisfy themselves about the
'quality' of their investments, and it
was important that Amro should
obtain financial ratings from the
two independent organizations
responsible for this: Standard and
Poor's Corporation (scale A3, A2.
and Al) and Moody's Investor
Service (scale P3. P2. and PI). The
ratings in the two scales can be
interpreted to mean good, better,
and best, respectively; Amro was
|k
(From left to right): Mr C. de Koning, Mr W. Stephan and Mr R.
Hamer
assigned top ratings by both
organizations: Al and PI.
Extensive facts and figures about
Amro had to be compiled for the
investigation which the two rating
services conducted in Amsterdam.
The Financial Information and
Planning Directorate undertook
much of the preparatory work, a
considerable task given that the
American banking system differs
substantially from its Dutch
counterpart. Amro's move into this
market should also be seen against
the background of the possible
expansion of our New York
representative office to a full
branch.
AMSTERDAM - Effective 1
January 1981, Dr H. Ruding
has been appointed Member of
the Board of Managing
Directors.
Between 1965 and 1970, Dr
Ruding held a position in the
General Treasury of the Dutch Or H
Ministry of Finance in The Hague.
and was head of the International
Monetary Affairs department from European Economic Community's
1969 onwards. At the same time, he Monetary Committee,
was Deputy Member of the Between 1971 and 1976, Dr
AMSTERDAM A commercial
delegation of 23 people from the
Melbourne Chamber of Commerce
completed a tour of the European
Economic Community countries at
the beginning of June last.
During its three-day stay in the
Netherlands, the group was also
received by Amro. In addition to
numerous meetings, the
programme included a canal tour
of Amsterdam, a visit of the
European Options Exchange
(located in Amsterdam), and the
Stock Market.
The delegation was led by
Mr R. Hamer, who is both Prime
Minister and Minister of
Development. Decentralisation,
and Tourism of the Australian
State of Victoria.
Ruding was active in our bank,
holding the position of General
Manager of the Securities Division
from 1974 onwards.
In January 1977 he left for
Washington D.C. as one of the
Executive Directors of the
International Monetary Funds. He
was successor in this position to
another Dutchman. Dr P. Lieftinck.
