Kuala Lumpur – 6th October 2007 – Leading global financial group Rabobank International is reported to be looking to expand its operations into Malaysia, following similar expansion in Indonesia and China.ow

Rabobank is widely regarded as one of the leaders in promoting Corporate Social Responsibility (CSR) and Socially Responsible Investment (SRI) and began a policy in the mid-1990s to integrate sustainability issues into all of its business processes.

Its main focus has been on projects that show economic value added from sustainability, including green financing and sustainable investments that reflect the viability of good CSR to businesses in the long run.

The Dutch bank is reported to be talking to local development finance institutions to provide assistance on technical issues and credit processes which is seen as a starting point for merger and acquisition projects for regional expansion.

Last year Rabobank acquired a 10% stake in China's United Rural Cooperative Bank of Hangzhou. It also owns two small banks, Bank Haga and Bank Hagakita, in Indonesia.

Its strategy has been to take a distinct, commercial approach to CSR especially in the food and agricultural sector. The bank has previously announced that it was interested in acquisitions as a way to grow in Asia, given its focus on financing in these sectors.

Malaysia and Indonesian account for almost 85% of global palm oil output and as a specialist in this sector, Rabobank is keen to promote this source of sustainable agriculture in which Malaysia in particular is a global leader.

The forthcoming Synergy Drive merger between Sime Plantations Sdn Bhd, Kumpulan Guthrie Berhad and Golden Hope Plantations Bhd will create the largest single oil palm company in the world. These three companies are widely recognised as leaders in environmentally sustainable plantation management.

Rabobank has indicated that it hoped to become a “house banker” for Malaysian companies, which focus on sustainable palm oil, biodiesel, refineries, seafood and other agriculture-related activities. Rabobank is also keen to be active in the development of the Northern Corridor Economic Region.

The decision by Rabobank to investigate Malaysian expansion is seen as further evidence of the potential for environmentally sustainable investment in the country and follows the announcement by Amanahraya Investment Bank Ltd and Asian Finance Bank Berhad of plans to launch a RM1 billion Islamic Green Fund Malaysia in 2008.

Dr Geoffrey Williams, CEO at CSR and SRI specialists OWW Consulting Sdn Bhd in Kuala Lumpur said, “Reports that a leading European bank is looking at Malaysia for sustainable investment opportunities reflects the success of Malaysian companies in CSR and environmentally viable businesses.”

“It provides a very important indicator that CSR and environmentally sustainable management can attract significant investment from major international finance houses,” he added. “Looking forward I expect that more socially responsible investors will pick out Malaysian companies as profitable, long-term investments. Those companies with good environmental CSR that is clearly reported to international standards will be first on the list for the SRI funds.”

Rabobank already has a marketing office in Kuala Lumpur and a branch in Labuan which were both set up last year. Its credit rating from Standard & Poor's and Moody's is AAA, making it the only privately owned bank in the world with this status.