Rural Bank and Elders announce new nine-year agreement
Rural Bank (a subsidiary of Bendigo and Adelaide Bank) and Elders today announced a new nine-year exclusive agreement, continuing a successful partnership that has supported agricultural growth for two decades.
The new agreement – which will take effect from 4 March 2019 – will see approximately 95 Elders agri finance employees join Rural Bank, building on the two businesses’ shared commitment to Australian agriculture.
While Elders agri finance staff will ultimately work as Rural Bank team members, they will continue to operate from Elders branches, maintaining their regional connections and proximity to customers. Rural Bank customers will still be able to bank through the 400 Elders, Rural Bank and Bendigo Bank locations across regional Australia.
Rural Bank CEO and Managing Director, Alexandra Gartmann, said the new agreement leverages each business’s respective strengths and connection to agriculture – Elders’ iconic brand and extensive branch network, and Rural Bank’s specialist agri-banking expertise.
“Through this change, we are unlocking potential, reaffirming our partnership through continued investment, and evolving a national presence across rural, regional and remote Australia,” Ms Gartmann said.
“At a time when many financial service providers are withdrawing services from regional areas, via Rural Bank, Bendigo Bank and Elders branches, we continue to provide a specialist agricultural banking service across more than 400 locations.
“For our customers it will be business as usual, with no change to banking arrangements or facilities, offering the same people, delivering the same products and services, with the same commitment to helping Australian farmers succeed.”
Elders CEO and Managing Director, Mark Allison, said Elders looks forward to commencing the new era of its partnership with Rural Bank and together, ensuring that Australia’s primary producers can access the financial capital they require to build and operate prosperous agricultural enterprises.
“This new long-term agreement demonstrates a shared passion and confidence in Australian agriculture, and the value that a specialist and knowledgeable farm finance offering provides.”
This new nine-year agreement replaces the existing agreement that had been in place since 2008*.
* Footnote: The new agreement includes termination for convenience rights for both parties at the end of years three and six. Commercial details are contained in Elders’ (ELD) announcement to the ASX contained here: https://www.asx.com.au/asxpdf/20181128/pdf/440r171zyrdsgg.pdf