During this period of economic crisis, credit restrictions and other difficulties encountered by the wine world, the BNP Paribas bank puts its cards on the table :
Things are moving in the Gironde region bank sector. The wine industry, which is one of the major money spinners in the region, is attracting attention at the moment.
In fact, the BNP Paribas bank, one of the largest French banks, has just created a special department specially dedicated to viticulture. This is a precedent for the establishment which, despite the world financial crisis, should show a net profit of 3 billion euros for 2008.
The man at the helm of this new wine department is Bordeaux-born Philippe Richébé (left of the photo), who has been working for the bank for 10 years and until recently, at its branch in Toulouse.
"Our bank already has a thousand clients from the wine industry sector, many from the grands crus (fine wines) region and particularly in Saint-Emilion. In this context of economic crisis, we are putting our cards on the table and making public our ambitious plans for development in this particular economic activity. We are interested not only in working with wine property owners but also merchants and other companies involved in the industry, which employs a total of 60,000 people, directly or indirectly, in the Gironde area," says Mr.Richébé, clearly positioning his bank as an serious challenger to other establishments already present in this sector.
Three sub-branches in Gironde :
The new departments team is made up of seven people managing three sub-branches : one in Libourne, a town where BNP Paribas has a traditional foothold in the 'right bank' wine world, and two smaller branches in Pauillac (Médoc) and Langon.
The bank, which employs a staff of nearly 800 people in the region, plans to re-structure under the direction of Mr.Didier Gil (right of photo).
"Our advisors are highly qualified . The wine industry is complex and requires specific skills, whether it concerns buying wine properties, machinery or investing in oak barrels," explains Philippe Richébé, who is well acquainted with the local wine world.
Despite the fact that banks have become much less inclined to lend money to businesses these days, Philppe Richébé clearly announces his bank's intentions :
"We may be swimming against the general current, but we have been planning our move for some time. Although the Bordeaux wine business is experiencing difficulties - and there will be more to come - we have money to lend! I say this to wine professionals : 'Try us and you'll see!' We aim to invest on a long term basis in this important regional economic sector." A statement which may give cause for anxiety amongst colleagues from rival banks.
The "Green Bank" under pressure :
Historically, the Crédit Agricole Bank is the leading financial partner in the region's wine business. Indeed the bank has publicly announced its support for local wine businesses during these troubled times. The Banque Populaire and the Crédit Mutuel are also established banks in the regional wine sector.
BNP Paribas' aim to establish extensive financial relationships within this sector will help to stimulate the competiton. This in turn may well benefit wine professionals at a time when most are complaining about banks, who, anxious to rebuild margins, are refusing to grant loans and turning off the credit taps.
Author:
César Compadre
S.O. 06/02/09
Translated by Maxine Colas.