Macquarie Bank has teamed up with Royal Bank of Scotland to offer global commodity risk management services to the latter's client base. The agreement covers oil and oil products, natural gas, precious and base metals and agricultural products, according to a Macquarie spokeswoman in London. The partnership is in its early stages, she added, declining further comment. Simon Grenfell, head of the energy markets group at Macquarie in London, declined comment. Calls to RBS bankers were not returned.
An RBS spokesman said the partnership has already pulled the trigger on some transactions, declining to reveal details. He continued that electricity hedging may be added to the mix at a later date.
According to Macquarie Bank's 2003 annual review, the firm's agricultural commodities division "provides risk management solutions to the agricultural industry globally, its core business being the provision of tailored, over-the-counter hedging transactions." The review also notes that Macquarie's energy trading division started operations this year in London providing risk management services to oil industry players. "While this is a start-up business with little income contribution, the transaction growth is encouraging with profitability expected in the near term," the review continued.
