In May of that year when the French government sought to place a loan of 155 million guilders, payable in guilders, Swiss francs or US dollars, the Amsterdam branch underwrote the sizeable amount of 50 million guilders. This deal was followed, the next month, by another loan of 100 million guilders in which the Amsterdam and Geneva branches both participated.

Belgian loans

In 1920, the Amsterdam branch was authorised by headquarters to discount 1,700,000 guilders worth of Belgian 5-year Treasury bills. In 1927, the Belgian department store company A l innovation issued bonds to a nominal value of 30 million guilders on the Dutch market. The Amsterdam branch was authorised by headquarters to underwrite half the total amount, sharing the placement risk with the Gebroeders Texeira de Mattos firm. However, for some unknown reason the branch restricted itself to providing subscription facilities at its counters, taking no placement risk for the issue. Meanwhile the Brussels branch did take on placement risk to the tune of 7.5 million guilders.

In 1938, the branch took part in an operation to place 3-month notes issued by the Belgian government, which were discountable at the national central bank, the Nederlandsche Bank.

The 1934 agreement between the branch, Lazard Frères & Cie and Mendelssohn & Co.

In December 1934, the Amsterdam branch signed an agreement with Lazard Frères (Paris) and Mendelssohn (Berlin). The agreement committed the parties to offer business to each other and cooperate on deals. Specifically, the Banque de Paris et des Pays-Bas branch and Lazard Frères, commit to jointly carry out negotiations and operations related to Dutch and Indo-Dutch deals on the Paris market.

This agreement fell within the special relationship that the Banque de Paris et des Pays-Bas maintained with these two financial firms. It is interesting to note that the relationship between Banque de Paris et des Pays-Bas and Mendelssohn originated in Amsterdam in 1927. From 1928 on, recalls Eric Bussière75: relations between Fritz Mannheimer and Horace Finaly became closer. The two establishments did many deals together and Paribas (sic) came in as a sub-participant of Mendelssohn Amsterdam in a number of deals done on the Dutch market for foreign companies, for ARBED76 and Sofina77 among others.

75. In Bussière, Eric, Paribas, Europe and the World 1872-1992, Fonds Mercator, Anvers, 1992, p.122

76. ARBED (Aciéries Réunies de Burbach-Eich-Dudelange) was a major Luxembourg-based iron and steel company created in 1911. It merged in 2002 with two other European steel companies to form Arcelor.

77. The Société Financière de Transports et d Entreprises Industrielles S.A. (Sofina) is a public company established under Belgian law, founded in 1898.

BOND ISSUANCE NOTICE FROM LES GRANDS MAGASINS

A L INNOVATION , PUBLISHED IN THE NIEUWE ROTTERDAMSCHE

COURANT, MAY 1927

Europeesche Waarden (European Securities)

The N.V. Amsterdamsch Administratiekantoor voor Europeesche Waarden* was established in 1926 by a few Amsterdam brokers. Its purpose was general, but already in 1927 it introduced certificates on behalf of three French banks. A certificate of 3,000 french francs represented 1,000 french francs worth of shares in each of the three banks Banque de Paris et des Pays Bas, Credit Lyonnais and Comptoir National d Escompte de Paris. This device was designed to make trading in foreign shares in Amsterdam easier.

The dividends paid by the banks were then transferred to the owners of the certificates, minus a deduction for commission.

*Amsterdam Administration Office for European Securities

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