The issue was carried out via a private placement at the Bucharest Stock Exchange, which was oversubscribed and saw a diversified audience, both among institutional investors (open-end funds, commercial banks, international financial institutions), and among investors from the “private banking” category.
The bonds issued by Agricover Holding are euro-denominated, unsecured, and the nominal value of a bond is EUR50,000, with a fixed interest rate (coupon rate) of 3.5%.
The amount attracted through the bond issue will be used to finance the lending operations of Agricover Credit IFN SA, a subsidiary of Agricover Holding SA, specialized exclusively in financing farmers in Romania.
The bond issue and private placement process was brokered by Banca Comerciala Romana (BCR) and BRD Groupe Societe Generale, as sole coordinators of the transaction, through their teams specialized in operations carried out on capital markets. Law firm Schoenherr și Asociatii SCA provided legal assistance and Ernst & Young Assurance Services S.R.L and KPMG Audit SRL provided financial audit services.
Agricover Group carries out activities of Agri-Business, Agri-Finance, Agri-Food and Agri-Technology, through four entities controlled by Agricover Holding SA: Agricover SA, Agricover Credit IFN SA, Abatorul Peris SA and Agricover Technology SRL.
Businessman Jabbar Kanani is the majority shareholder of Agricover Holding SA, with a 87.27% ownership, while the European Bank for Reconstruction and Development (EBRD) holds a 12.73% stake, following a share capital increase carried out in November 2017.