The funds attracted from stock market investors will be used for investments, potential mergers or acquisitions, and potential participation in start-ups in the farming business. Overall, the Agroland Group, which includes Agroland Agribusiness, has attracted over RON 32 million from the capital market, in 2020 and 2021, with two private placements for bonds and two private placements for shares.
“The listing of the Agroland Agribusiness bond issue reflects the trust the Agroland team have in the resources provided by the capital market. Three months after listing, the company appealed once more to the funding mechanisms available on the stock exchange, thus attracting investor interest in their plans for growth. Moreover, it is the fourth funding operation on the capital market for Agroland Group. We are looking forward to more listings that the two companies of the group will conduct on the stock exchange”, stated Radu Hanga, President of Bucharest Stock Exchange.
“The listing of AAB26 bonds is another step in our commitment to use capital market instruments to finance our development plans, which we have identified in this period of sustained growth that agriculture in Romania is going through. We work to accelerate the development of the company, by intensifying the pace and quantities of agricultural inputs purchased and sold, as well as to create customized products, according to our own recipes, continuing the development in the direction of grain trading. We are also considering the creation of our own range of organic products, in the context of strong support from the European Union for the development of organic crops. We will continue to be involved in the AGTech TM project in the future, after this year we offered 10,000 euros to support two companies at the beginning of the road, in which we have full confidence: Urban Agriculture Technologies, which designed an ingenious solution for growing fresh plants throughout the year, respectively ADGraft, which aims to help farmers and seedling farms to automate their production, with the help of the first Romanian robot used for grafting vegetables. We are convinced that we will achieve beautiful results, which will give satisfaction both to our team, very dedicated to business growth plans, and to shareholders and bondholders”, said Florin Radu, CEO, Agroland Agribusiness.
In a private placement of bonds, the company issued and sold 100,000 corporate bonds, with a value of RON100 per bond. The company managed to attract from investors funds worth RON10 million, maturing on August 2, 2026, with an annual fixed coupon rate of 9%, payable semi-annually. During the private placement held in July 2021 a number of 110 investors subscribed, out of which 7 were qualified and 103 retail investors. The private placement and listing were made with the support of TradeVille.
Agroland Agribusiness has been listed with the AeRO market since June 15th, the second company in the Agroland Group listed on the exchange. The June listing was preceded by the running of a private share placement that enabled the company to collect more than RON 6mn from investors. Its mother company Agroland Business System went public on the AeRO market on March 1, 2021.
Agroland Agribusiness started operating in 2016 as a division of the mother company Agroland Business System, and since 2017 has been operating independently in both legal and financial terms. The company has two business lines: sale of inputs for conventional and organic agriculture and cereals trading. Agroland Agribusiness operates in the South-West of the country and aims to cover the South and West completely.
The company estimates a 33.4% turnover increase for the first half of 2021, up to about RON13.34 million. For the same period of this year, Agroland Agribusiness estimates a RON 7.9 million net result. In 2020, Agroland Agribusiness registered revenues of RON18.3 million (+82.8% on the year), while its net profit was RON1.2 million (+231% on the year) with a net margin of 6.82%.