The loan was contracted by the company on February 1, 2023 for a period of 24 months from the date of signing the contract, respectively until January 31, 2025, to be used as working capital for the purchase of raw materials for the production of soil fertilizers as well as the purchase of granulated fertilizers from import. The capital was used directly for the intended purchases that will go towards the production of inputs for the fall 2023 and spring 2024 sales campaign.
“The one-and-a-half-year anticipated closing of the credit facility is part of the company’s strategy to reduce global leverage in order to reduce pressure on cash-flow”, Norofert said in its report.
Also, in addition to the early closing of this loan, the Company has also paid, up to the date of this current report, the amount of RON5.8 million due to banks for the closing and/or reduction of other short- and long-term lending facilities.
Norofert has a market value of RON96 million and its largest shareholders are Vlad Popescu (with a 36.35% ownership stake), Ileana Popescu (15.01%) and Marius Alexe (12.2%). NRF shares have lost 9.8% so far in 2023, amid deals worth RON10.4 million, as per stock market data.