Agricover Holding, one of the biggest agribusiness groups in Romania, has raised EUR 40 million through a private bond placement.

The bonds will be listed on the Bucharest Stock Exchange in the near future.

The bond buyers are mainly institutional investors and rich individuals through private banking portfolios and the demand was higher than the offer.

Small investors couldn’t participate in this placement as the value of one bond was set at EUR 50,000. The yearly coupon is 3.5%.

The group will use the money drawn with the bond issue to finance the lending operations of its subsidiary Agricover Credit IFN, which finances local farmers.

BCR and BRD-SocGen managed the bond placement, Schoenherr si Asociatii provided legal assistance, while EY and KPMG were the auditors.

Founded 20 years ago, Agricover Holding currently operates in Agri-Business (through Agricover SA), Agri-Finance (Agricover Credit IFN), Agri-Food (Abatorul Peris), and Agri-Technology. Jabar Kanani owns 87.27% of the group’s shares while the European Bank for Reconstruction and Development (EBRD) holds a 12.72% minority stake following a capital increase in November 2017.

(Photo: Andres Oliveira/ Dreamstime)

andrei@romania-insider.com